Stop making coins.

SilverQuest · Jul 17, 2012

Wonder what would happen if the government decided to not make coins for a year or 2.....

Surely the supply out there isn't getting that damaged to cause a shortage...

Might save the government money..

Just some thoughts I had while reading about other CRHers running into a surplus of 2012 coins.

Any thoughts

ihittheskislopes · Jul 17, 2012

Whens the last time the goverment stoped mass printing of money?

baddbluff · Jul 17, 2012

They WILL STOP making coins, and it won't be long. Canada will stop making cents next year. Some countries already are countless (Sweden, I believe

) if you don't have a Ryedale & aren't hoarding cents, better start, or you will miss the boat.

PhattyB · Jul 17, 2012

There is a difference, the actual government makes coins, and the Federal Reserve makes bills. When new coins are made, it's supposed to be at a rate where old coinage is getting damaged or lost.. Damaged pieces do in-fact get culled out of circulation.

I don't think we have an over-abundance of coin, but can't say the same for paper!

baddbluff · Jul 17, 2012

COIN-LESS not countless

SilverQuest · Jul 17, 2012

Why hoard the coins? For melt value? I understand hoarding silver.

Think copper prices will inflate enough they will allow them to be melted?

canaboy123 · Jul 17, 2012

baddbluff said:
They WILL STOP making coins, and it won't be long. Canada will stop making cents next year. Some countries already are countless (Sweden, I believe) if you don't have a Ryedale & aren't hoarding cents, better start, or you will miss the boat.

They made the last penny back in April, starting in the fall every penny a bank gets is
Going to be sent back for destruction.

BuffaloBoy · Jul 17, 2012

no new coins means no more solid dated boxes, i'm up for it!
hh
buff

Generic_Lad · Jul 17, 2012

Copper prices are already at high enough prices to allow the free market to melt copper cents and make a profit. Unfortunately the government has banned the export of cents and the domestic melting of them.

With the exception of the small dollars, the nickel, and the cent, the US government makes a healthy profit on coins. For example, a quarter has less than 5 cents worth of metal, if we assume that the production cost for a quarter is 3 cents, that means the government makes 17 cents on every quarter they make.

TimZim · Jul 17, 2012

I still don't know why there is halfs anyway; Use less we are the only nuts that want them right?? And ikes?? Why are there ikes who wants them?? no one 2 dollar bills

again why

sagthegreat · Jul 17, 2012

lolz, when does the government stop making pennies, i cant wait, finally melt the copper pennies i have been saving for 6 years (im 15)

sagittarius98 · Jul 17, 2012

Generic_Lad said:
With the exception of the small dollars, the nickel, and the cent, the US government makes a healthy profit on coins.

The "gold dollar" cost 35 cents to make (metal and production costs).

sagittarius98 · Jul 17, 2012

TimZim said:
I still don't know why there is halfs anyway; Use less we are the only nuts that want them right?? And ikes?? Why are there ikes who wants them?? no one 2 dollar bills again why

Ikes are no longer made, but no one wants the small dollars either.

MIhunter · Jul 18, 2012

The US Mint makes coins for circulation and sells them at face value to the FED RESERVE to be sold to the banks. Currently the Mint only produces 4 coins for general circulation, penny, nickel, dime and quarter. The penny and the nickel are losers and the dime and quarter are winners in terms of profits for the Mint. Overall the Mint makes a profit for the US Treasury even when you only consider the circulation coin business. In addition the Mint makes proof and mint sets, commeratives, bullion coins and NIFCs that are sold well above face value.
The overall profit on circulating coins is low because of the rising costs of production and the absence of higher value coins ($1/2, $1, $2) that would bring a greater profit.
If the US Gov't stopped making $1 bills and thus there was a demand for dollar coins the profits for the Mint would be in the hundreds of millions.

Therefore my solution to help boost the profitability of the US Mint:

Stop making pennies for general distribution, only include them in mint and proof sets. Cash transactions will be round to the nearist 5 cents
Change the nickel, dime and quarter to nickel plated steel
Stop making $1 and $2 bills
Introduce a $2 coin

Not that the Govt is in the mood for descive action

baddbluff · Jul 18, 2012

MIhunter said:
The US Mint makes coins for circulation and sells them at face value to the FED RESERVE to be sold to the banks. Currently the Mint only produces 4 coins for general circulation, penny, nickel, dime and quarter. The penny and the nickel are losers and the dime and quarter are winners in terms of profits for the Mint. Overall the Mint makes a profit for the US Treasury even when you only consider the circulation coin business. In addition the Mint makes proof and mint sets, commeratives, bullion coins and NIFCs that are sold well above face value.
The overall profit on circulating coins is low because of the rising costs of production and the absence of higher value coins ($1/2, $1, $2) that would bring a greater profit.
If the US Gov't stopped making $1 bills and thus there was a demand for dollar coins the profits for the Mint would be in the hundreds of millions.

Therefore my solution to help boost the profitability of the US Mint:

Stop making pennies for general distribution, only include them in mint and proof sets. Cash transactions will be round to the nearist 5 cents
Change the nickel, dime and quarter to nickel plated steel
Stop making $1 and $2 bills
Introduce a $2 coin

Not that the Govt is in the mood for descive action

Government agencies aren't in the business of making money, even when "making money." At least not under this administration. If he could, Obama would bring back the half cent, and he'd make it of pure copper. Then he would create an agency to regulate them and another to make sure we wouldn't hoard them. I'm hoping when Romney is elected, he will abolish the cent & lift the melt ban (maybe in his second term so I can save up more!)