Group 1 - The value of the 5 yen coin's raw materials has exceeded its face value, while the 10 yen coin's raw materials are close to 90% of its face value due to rising copper prices [2][3] - The composition of the 5 yen coin includes 60% to 70% copper and 30% to 40% zinc, while the 10 yen coin consists of 95% copper, 3% to 4% zinc, and 1% to 2% tin [3][4] - The current market price for the raw materials of the 5 yen coin is 5.4 yen and for the 10 yen coin is 8.7 yen as of December 15 [3][4] Group 2 - The increase in raw material prices is attributed to a global trend, with the U.S. Mint halting the production of the 1 cent coin due to high manufacturing costs [5] - The trend towards cashless payments is also observed in Japan, with a significant decrease in cash usage for transactions under 1000 yen over the past decade [5][7] - The Japanese Ministry of Finance acknowledges the necessity of cash for those unable to use cashless payment methods, but the environment for currency issuance has changed significantly [7]

Core Viewpoint - The value of Japanese yen coins is increasing due to rising raw material prices, particularly copper, which has reached historical highs, leading to the raw material value of the 5 yen coin exceeding its face value and the 10 yen coin approaching 90% of its face value [2][4]. Group 1: Raw Material Composition and Prices - The 5 yen coin consists of 60% to 70% copper and 30% to 40% zinc, while the 10 yen coin is made up of 95% copper, 3% to 4% zinc, and 1% to 2% tin [4][5]. - As of December 15, the raw material prices are estimated at 5.4 yen for the 5 yen coin and 8.7 yen for the 10 yen coin based on domestic market prices [4][5]. Group 2: Global Trends and Implications - The increase in raw material prices is a global phenomenon, with the U.S. Mint halting the production of the 1 cent coin due to high manufacturing costs, which are nearly four times its face value [6]. - The trend towards cashless payments is growing, with a significant decrease in cash usage for transactions under 1000 yen in Japan, dropping from 89.2% to 61.6% over the past decade [6]. Group 3: Currency Production and Future Considerations - The Japanese Ministry of Finance has stated that cash remains essential for those unable to use cashless payment methods, and there are no plans to stop producing circulating currency [8]. - The manufacturing environment for currency has changed significantly, with no new production of 1 yen and 5 yen coins for circulation since 2016 and 2021, respectively, indicating a need to reassess the value of currency [8].