Federal Reserve, Contracted Vaults Hold 857 Million $1 Coins

Don't forget about the other failures! The SBA and the IKE. (Although I like the Ikes)

ratman, I was asking what kind of dollar coin is in storage now. If the Feds are stockpiling dollar coins for whatever reasons, I am curious to know what these coins are. Presidential? Native American? Or is it a new kind of dollar coin that hasn't been released for circulation yet.

I just dropped a letter off to the senator in my district. It might not do any good but at least I made an effort.

Sorry about your luck Matchbox, but your gonna see Presidents on dollar coins for several more years.

I think I have read that the country would need around 5-10 billion $1 coins to replace the $1 note. If you figure the average life of a note is 18 months, then you need a lot of coins stored up to replace the coins that fast.

The coins and bills cost about the same, but coins last longer. Also, when a $1 bill wears out then it is replaced. Coins are not replace at face value...they are repurchased as scrap metal...I believe.

The way the Fed works currency is really just non-interest bearing debt for the US government (you can look at the Fed Balance sheet and the Federal Reserve Act for how this works). So it works out to US government paying about 4.5% interest rate since the one dollar notes are replaced so often. The $1 coin is a 94 cent profit for the government...done deal.

The coins being put in jars actually works for the well for the government. That increases the need for coins, which are made way under face value (save the nickel and cent).

I'm hoping that the mint will decide there are to many sitting in the vault and they need the presses for other coins and only mint as many new dollar coins as needed. Why would they continue to mint millions of each, just to see them sit in vaults. It took 18years I believe before they exhausted they supply of SBA's. Imagine how long these will sit in the vaults!
Jim

In my humble opinion, the dollar coin will never be used or successful on a regular basis in this country unless it is made small enough and light enough that people will not be annoyed by carrying several dollars in their pocket. If they would come out with a lighter version of a dollar coin with an extraordinary design that people loved then there will be more willingness to transgress away from the paper bill.

The other problem the politicians have is exemplified by what is currently happening, i.e. they are trying to print their way out of debt, something they cannot do with coin money!