Canadian Penny - Soon to be DOA in 2011

[Copper Catcher]

Penny dropped


The Canadian penny is no more worth its value.

A Canadian Senate committee has urged the government to remove the penny from circulation, saying the cost of producing it exceeds its financial value.

“The fact is that the penny is not of much use anymore,” committee chairperson Richard Neufeld said. There are roughly 22 billion pennies in circulation, or about 600 for each Canadian citizen.

A 2005 study found that getting rid of the penny would save more than Canadian $131million (US $130 m) in the cost of producing, storing and transporting the coins.

The committee recommended the coins be withdrawn during the next two years. “Most of us know the penny as little more than a nuisance that slows down the line at grocery stores, and ends up under our couches or in drawers,” Neufeld said.

Source: http://www.downtoearth.org.in/node/2804

[Corsair]

The way I understand it, this is just a recommendation by members of the Senate, is it not? There has been no hard law or order to remove the penny from circulation yet, correct?

[Copper Catcher]

You are correct... However there is no opposition to this at all and all the media reports are for doing away with the penny in Canada.

There appears to be no strong attachment to the coin unlike the story behind Lincoln as well as the lobbyist influence from the zinc and copper industry.

[uthminsta]

Okay. So let's say it IS TRUE in Canada. Let's say the 2011 is the final Canadian cent. Wanna place bets on how long the US keeps it up before they follow suit?

[Corsair]

Okay. So let's say it IS TRUE in Canada. Let's say the 2011 is the final Canadian cent. Wanna place bets on how long the US keeps it up before they follow suit?

I think CC has a point. The US is so entangled with lobbyists that it would be nearly impossible for them to just ax the cent. Plus, there is a lot of love in the nation for good ole Abe. If Canada kills the penny, I would be willing to be the US's response would be another composition change.

[henrysmedford]

Looks like you can order the 2011 in a mint set at http://www.mint.ca/store/coin/uncirculated-set-2011-prod1050005?pCatId=cat410002 Joe

[toomuchcopper]

Lets say that canada does indeed get rid of the penny. What does that then do to the value of the copper canadian penny? more value? or less?
In my opinion canadian copper was a good investment for the same reasons the US copper penny is a good investment as far as the minimal downside to the investment as it is guarranteed to always be worth at least face value. If the penny is eliminated, does it then become not legal tender anymore? does the govt. call in all the pennies as a one time deal where for a period of time you can cash them in and then after that they are no longer of monetary value? I would think that if the govt. eliminates the making of the penny they will have to eventually pull them from circulation as no one will be using them anymore for transactions. I think the approach the govt. takes will have a lot to do with how the whole thing will come down, I for one will be watching closely. This may be a valuable lesson for us all, in many ways.

[Tourney64]

You will see massive dumping of the Canadian pennies in the US if Canada stops production and US doesn't.

[JadeDragon]

There is no way the Canadians will demonetize the penny (make it worthless). Stop producing it - absolutely that is going to happen. Senator Neufield is from the governing Conservatives and he is not just spouting off without some direction from PM Harper's office. All Canadian money every produced still has value but if a bank sees a discontinued coin/bill they will turn it in for destruction. That is how they pulled the dollar and two dollar bills out of circulation a few years ago - every time they were turned into the bank off to the shredders they went.

So if you have a lot of Canadian pennies stored expect them to get a lot rarer one of these days.

The biggest challenge will be that Canadian and US coins circulate on both sides of the border in partial interchange. The elimination of the Canadian penny would therefore put pressure on the Americans to ax the Lincoln cent.

[frugalcanuck]

Canada to put pressure on America? I dont think the US knows what that is.

[henrysmedford]

Franklin got his 2011 today!