Canadian Government Scraps Pennies

[slickeast]

The government website has charts of how to round up and down. http://www.budget.gc.ca/2012/themes/theme2-eng.html

It doesn't show what they will round $1.05 to

[crazypennyguy]

Bad news on the penny front for Canadian sorters.

What's going to happen to the pennies that are in circulation?

Starting in the fall, businesses will be asked to return pennies to financial institutions. The coins will be melted and the metal content recycled.

The way I see it, there are only two choices:

1) Be as appealing as you can to the tellers in any branch you can find - a hangdog look may help - and wheedle them into letting you interdict the process, particularly come fall;

2) Get out of the racket and move on (perhaps to nickels.)

The Royal Canadian Mint all but said, "All your pennies is belong to us."

[crazypennyguy]

Look like my hand my son Theodore and highroller4321 sorter was on ABC last night!
From --http://abcnews.go.com/blogs/headlines/2012/03/u-s-penny-to-be-kept-as-canada-bids-coin-farewell/

You guys get all the breaks

[jacer333]

Hmm, so are you guys saving all Canadians you run across whether they are zinc or copper now? As a midwestern U.S. sorter I don't run across a ton of them, but I may as well keep them now that they are all being melted right?

[mtalbot_ca]

Hmm, so are you guys saving all Canadians you run across whether they are zinc or copper now? As a midwestern U.S. sorter I don't run across a ton of them, but I may as well keep them now that they are all being melted right?

+1 In the same spirit, I will now hoard boxes and sort them later, without returning zincs either.

Cheers,

[CanadianCopper]

The way I see it, there are only two choices:

1) Be as appealing as you can to the tellers in any branch you can find - a hangdog look may help - and wheedle them into letting you interdict the process, particularly come fall;

2) Get out of the racket and move on (perhaps to nickels.)

The Royal Canadian Mint all but said, "All your pennies is belong to us."

I am hoping that I will be able to carry on for another 2-3 years through this approach CPG. I just have the feeling though that every financial institution is going to be more than happy to just get the pennies out of circulation and not worry about the casual client asking for a few boxes.

I am going to be watching the forum to see what crazy schemes some Canadians are able to get themselves into once the banks start pulling in all of the pennies.

[hobo finds]

The penny, with two maple leafs on one side and Queen Elizabeth II on the other, can continue to be used in payments. As the coins are gradually withdrawn from circulation, price rounding on cash transactions will be required, the government said.

From the link I posted above.

So are other canadian cents no longer good for payment? Not that any of us would cash them in!

[John_doe]

This may in turn drive up demand on U.S. coppers as well. With limited supply of Canadian, some may turn across the border for coppers. This is just a possibility obviously.

[JadeDragon]

This may in turn drive up demand on U.S. coppers as well. With limited supply of Canadian, some may turn across the border for coppers. This is just a possibility obviously.

I believe that most banks and businesses are welcoming the change. Tellers I've talked too are happy to see pennies eliminated. Why would we want US pennies?

[reddirtcoins]

The big question is, spike in price at least for a little while or not...?

[henrysmedford]

This may in turn drive up demand on U.S. coppers as well. With limited supply of Canadian, some may turn across the border for coppers. This is just a possibility obviously.

I believe that most banks and businesses are welcoming the change. Tellers I've talked too are happy to see pennies eliminated. Why would we want US pennies?

I think he was talking about penny hoarders. But you can not carry more the $5.00 over the boarder with out breaking US law so I do not see that as a problem.

[John_doe]

This may in turn drive up demand on U.S. coppers as well. With limited supply of Canadian, some may turn across the border for coppers. This is just a possibility obviously.

I believe that most banks and businesses are welcoming the change. Tellers I've talked too are happy to see pennies eliminated. Why would we want US pennies?

I think he was talking about penny hoarders. But you can not carry more the $5.00 over the boarder with out breaking US law so I do not see that as a problem.

yes I was speaking of hoarders/investors. You could probably ship them over under a copper tariff, as opposed to a monetary unit. I might be wrong here?

[henrysmedford]

]yes I was speaking of hoarders/investors. You could probably ship them over under a copper tariff, as opposed to a monetary unit. I might be wrong here?

From --http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=724

Specifically, the new regulations prohibit, with certain exceptions, the melting or treatment of all one-cent and 5-cent coins. The regulations also prohibit the unlicensed exportation of these coins, except that travelers may take up to $5 in these coins out of the country, and individuals may ship up to $100 in these coins out of the country in any one shipment for legitimate coinage and numismatic purposes. In all essential respects, these regulations are patterned after the Department of the Treasury's regulations prohibiting the exportation, melting, or treatment of silver coins between 1967 and 1969, and the regulations prohibiting the exportation, melting, or treatment of one-cent coins between 1974 and 1978.

