One of the assets of many estates is a big container of pennies. What can be done with these tiny assets?
In Canada, production of the penny stopped in 2014. However, the penny retains its value. Although the penny has been phased out, it still remains legal tender.
Banks will still accept pennies. However, most banks will require that they be rolled.
Don’t want to roll? Coinstar has kiosks around the city where you can dump your coins and convert them into cash for an 11.9% fee. If you choose to receive the value on a gift card, there is no fee.
Transporting them to the bank will not be easy. As each penny weighs approximately 2.5 grams (weight varies depending on composition), a kilo of pennies would only have a value of $4.00 (or $1.81 a pound).
[Fun fact: one pound of dimes, quarters and half-dollars all have the same value: $20. (Figures are for US coins. Canadian values should be similar, or close enough.) Good to know if you are in the midst of a looting and are not sure which bag of money to take. Pennies and nickels don’t fall into this pattern. Best leave the pennies and nickels behind.]
Part of the reason for eliminating the use of the penny was financial: the cost of producing and distributing each penny was 1.6 cents in 2012. Other reasons given by the Royal Canadian Mint include “the increased accumulation of pennies by Canadians in their households” (ie, that giant jar of pennies every estate seems to have), environmental considerations and the significant handling costs the penny imposed on the economy.
According to a 2014 report, the Royal Canadian Mint has redeemed 4 billion pennies. However, 31 billion were still in circulation at the time.
The redeemed pennies are being recycled. The pennies are first sorted according to metal content. Pre 1997 pennies are between 95% and 98% copper. Post-2000 pennies are 94% steel, with copper plating.
Before taking your pennies to the bank, you may want to sort through them first. Some pennies have significant collector value. For example, a certain 1936 Canadian penny, the “dot” coin, has the likeness of King George V on one side. New coins were to be made following George V’s death, using the likeness of his heir apparent Edward VIII. However, Edward VIII abdicated in 1936. The Royal Canadian Mint didn’t have a mold of the “new guy”, George VI, so the mint made pennies in 1937 using the prior monarch. The pennies have the year “1936”, with a raised dot below the date to signify that they were in fact made in 1937. In 2013, one of these sold for $253,000 US.
Mentalfloss has a list of other things to do with pennies, other than depositing them at the bank. The list includes putting them in a sock, freezing them, and using them as a cold compress. Another option is to glue them onto other things, like a vase, coaster or picture frame. Penny floors, anyone?
As Eddie Shack used to say, “Look after the nickels and dimes, and the dollars will look after themselves.”
Thanks for reading.