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Value, Cost, and Seigniorage of US Coins by Denomination, 2023
Denomination | Total value of units produced (in millions of dollars) | Gross cost (in millions of dollars) | Seigniorage (in millions of dollars) | Seigniorage per $1 issued (dollars)
One-cent | 41.4 | 127.4 | -86.0 | -2.08
Five-cent | 70.8 | 163.4 | -92.6 | -1.31
Ten-cent | 266.6 | 141.1 | 125.5 | 0.47
Quarter-dollar | 568.4 | 264.4 | 304.0 | 0.53
Issuing a one-dollar coin yields positive seigniorage—the profit generated when the face value of a coin exceeds the unit cost of producing it—for Singapore’s government, which in turn can be used to fund such services as transportation. Some countries, such as the Netherlands, have ceased manufacturing certain coins because their production created negative seigniorage. In an economics class discussing the data in the table, one student argues that in 2023, the one-cent coin was the least financially sensible for the US to produce, while another student argues that the five-cent coin was.
Issuing a one-dollar coin yields positive seigniorage—the profit generated when the face value of a coin exceeds the unit cost of producing it—for Singapore’s government, which in turn can be used to fund such services as transportation. Some countries, such as the Netherlands, have ceased manufacturing certain coins because their production created negative seigniorage. In an economics class discussing the data in the table, one student argues that in 2023, the one-cent coin was the least financially sensible for the US to produce, while another student argues that the five-cent coin was.