The new regulations authorize a fine of not more than $10,000, or imprisonment of not more than five years, or both, against a person who knowingly violates the regulations. In addition, by law, any coins exported, melted, or treated in violation of the regulation shall be forfeited to the United States Government.

No one knows what "in any one shipment for legitimate coinage and numismatic purposes" is on time in you life to one person. So at " fine of not more than $10,000, or imprisonment of not more than five years, or both" no one wants to try.

[John_doe]

]yes I was speaking of hoarders/investors. You could probably ship them over under a copper tariff, as opposed to a monetary unit. I might be wrong here?

From --http://www.usmint.gov/pressroom/index.cfm?action=press_release&ID=724

Specifically, the new regulations prohibit, with certain exceptions, the melting or treatment of all one-cent and 5-cent coins. The regulations also prohibit the unlicensed exportation of these coins, except that travelers may take up to $5 in these coins out of the country, and individuals may ship up to $100 in these coins out of the country in any one shipment for legitimate coinage and numismatic purposes. In all essential respects, these regulations are patterned after the Department of the Treasury's regulations prohibiting the exportation, melting, or treatment of silver coins between 1967 and 1969, and the regulations prohibiting the exportation, melting, or treatment of one-cent coins between 1974 and 1978.

The new regulations authorize a fine of not more than $10,000, or imprisonment of not more than five years, or both, against a person who knowingly violates the regulations. In addition, by law, any coins exported, melted, or treated in violation of the regulation shall be forfeited to the United States Government.

No one knows what "in any one shipment for legitimate coinage and numismatic purposes" is on time in you life to one person. So at " fine of not more than $10,000, or imprisonment of not more than five years, or both" no one wants to try.

For gold/silver/copper to not be considered money, they sure do have a very large agenda for keeping it in the country.


surely this will be lifted with time, you can ship silver/gold out of the country no problem.

[slvrbck]

Just had to share this. Long time hand sorter here. At dairy Queen tonight after my 13 yo step daughters soccer practice whom I have also gotten interested in sorting when she looks up and says. So what do u think about Canada scrapping the cent. I've been suPer busy the last few days and somehow missed the news. I thought she was full of it.

[merchoarder]

Just had to share this. Long time hand sorter here. At dairy Queen tonight after my 13 yo step daughters soccer practice whom I have also gotten interested in sorting when she looks up and says. So what do u think about Canada scrapping the cent. I've been suPer busy the last few days and somehow missed the news. I thought she was full of it.

Thats pretty funny!! Good for her and for you for introducing her to this hobby/madness. Maybe she is a RC lurker using her smart phone at school
*Edit* I shouldn't assume your stepdaughter has a smart phone, kinda young, but seems like everyone has them these days. She could just be lurking at the library

[JobIII]

I for one, won't be selling off my Canadian pennies.

[John_doe]

I for one, won't be selling off my Canadian pennies.

I don't have many, but this is the plan I had for the ones I do have.

[frugi]

hangdog and wheedle

lol. some more crazy Canadian words...........sounds like cartoon characters......or a detective show.....lol.

sorry, i am just amused, and thought to share, I have never even heard of those words...

[hobo finds]

hangdog and wheedle wernt they in the Lion King?

[uthminsta]

I didn't see this anywhere on our site yet:
http://www.coinworld.com/articles/canada-to-stop-producing-cent-in-the-fall/
An excerpt:

The RCM will stop production this fall, and 1-cent coins will be gradually withdrawn from circulation, though finance officials have said consumers can continue to use cents indefinitely.
At some point, price rounding on cash transactions will be required. Rounding will be to the nearest 5-cent increment; payments made via electronic means will not be affected. Citing the experience in Australia and New Zealand, Canada’s Ministry of Finance does not expect the rounding to increase inflation, but said that businesses “are expected to round prices in a fair, consistent and transparent manner.”
Alex Reeves, senior manager of communications at the RCM, said that the Mint will recover the copper in all 1996 and earlier cents as well as later cents containing copper (some years several alloys have been used). Many earlier cents have already been harvested through the RCM’s profitable Alloy Recovery Program.

Lots of stuff to talk about in just those 3 paragraphs... What say you all?

EDIT: looks like my thread got merged into this one. I hadn't seen it before I posted. But what do you think will be the effect of them being "gradually withdrawn from circulation?" And what about the phrase "the Mint will recover the copper in all 1996 and earlier cents?"

[henrysmedford]

see--http://www.realcent.org/viewtopic.php?f=7&t=13469

[Morsecode]

Just watched a 50 cent roll of 2012's sell for $31 on ebay.

Will it get crazier than that anytime soon?

[uthminsta]

welcome to our newest member: HoardCanadianByTheTon

[hobo finds]

welcome to our newest member: HoardCanadianByTheTon

LOL