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 Replies: 20 / Views: 3,034 |
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Pillar of the Community
United States
1667 Posts |
Never gonna happen. Cash is always going to be needed for something, and it's never going to be done away with.
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Rest in Peace
United States
18456 Posts |
Quote:Just a few days ago at the bagel shop a person got a 2005 westward nickel with the bison, he saw it and said "wow it's a Buffalo nickel, they haven't made these for decades, he didn't even look at the date", I just ignored him . I'm surprised you didn't you didn't throw your Bagel at him .  |
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Valued Member
United States
221 Posts |
With hfjacinto,  . Picture the average person who would be researching numismatics, purchasing coins through online channels, and posting on web forums. Perhaps we as a group (Full disclosure, I use cash and credit cards quite a bit, platforms like PayPal almost never, though.) are predisposed to be more comfortable with cashless transactions, as are the people with whom they interact. The effect of such an environment can be an echo chamber where perceptions are confirmed by interactions with people who shop and sell things the same way. I noticed this disconnect in opinion over the use of cash early on in the COVID mess. I started seeing opinion pieces written by tech savvy folks seeming to celebrate the fact that the pandemic would finally end use of cash and all the distasteful business they associated with it. At the same time, businesses I frequented were scrounging for coins to make change in cash transactions, which were critical to their operations. I also bought things from people who preferred to see cold, hard cash, and they certainly were not thieves, drug dealers, or human traffickers. My experiences and those of the cashless proponents probably don't match well. Who's right then? Can we entirely trust our own experiences, especially if those experiences aren't more diverse? That's why for me the facts and figures, like what hfjacinto posted, trump most other arguments. |
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Pillar of the Community
United States
850 Posts |
I am glad they have a strict limit of 2 commemorative coins they can make per year. Now this year is interesting as they were able to get the Morgan and Peace dollars thru but it sounds like its a continuation. So I guess there are some loopholes to go around this rule |
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Pillar of the Community
United States
1613 Posts |
Both federal notes and coin hold a perceived value. Meaning, they are worth nothing more than the word of several suits sitting around an oak table say it is. Known as full "faith". As for coin, both the cent and nickel far exceed a real value in their metal content based on a marketable. Even in today's digital world commercial transactions would need to be conducted should a failure in electrical power or servers being off-line. Factor in the growing ransomeware and other computer hacks and it becomes clear that a cashless society is not happening.
ANA member - PAN Member - BCCS Member There are no problems only solutions - the late, great John Lennon
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CCF Master Historian of USA Commemoratives
 United States
12293 Posts |
It's not so much about the quantity of the coins struck as it is about the seigniorage and net income derived from the coins produced.
For 2020, the Mint had a net income of $549.9 million from circulating coinage, $46.2 from bullion and just $12.4 million from numismatic/collector products (90.4% / 7.6% / 2.0%, respectively).
In 2019, the overall numbers were down, but the percentage split was definitely still skewed: circulation coinage, $318.3 million, bullion $5.6 million and numismatic/collector products $1.7 million (97.8% / 1.7% / 0.5%, respectively).
In 2018, the numbers were: circulation coinage, $321.1 million, bullion $7.0 million and numismatic/collector products ($15.3) million - a loss - (97.9% / 2.1% / (4.7%), respectively).
So, while numismatic/collector sales have become a bigger component of the Mint's overall revenue pie, they do not yet make up a significant piece. The Mint is most definitely not shifting to a model driven by collector coins any time soon.
Collecting history one coin or medal at a time! (c) commems. All rights reserved.
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CCF Master Historian of USA Commemoratives
United States
12293 Posts |
Quote:
...the Royal Canadian Mint, with hundreds of issues per year of collector "coins"... The Canadian Mint has significantly reduced the number of collector coins it issues currently. While it's still 100+ for the year, it is no longer the 300+ it was a few years back. Collecting history one coin or medal at a time! (c) commems. All rights reserved.
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Pillar of the Community
United States
1913 Posts |
Quote:
Do you all realize that the mint produces billions of coins for circulation?
2021 (as of 8/2021) - 8.86 billion
2020 - 14.74 billion
2019 -11.94 billion
2018- 13 billion This is reality. There's been a coin shortage, but it's not caused by decreased production. That means that it's caused by increased demand. Quote:
I will probably buy very few if any from the mint but will look on the bright side of it all. Coin collecting might be on the rise. Maybe there are more collectors out there?
There must be a market or the mint wouldn't be making the product.
The down side could be, that the inflated original cost may be higher than the real value down the road and it will turn off the collectors who made poor investments. There's no evidence that the increase in demand for the mint's numismatic products is caused by a sudden increase in the popularity of coin collecting. Most likely it's caused by the federal government's "stimulus" handouts (which is in reality just shifting money around from people to people while devaluing the money supply) and the federal reserve's attempt at artificial stimulus by holding interest rates artificially low. The result of both these policies is inflation. During inflationary times (over supply of money), people put money in to speculative products such as coins. When/if the inflation goes away, they will too. |
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Valued Member
United States
442 Posts |
The way I look at it is, the more money the mint makes from selling commems, the less of my tax dollars they have to use to make the rest of the coins. I don't buy modern commems from the mint. Even though I collect them. I wait a couple years. The only mint purchase I have made was a 5 oz silver ATB "quarter" from Salt River Bay, USVI. One, because we have kayaked that bay on vacation. And two, because the mint was about to raise prices based on silver going up. |
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Pillar of the Community
United States
1913 Posts |
Quote:
The way I look at it is, the more money the mint makes from selling commems, the less of my tax dollars they have to use to make the rest of the coins. You'll be happy to know that the mint does not use your tax dollars to make coins. The mint actually makes money off of the seigniorage. Seigniorage is the difference between the value of money and the cost to produce and distribute it. For example, if a bank pays the mint $10,000 for $10,000 face value worth of coins that cost the mint $4,000 to manufacture, then the mint makes $6,000. The mint's profit is put in the federal treasury. The minting of coins is inflationary, but it's inflationary significance is insignificant compared to other sources of inflation such as artificially low federal reserve interest rates or government debt spending. Every bit of money that the mint makes on commemorative coins over their cost to produce is profit for the federal government. Edited by Bret
08/15/2021 1:51 pm
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Pillar of the Community
Canada
5246 Posts |
Quote:
The Canadian Mint has significantly reduced the number of collector coins it issues currently. While it's still 100+ for the year, it is no longer the 300+ it was a few years back. Well, that is a good trend. It might be another indicator that the US mint will not go that route. |
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Moderator
United States
189222 Posts |
Quote:
You'll be happy to know that the mint does not use your tax dollars to make coins... Good summary.  |
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Bedrock of the Community
 United States
12845 Posts |
1.5B+ coins produced in July.Over half of those were cents.  If we can't get even rid of the lowly cent, we're not getting rid of anything else any time soon. From the above CoinNews article: 
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Valued Member
United States
292 Posts |
There are loads of coins in circulation already, why do we need so many more at such a feverish pace? That can only mean they are also falling out of circulation that fast. Where do all these coins go?
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Moderator
United States
189222 Posts |
Quote:
That can only mean they are also falling out of circulation that fast. Where do all these coins go? Mint > Federal Reserve > Banks > Businesses > Customer Pockets > Oblivion*  * Coin jars, car cubbies, couch cushions, trash bins, fountains, etc, etc, etc. |
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Replies: 20 / Views: 3,034 |
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First Page
Posted 08/13/2021 1:26 pm
