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It Costs Seven Cents to Make a Nickel, So the U.S. Mint Had a Computer Simulate Cheaper Coins

 
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 Posted 06/27/2018  11:38 am Show Profile   Bookmark this topic Add jbuck to your friends list Get a Link to this Message

Quote:
As the value of precious metals fluctuates over time, the U.S. Mint has to constantly find new ways to keep currency manufacturing affordable. A five-cent nickel that costs as much as seven cents to make is a problem, but so is a coin that suddenly looks and feels different because its metallurgic ingredients were changed. To solve this problem, the U.S. Mint turned to computer simulations to help it redesign a more cost-effective nickel.



Quote:
In the end, the researchers created a prototype five-cent piece made from a mix of copper, zinc, and nickel that was about 40 percent less expensive to produce than what's banging around in your pockets right now



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 Posted 06/27/2018  11:44 am  Show Profile   Bookmark this reply Add nfine to your friends list Get a Link to this Reply
Martha sure looks good on that fantasy coin.
Remember, what the Dormouse said.
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 Posted 06/27/2018  11:45 am  Show Profile   Bookmark this reply Add dave700x to your friends list Get a Link to this Reply
It may cost .07 to make it but think of how many times it's used over the course of it's life. It's still common to find 1964 nickles in change and even older. Well worth the .02 in my opinion...
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 Posted 06/27/2018  11:49 am  Show Profile   Bookmark this reply Add Alpha2814 to your friends list Get a Link to this Reply
That was interesting. I particularly like the ways they changed the visual design to get a similar feel.
Working on: Peace dollars (two to go), US type (Bust era), Chinese pandas, and San Francisco tokens.

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 Posted 06/27/2018  11:53 am  Show Profile   Check TNG's eBay Listings Bookmark this reply Add TNG to your friends list Get a Link to this Reply
I kinda wish Martha would go on it. It looks better than the current Jefferson.
Martha Skelton Jefferson 1748 - 1782 was the wife of Thomas Jefferson. Died long before he became president.
I think I'd be happy if the Jefferson nickel series ended along with a metal composition change.
I would be very happy if they quit wasting money on coins that cost more than they are worth.
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 Posted 06/27/2018  1:05 pm  Show Profile   Check chafemasterj's eBay Listings Bookmark this reply Add chafemasterj to your friends list Get a Link to this Reply
Thanks for the article jbuck. Very interesting. At least they're not plating zinc with something.
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 Posted 06/27/2018  1:24 pm  Show Profile   Bookmark this reply Add vonigohcr to your friends list Get a Link to this Reply
7 cents to mint a nickel sounds terrible but it is only part of the equation. There are two basic questions that need to be considered:
1) What is the cost of the metal in the planchet. If a consumer can return a higher value from melting a coin then they will... That is the reason we no longer have silver in our circulating currency. The melt for a Canadian silver dollar (pre-1968) is approx $13 CDN... if these were still issued as currency then the supply would evaporate into the melting pot within weeks of release. I assume Morgans & Peace $'s have the same dynamic.

2) Presuming the planchet cost is less than the face value then the next measure is the lifetime cost of the coin. This includes all the times the government touches the coin from the original alloy smelting, minting, shipping to banks, shipping back to the mint at end of life and remelting of old & obsolete coins. I would imagine that it is quite a bit more than 7 cents however as an enabler of the economy, the lifetime value needs to exceed the lifetime cost.

The reasons above are why the UK retired the half penny and Australia, New Zealand and more recently Canada retired the 1 cent. It is also why Canada retired the $1 and $2 bills and replaced them with coins... the lifetime cost was less. I am actually surprised that the US still issues 1 cent coins given the low purchasing power of the coin and $1 bills when there is a much cheaper coin alternative available.

