Originally posted on Downies Blog:
In a major break with tradition, Canada is doing away with the humble penny. Citing cost of production and weakened buying power due to inflation, the Canadian Government is to phase the 1 cent piece out of circulation from February 2013. 2012 is the last year the penny will be struck for circulation and the change is causing quite a stir amongst numismatists, for a number of reasons. It’s also leading some to speculate that the Australian 5 cent piece could be next.
A coin with a fascinating history, the Canadian penny denomination was, from 1858 to 1908, struck in England and shipped to Canada for use in circulation. The penny would ultimately become one of Canada’s first domestically produced coins, with the recently opened Royal Canadian Mint first striking the denomination in 1908. With several dates from the penny series attaining notoriety due to interesting background events or great rarity, this denomination has gained a significant following worldwide. For example, a 1923 King George V penny in Brilliant, Uncirculated condition could potentially realise upwards of $2,000 at auction, signifying interest in the history of the Canadian penny.