1936 dot cent

The rare 1936 dot cent is as notable in Canadian numismatics as the 50-cent piece of 1921. There were four minted specimens of this coin, produced with the dot to show they were made in 1937 while the mint was waiting for new dies due to a delay caused by the abdication of King Edward VIII and the need to create new dies for his successor, George VI. The last one sold at Heritage Auctions in January 2010 for over US$400,000 before taxes.^[9] It was graded specimen 66 by the Professional Coin Grading Service. Three known examples are in private collections, and the fourth is not in the Ottawa Currency Museum; it is one of few gaps in the museum's collection.

1947 Maple Leaf issue

In contrast to the 1936 issues, the 1948 cents dated 1947 and specially marked are very common. These 1947 Maple Leaf coins were made while the dies were being changed to show George VI was no longer Emperor of India, as the title of "Emperor of India" was dropped from the titles of the Crown per article 7.2 of the Parliament of the United Kingdom's Indian Independence Act 1947.^{[citation needed]}

Composition throughout history

Between 2000 and the end of the penny's distribution in 2012, the 1-cent coin was produced using either the copper-plated steel or copper-plated zinc compositions.^[15]

Based on technical specifications provided by the Mint Act, only pennies produced from 1982 to their discontinuation in 2013 are still legally "circulation coins".^[16]

From May 2006 to October 2008, all circulation Canadian pennies from 1942 to 1996 had a melt value of over CA$0.02 based on the increasing spot price of copper in the commodity markets. The break-even price for a 2.8 g solid copper penny is US$1.61/lb., with prices during this period reaching as high as US$4/lb.^[17]

Abolition

There had been repeated debate about ceasing production of the penny because of the cost of producing it and a perceived lack of usefulness. In mid-2010 the Standing Senate Committee on National Finance began a study on the future of the one-cent coin.^[18] On December 14, 2010, the Senate finance committee recommended^[19] the penny be removed from circulation, arguing that a century of inflation had eroded the value and usefulness of the one-cent piece. A 2007 survey indicated that 37 percent of Canadians used pennies, but the government continued to produce about 816 million pennies per year, equal to 24 pennies per Canadian.^[20] The Royal Canadian Mint had been forced to produce large numbers of pennies because they disappeared from circulation, as people hoarded these coins or simply avoided using them. In 2011 the Royal Canadian Mint had minted 1.1 billion pennies, more than doubling the 2010 production number of 486.2 million pennies.^[21] In late 2010, finance committee members of the Canadian Senate estimated that the average Canadian had as many as 600 pennies hoarded away, taken out of circulation.^[19]

On March 29, 2012, the federal government announced in its budget^[22] that it would withdraw the penny from circulation in the fall of 2012. The budget announcement eliminating the penny cited the cost of producing it at 1.6 cents.^[22][23] The final penny was minted at the RCM's Winnipeg, Manitoba, plant on the morning of May 4, 2012,^[23] and was later entrusted to the Bank of Canada Museum in Ottawa.^[24][25][26] Existing pennies will remain legal tender indefinitely;^[27] however, pennies were withdrawn from circulation on February 4, 2013.^[23][28] The Currency Act says that "A payment in coins [...] is a legal tender for no more than [...] twenty-five cents if the denomination is one cent."^[29]

On February 4, 2013, the Mint began melting down the estimated 35 billion pennies that were in circulation.^[30] On the same day, Google celebrated the beginning of the end for the Canadian penny with a Google Doodle.^[31]

Cash transactions are now rounded to the nearest multiple of 5 cents.^[32] The rounding is not done on individual items but on the total bill of sale, with totals being rounded to the nearest multiple of 5, i.e., totals ending in 1 or 2 round down to 0, totals ending in 3, 4, 6, or 7 round to 5, and totals ending in 8 or 9 round up to 10.

To honour the penny, the Royal Canadian Mint released several silver and gold coins and collectibles on their website,^[23] including a miniature gold coin,^[33] a gold-plated silver coin,^[34] a five-ounce silver coin,^[35] and a five-coin set of silver coins.^{[citation needed]}