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 Posted 06/27/2018  2:05 pm  Show Profile   Check Errers and Varietys's eBay Listings Bookmark this reply Add Errers and Varietys to your friends list Get a Link to this Reply
Very interesting! Thank you for sharing this.
Errers and Varietys.
More information about Die Deterioration? http://goccf.com/t/317950
Retired U.S. Mint Coin Die Set information. http://goccf.com/t/302961
1988 P LMC RDV-006, 1998 P LMC Wide AM, and 2000 P LMC Wide AM. http://goccf.com/t/327834 http://goccf.com/t/294303 http://goccf.com/t/312900
1973 D Lincoln Memorial cent With Recurring Die Subsidence Error Information. http://goccf.com/t/304624
Machine Doubling tutorial. http://goccf.com/t/332421
Die states progression on coins. Scroll down, so you can see the different die state progressions. http://goccf.com/t/325638
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 Posted 06/27/2018  4:23 pm  Show Profile   Bookmark this reply Add cladking to your friends list Get a Link to this Reply
If they switched to aluminum they would reduce the cost by 70%. Then in a few years they could shrink it to the size of a cent and reduce the cost another 40%.

Meanwhile the recovery of cu/ ni from existing coins could pay for the transition.

The US government is pound foolish and penny foolisher.
Time don't fly, it bounds and leaps.
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 Posted 06/27/2018  4:24 pm  Show Profile   Bookmark this reply Add jbuck to your friends list Get a Link to this Reply

Quote:
At least they're not plating zinc with something.
True!


Quote:
I am actually surprised that the US still issues 1 cent coins given the low purchasing power of the coin and $1 bills when there is a much cheaper coin alternative available.
You are not the only one. Both needed to get gone years ago.


Honestly, both the cent and nickel need to be discontinued. The dime is "the new cent" in terms of purchase power and has been for a while.
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 Posted 06/27/2018  6:26 pm  Show Profile   Check 52Raymo's eBay Listings Bookmark this reply Add 52Raymo to your friends list Get a Link to this Reply

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Martha sure looks good on that fantasy coin.


Oh, Sally Hemings would be a good choice.
Oregon coin geek.....*** GO BEAVS ! ! ! ***
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 Posted 06/27/2018  9:56 pm  Show Profile   Bookmark this reply Add CollegeBarbers to your friends list Get a Link to this Reply
Very interesting article, thanks for sharing jbuck! I for one think this is a great idea to use computer simulation instead of physically striking various alloys. If they can reduce the cost by 40%, I'm all for keeping the nickel. (The cent on the other hand just needs to go.)
Searching for some US modern coins (cents through dollars) via my want list.
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 Posted 06/28/2018  09:02 am  Show Profile   Bookmark this reply Add just carl to your friends list Get a Link to this Reply
As has already been stated in the past, no need to retire any coins just yet. Soon enough no coins will be necessary. Everything will be done with plastic cards. Changing the type of metal is just wasting time. Stopping all coins soon will be the way to go. If the government would slowly reduce the amount of coins being made now, more and more people would go with plastic cards.
just carl
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 Posted 06/28/2018  11:17 am  Show Profile   Bookmark this reply Add Kurrency Ken to your friends list Get a Link to this Reply
Looks great. Let's put her on the $20 note. She's been there before.
Maybe we'll go to polymer notes as well, they last longer.

KK
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 Posted 06/28/2018  1:34 pm  Show Profile   Bookmark this reply Add basebal21 to your friends list Get a Link to this Reply

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. I for one think this is a great idea to use computer simulation instead of physically striking various alloys.


I wouldn't be the least bit surprised if that switch leads to a lot of unforseen issues especially quality issues.
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 Posted 06/28/2018  2:10 pm  Show Profile   Check chafemasterj's eBay Listings Bookmark this reply Add chafemasterj to your friends list Get a Link to this Reply

Quote:
.a lot of unforseen issues especially quality issues.


The new nickel might be an error hunter's dream.
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Check out my counterstamped Lincoln Cent collection:
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