Federal Reserve Question

[SoggyBatteries]

Hey Guys! I've been looking around the forum for a while, but today I decided to get an account! Anyway, I need some advice. After asking a teller at my bank if they have any nickels/dimes, they told me I cleaned them out completely I asked to order a box, and the teller went to ask if it was possible. It was, and she said that the boxes come straight from the federal reserve. She said that all of the coins that come from there are brand new, though. Since halves haven't been made for circulation in a while, my question is, what do the halves come in from the federal reserve? Boxes of 500? Also, do you think that ikes could be ordered from the reserve?
I just need you guys' advice on ordering from the reserve. Thank you in advance!

 

Amazon Forum Fav 👍

A History of Mining on the Kenai Peninsula, Alaska - Grab it through Amazon!

[Diver_Down]

Hey Guys! I've been looking around the forum for a while, but today I decided to get an account! Anyway, I need some advice. After asking a teller at my bank if they have any nickels/dimes, they told me I cleaned them out completely I asked to order a box, and the teller went to ask if it was possible. It was, and she said that the boxes come straight from the federal reserve. She said that all of the coins that come from there are brand new, though. Since halves haven't been made for circulation in a while, my question is, what do the halves come in from the federal reserve? Boxes of 500? Also, do you think that ikes could be ordered from the reserve?
I just need you guys' advice on ordering from the reserve. Thank you in advance!

Welcome to TNet. Your vault/head teller is misinformed. They always think everything comes from the Fed. It is laziness on their part in not understanding the intricacies of coin distribution. Not to rehash the coin distribution model, but your coin will come from a coin courier (Brinks, Loomis, Dunbar, etc.) depending who the bank has contracted the service with. Halves will come in boxes of $500. And, yes, Ikes can be ordered, but they are not an item on the teller's order sheet. If they order a box of dollars, you will get the small golden dollars. They need to call the order and specifically ask for large dollars.

 

[SoggyBatteries]

Thanks for the welcome. I've ordered halves before, just wondering if the fed ships in bags or something. Thanks, I guess I'll order some halves at this bank and see what happens, if they're from the fed or from a carrier. The teller seemed pretty confident they were from the reserve, but you never know.

 

[enamel7]

Thanks for the welcome. I've ordered halves before, just wondering if the fed ships in bags or something. Thanks, I guess I'll order some halves at this bank and see what happens, if they're from the fed or from a carrier. The teller seemed pretty confident they were from the reserve, but you never know.

Like DD said, they don't come the Fed. Confidence and ignorance from the teller isn't a good combination.

 

[pgfhgs]

the only thing the fed would make of value anymore is the box

 

[Liu21]

the only thing the fed would make of value anymore is the box

No no no... The bags!!! and After SHTF a few years the stacks of pretty TP..

 

[Liu21]

Im pretty sure the FEDs store their coins in Bags, when it is given to the Armor guys, it is then processed, counted, rolled, and boxed. from there it goes out to the banks... THe only thing that comes direct from the FED are Ikes...

 

[Diver_Down]

The teller seemed pretty confident they were from the reserve, but you never know.

In this case, I do know. I'm 100% confident that I would wager my entire silver stack to the contrary.

 

[enamel7]

In this case, I do know. I'm 100% confident that I would wager my entire silver stack to the contrary.

+1!!!!

 

[LooseChange]

It has been discussed many times that the teller could very well be right about coins coming from the FED.

Most consumer CUs and many local/small banks do not contract with Brinks/Loomis/Etc to manage coin. If they do not have business customers who need coin service, their interaction with coin is mostly to deposit the bagged coin that their customers deposit. For that reason, they have no contracts with Brinks for coin.

These banks/CUs deposit bagged coin to either the FED (or to a correspondent bank). And, they do order rolled coin from the FED (or to a correspondent bank). When they do that (in either case - FED or correspondent bank), it is Brinks/Loomis/Garda/Etc who pick up the coin, validate the count, store the coin, roll the coin, box the coin, etc. That is because Brinks/Loomis/Garda/Etc are sub contractors of either the FED, or of the correspondent bank.

When a bank orders coin from the FED and it gets delivered by Brinks, then, as far as any accounting goes, that bank got coin from the FED. Before the bank had it delivered by Brinks, the FED owned it but was just storing it at the Brinks facility.

According to the FED www site http://www.federalreserve.gov/paymentsystems/coin_about.htm:

The Federal Reserve also distributes coin through depository institutions. The thirty Federal Reserve Bank cash offices provide cash services to approximately 9,200 banks, savings and loans, and credit unions in the United States. The remaining depository institutions obtain currency and coin from correspondent banks rather than directly from the Federal Reserve.

The Reserve Banks distribute new and circulated coin to depository institutions to meet the public's demand. While the Reserve Banks store some coin in their vaults, they also contract with coin terminals to store, process, and distribute coin on behalf of the Federal Reserve. Armored carrier companies generally operate the coin terminals; the coin terminals have improved the efficiency of the coin-distribution system.

 

[Omega]

Here we go again

 

[LooseChange]

When professionals in the industry say that they get coin from the FED and when the FED says in their published literature that they provide coin to CUs and banks, how can hobbyists whose exposure is limited to hearsay accounts and presumed inference within a limited area be more credible?

Research the FED's role (not roll) in coins. There is a lot to be learned. For example . . .

... Because there is almost no transactional demand, Reserve Bank inventories of half-dollar coins also increase each year. Since 2001, Reserve Banks' inventories have increased by 110 million pieces even though the Reserve Banks have only ordered 24 million pieces over that time period ...

