Goodbye to the Canadian Penny

The Canadian penny passed away quietly on Feb. 4, 2013, when the Royal Canadian Mint stopped distributing the copper-colored coin.

This change had been expected since March 29, 2012, when federal Finance Minister James Flaherty announced in the budget that his government would phase out Canada’s smallest currency denomination.

The penny’s history dates back to 1858 when Canada adopted a decimal system for its currency. Initially minted at the Royal Mint in Great Britain, it featured Queen Victoria on the obverse (or “heads”) side and a vine of maple leaves on the reverse (or “tails”) side.

This penny is worth over $400,000. The 1936 Canadian dot cent has a small, distinctive dot below the date to indicate it actually was made by the Royal Canadian Mint in early 1937, due to the dies prepared for 1937 minting going out of date because of Edward VIII’s abdication in December 1936. Only three 1936 dot cents are known to exist. (Heritage Auctions/ )

Dominion of Canada coins first appeared in 1870, but bronze pennies didn’t join until 1876.

Moved to Canada in 1908

Penny production shifted to Canada in 1908 with the opening of the Ottawa branch of the Royal Mint. Countess Grey, who was married to Canada’s governor general at that time, struck the first penny during its official opening on Jan. 2. Up until 1997, at least 95.5 percent copper made up its composition.

From1920 to1936, two maple leaves decorated the reverse side design; however, this changed in1937 with a new maple twig design created by English artist George Edward Kruger Gray, whose initials KG appear near the lower right of that twig.

For Canada’s centennial year in1967, the penny’s reverse showcased a rock dove. Since1858, five different designs have been used on its reverse side including one period between1911 and1920when “Canada” was added alongside the original vine design. The obverse side has always depicted a likeness of whichever monarch reigned at that time.

Afterthe penny Price rounding officially begins Feb.4though businesses may still acceptthe coin. Accordingto Canada’s Currency Act, you can only spend25 penniesat once. You can always roll up more and bring them tothe bank. Pricesroundup, anddown. Sothe$1.01 or$1.02 would round downto$1 while$1.03,$1.04 round uptothe $1.05. Roundingonlytakesplaceafter taxeshavebeenadded. Ifyoucan’tstandthat, use yourcreditordebitcard. You willbe chargedtotheexactcent.

Between1982and1996, the shapeofthe pennytookon an unusual12-sided forminstead ofbeing round.

In1997, the compositionchangedto98.4 percent zincwithcopperplating making upthe rest. Since2000, it’s been94percentsteel.

Last penny mintedin May

In2006, a pivotalyearfor Canadian pennies, saw peakproductionwithover1.26billion minted thatyear. The lastone rolled offthe pressin Winnipegon May4 ,2012.

Thecauseofthe penny’s demise likelycamefromits falling purchasingpower as inflation hit hard. An1870 pennynowwould be valuedaround31cents adjustedfor inflation. Initsfinal year, it costgovernment about1.6 centstoproduce eachcoin. Withthe penny gone, the government estimates yearly savings around$11 million.

The Canadian penny is precededbyothercoins like Australian(1911-1964), New Zealand(1940-1989) and Irish(1928-2000)pennies. Itis survivedbythe Americanpeny(1793-)and Britishcoinageits royalancestors dating backtothe seventh century.

Jim Flaherty, ministryoffinance, watches asthelast few penniesare struckin Canadaatthe Royal Canadian Mintin Winnipeg, on May4 ,2012.(John Woods/ )

The others left inthe Canadiancoin familywill surely noticeits absence as they’re expectedtobecome more soughtafter. Additionally, the28 percentof Canadianspolled by Angus Reid backin January2013 expressed disagreementwithremovingthe penny from circulation.

Canadians withspare penniesare encouragedto visit banksandotherfinancial institutionsso theircoinscan beremoved from circulationandrecycled. Butholdersnotquite readytosay goodbye tothe dear coincanstill use it-though notalleverybusinessmayacceptthem.

Acceptanceisdecidedbyindividualbusinesses, but governmentrecommendation urges rounding total billsneartothe closest$.05 or$.10. The valueofthepenny will remainvalid indefinitely.

Instead offlowers, directdonations could bemade inpennies towards Canadiancharities.

Condolences can be sharedonlineinthecomments sectionbelow.

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