1974 Aluminum Cent: History of a Failed Minting Experiment

In 1974, in an attempt to combat the rising expenses of copper, the US Mint started an ambitious experiment to produce new pennies out of aluminum. Another brief but momentous period of numismatic history passed, and it was characterized by political pressure, intrigue, and eventual failure. 

The 1974 aluminum penny, one of the most elusive and contentious coins ever created, never entered circulation notwithstanding the government's best attempts. This coin as the most illustrative example of what might have been in the history of American currency is a favored option to see and obtain, but is it even possible? How to identify these coins? Let us check.

When? The Economic Context

Not long ago, at the beginning of the 1970s, the United States had to meet serious financial issues, inflation, and growing production rates for common goods to be more precise. The price of copper, a crucial component used for producing pennies, increased dramatically, which eventually made one-cent coins more expensive than it is stated on their face value. 

By 1973, the cost of making an aluminum 1974 penny had almost doubled, which was insane for sure! This is why it was inevitable for the government to investigate all the possible alternatives in response to these economic demands. Hence, in 1974, the aluminum penny experiment commenced. 

Why? Initial Proposal

Although we have briefly covered the reason why the 1974 penny aluminum was released, let us delve a bit deeper into the problem of cost formation. In 1971, some years before the 1987 quarters were minted, the Bretton Woods system's collapse was followed by global inflation, which detached the US dollar from gold and led to a dramatic rise in commodity prices, especially those of metals like copper. 

Furthermore, the rates were eventually raised by a combination of major supply struggles and the growing demand for copper in manufacturing processes. Political unrest in nations that produce copper, like Chile, put additional strain on the supply chain. The cost of copper, like in the 1963 D Lincoln pennies, for producing coins was far more than it could initially be due to these reasons, which led the US Mint to look at aluminum as a decent alternative.

NB: Aluminum was chosen due to its inexpensive, lightweight, and corrosion-resistant nature. The penny's conventional copper and zinc composition was to be swapped out for a 96% aluminum alloy, which, at first, was seen to be a feasible way to preserve the penny's utility in circulation while saving millions of dollars a year.

How? Production of the 1974 Aluminium Penny

First, it is important to note how many instances were produced under this initiative. The Philadelphia Mint struck over 1.6 million experimental coins, but none of them were ever formally put into circulation.

To increase the endurance of a coin, trace metals made up the remaining 4% of the 96% aluminum penny. Compared to its conventional copper equivalent, which weighed 3.11 grams, it was substantially lighter at just 0.93 grams. The aluminum cent's appearance was identical, though, to that of the standard Lincoln cent, with the Lincoln Memorial on the reverse and Abraham Lincoln's face on the obverse.

While the aluminum penny was praised for its affordability and resilience, there was no real-life application of it. Its appearance was too similar to other coins, such as dimes, and its low weight rendered it prone to being misplaced, which raised concerns in terms of confusion in circulation. The coin's introduction was problematic since the very beginning, which was further exacerbated by potential health dangers difficult to detect.

Results? Rejection

The idea failed. The 1974 aluminum penny was notorious because of broad rejection coming from several fronts. The copper industry was the main source of resistance thanks to the financial impact it would have on their operations. Moreover, the lightweight aluminum coins, according to congressional leaders, might cause logistical obstacles, including malfunctions with vending machines and coin-operated devices that were set up for copper-based coinage.

Medical experts have expressed concern about the possibility that aluminum coins could be hard to spot on X-rays and could be harmful if ingested. Soon after, as a response to these growing concerns, the US Mint suspended the program and all but a small number of the coins were directed to be melted down. However, a small number of these relics survived because it was never put into circulation. By the way, they are still illegal to possess and are highly sought after by collectors these days.

Pricing? 1974 Aluminum Penny Value​

Only a few of the 1974 aluminum pennies escaped the fate of the melting process. These coins are exceptionally uncommon and precious to collectors because of their unique history and rarity, too. However, their status is still in a state of legal uncertainty because the US government has declared them unlawful to possess and has never approved their release as well.

Nevertheless, the currency has been offered for sale, and in 2014, the US government decided to recover a specimen that was scheduled to go up for auction with an estimated value of $250,000.

Should you wish to know the relevant information about this coin, receive news, and understand which numismatic features to look for, do not hesitate to install the Coin ID Scanner app and start your coin-collecting journey as soon as possible. 

Sources: 

1. https://www.pcgs.com/coinfacts/coin/1974-1c-aluminum/508060 

2. https://www.usmint.gov/news/inside-the-mint/1974-experimental-aluminum-cent-project