According to the US government, the penny now costs 1.6 cents to produce due to the rising zinc price. There is a low supply so the cost of zinc is increasing and causing the production cost of the penny to creep up.
About 97% of the penny is made up of zinc so that is why the zinc supply has a large influence on the price of production. The government has toyed with the idea of getting rid of the idea of the penny and having merchants and charges round up to the nearest 5th or 10th of a dollar.
Having this change would greatly affect the economy and the costs of products. Similar situations occurred in Australia and Canada with some slight repercussions.
Because of the increase in demand for zinc you can expect the stainless steel market to reflect that in price changes in the upcoming months. Stay tuned to the iScrap App for further development of the price of scrap zinc moving forward.
Read More About The Cost of the Penny