Cost of making the penny pinches Mint

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Penny for your thoughts?

Better make that a nickel. Or better yet, a dime.

The cost of minting a penny is now more expensive than the coin is worth, once again raising the possibility that it is headed toward extinction.

Pennies cost about 1.7 cents each to produce, while nickels cost about 8.3 cents, according to the U.S. Mint.

The problem is that the cost of metals has shot to record levels, and the price of the zinc, copper and nickel the coins contain now outstrips their face value.

Now, the Mint is preparing a report to Congress on whether American coinage should be changed.

"We intend to fully examine and thoroughly study it to evaluate and assess its findings and recommendations," said Marvin Fast, spokesman for the Senate banking committee.

The U.S. Mint also is trying to prevent speculators from melting pennies down to sell the metal for scrap.

Last month, the government coin maker published an interim regulation to cut down on export and melting of pennies and nickels.

"We are taking this action because the nation needs its coinage for commerce," said U.S. Mint Director Ed Moy. "We don't want to see our pennies and nickels melted down so a few individuals can take advantage of the American taxpayer. Replacing these coins would be an enormous cost to taxpayers."