Halves are leaking into the FED stockpiles faster than they are being minted.

 

[Liu21]

I wish i can just go to the FED, and pick out a Bag of halves or better yet a bag of ikes....

 

[Diver_Down]

When professionals in the industry say that they get coin from the FED and when the FED says in their published literature that they provide coin to CUs and banks, how can hobbyists whose exposure is limited to hearsay accounts and presumed inference within a limited area be more credible?

Research the FED's role (not roll) in coins. There is a lot to be learned. For example . . .



Halves are leaking into the FED stockpiles faster than they are being minted.

LooseChange- The published literature is written with the laymen in mind. Yes, the Federal Reserve does provide coin to CUs and bank. But they do not physically drive the coin to bank A when bank A calls. The Federal Reserve sources this coin from their Reserve Vaults which are actually Brinks and Loomis in a region. They are required to maintain a set inventory. If they exceed their inventory, then the excess is returned to the nearest Branch. If they need to increase their inventory, then the couriers source it from the nearest Branch. Some banks have contracts with the couriers that specify how and when coin/currency is delivered. Other banks do not have a negotiated contract and call when needed.

My source is directly from when I took a private tour of the Federal Reserve branch in Jacksonville. I've encouraged others in the past to take a tour. You will learn a lot.

 

[LooseChange]

LooseChange- The published literature is written with the laymen in mind. Yes, the Federal Reserve does provide coin to CUs and bank. But they do not physically drive the coin to bank A when bank A calls. The Federal Reserve sources this coin from their Reserve Vaults which are actually Brinks and Loomis in a region. They are required to maintain a set inventory. If they exceed their inventory, then the excess is returned to the nearest Branch. If they need to increase their inventory, then the couriers source it from the nearest Branch. Some banks have contracts with the couriers that specify how and when coin/currency is delivered. Other banks do not have a negotiated contract and call when needed.

My source is directly from when I took a private tour of the Federal Reserve branch in Jacksonville. I've encouraged others in the past to take a tour. You will learn a lot.

We are absolutely on the same page here. In your scenario, Brinks is an agent of the Federal Reserve bank. Some Brinks locations are indeed Federal Reserve coin terminals in addition to being an armored transport.

Note however that, according to Louise L. Roseman, Director, Division of Reserve Bank Operations and Payment Systems, coin distribution is not 100% outsourced to armored transport companies. At least 12% of the coin distribution activity is not outsourced.

...Today, 174 coin terminals store about 37 percent of the Federal Reserve's coin inventory volume, but account for about 88 percent of Reserve Bank daily distributional activity...

Obviously, the FED does not drive a box of nickels to Wells Fargo when Buffalo Boy gets the itch to hunt speared bison. But, banks do order and deposit coin to the FED - via armored transport. In most cases, Brinks etal handles all of the logistics. But, in some cases, Brinks (or similar) is just the transport.

I suppose it is like when I buy an Ab Roller on Amazon. FedEx brings it to me, but I still bought it from Amazon - not FedEx. Maybe FedEx picks it up from Suzanne Summers' home directly and brings it to me (without ever hitting an Amazon warehouse), but I still bought it from Amazon.

 

[Avago]

I suppose it is like when I buy an Ab Roller on Amazon. FedEx brings it to me, but I still bought it from Amazon - not FedEx. Maybe FedEx picks it up from Suzanne Summers' home directly and brings it to me (without ever hitting an Amazon warehouse), but I still bought it from Amazon.

I think that's an excellent analogy. It's about who owns the coin (FED or another bank), whose balance sheet it's on. The couriers just deliver it from A to B. What concerns me is this:

... Because there is almost no transactional demand, Reserve Bank inventories of half-dollar coins also increase each year. Since 2001, Reserve Banks' inventories have increased by 110 million pieces even though the Reserve Banks have only ordered 24 million pieces over that time period ...

Halves are leaking into the FED stockpiles faster than they are being minted.

What this means to ME is that more silver is being shipped to and locked up at the FED and us CRHers are searching and re-searching fewer coins. It sounds like we all need to increase our volume about 1000x to free up some of that backup!

 

[fistfulladirt]

Good stuff!

 

[worldtalker]

Soggy Batteries...why does this keep going through my mind.


GOD Bless

Chris

 

[lovewiibrew]

What this means to ME is that more silver is being shipped to and locked up at the FED and us CRHers are searching and re-searching fewer coins. It sounds like we all need to increase our volume about 1000x to free up some of that backup!

... Because there is almost no transactional demand, Reserve Bank inventories of half-dollar coins also increase each year. Since 2001, Reserve Banks' inventories have increased by 110 million pieces even though the Reserve Banks have only ordered 24 million pieces over that time period ...

I would also wager that the increase of the Reserve Banks' half dollar inventories are in part, a result of the increase in the number of hunters in the last few years. Some of us dump $500 or $1000 worth and I think most banks send that off fairly quickly.

 

[el padron]

On the contrary, Suzanne Somers outsources all the production of her A.B. roller"s to China. When you buy an AB roller from Suzanne Somers on Amazon, a Taiwanese supplier out of Korea acknowledges the order of raw material, and then in tirn ships them to Taiwan.
There they are prepared for the Malaysian component producers. The packaging is printed in Manila, having already been shipped to Cambodia for final inspection.
Upon final assembly in Indonesia they are carefully shipped through the straits of Sumatra by freighter and onto the warehouse in Toronto.........