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 Replies: 103 / Views: 19,294 |
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Valued Member
United States
272 Posts |
Thats whats sickening. Instead of getting rid of them they should offer to sell them to store or collectors if they really dont care about them that much
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Pillar of the Community
United States
2815 Posts |
Conder101 has it right. The notion of melting down Ikes is just ridiculous to me. A $1000 bag of Ikes is still $1000 dollars. They are not melting down Ikes. Can I prove this? No. I'm just using common sense. That doesn't mean that someone else (i.e., someone in the position to do this) has it.
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Valued Member
United States
272 Posts |
I agree it would seem stupid to do it. But if you melt it down you could have more than $1,000 wrapped up in 1,000 ikes
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Pillar of the Community
United States
2271 Posts |
What common sense is there is presume that a worthless "asset" should be retained at significant cost? It's is certainly true we shouldn't expect government to display common sense so there's little reason tobelieve they are being destroyed.
I place a great amount of weight on anecdotal evidence and I saw a picture of a waffled Ike. A poster here said he can't get them anymore.
Perhaps they are being destroyed district by district.
Time don't fly, it bounds and leaps.
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Valued Member
United States
272 Posts |
Again what a said thing if this is actually true. The government really cant be trusted, so we pretty much have to assume the worse
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Moderator
 United States
188770 Posts |
Quote:
As long as they dump $1000 in other coin or currency out into the money supply for every 1000 Ikes removed, nothing has changed. No, Conder has it right. No one, not the mint nor the fed, would melt $1000 face value of coins to get $160 of scrap metal. Your theory may work for currency, but not for coin. |
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Pillar of the Community
United States
1158 Posts |
Quote:
Conder101 has it right. The notion of melting down Ikes is just ridiculous to me. A $1000 bag of Ikes is still $1000 dollars. They are not melting down Ikes. Can I prove this? No. I'm just using common sense. That doesn't mean that someone else (i.e., someone in the position to do this) has it. No it is not $1000 at the mint, it is a stack of worthless metal since it isn't being used for its intended purpose. Since the mint creates money, the face value of a coin is irrelevant. If they melt $1000 of Ike's and produce $1000 of another kind of coin then it's even. If they remove $1000 of coins that people won't circulate for $1000 worth of quarters that circulate well, then they have actually improved the utilization of money and it is a net positive. Think of the reverse. What happens when they turn $100,000 of paper into $100,000,000,000 worth of $100 bills? Do they suddenly show a 99.9 billion dollar profit? No, the money is not theirs. It's just using $100,000 worth of paper as an input cost to replace $100,000,000,000 of value somewhere else in the money supply (or to buy bonds from ourselves to prop up the economy, but that's another story). Edited by tkbslc
12/31/2014 3:58 pm
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Moderator
United States
188770 Posts |
But these coins are not stored at the mint, they are in the Federal Reserve!
The fed had to buy these coins from the mint at face value. They send them to the banks at face value. The banks send them back to the fed at face value.
The mint will never take them back at face value! They will take that $160 of raw materials, though, and the fed will lose $840.
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Pillar of the Community
United States
1158 Posts |
For currency, they only pay the cost of printing, so I was going off that. I did not realize they payed face value for coins.
However, the Fed can simply remove coins from circulation by creating a different type of money to replace it. Coins do not have to be replaced with coins. Replacing $1000 in coins with $1000 in cash would cost pennies, and replacing it with electronic funds would cost nothing.
Edited by tkbslc
12/31/2014 4:46 pm
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Moderator
United States
188770 Posts |
Quote:
For currency, they only pay the cost of printing, so I was going off that. I did not realize they payed face value for coins. Yes, it is a common point of confusion. Quote:
However, the Fed can simply remove coins from circulation by creating a different type of money to replace it. Coins do not have to be replaced with coins. Replacing $1000 in coins with $1000 in cash would cost pennies, and replacing it with electronic funds would cost nothing. True. And it is what they have done. Those bags of dollars are sitting there while other coins circulate. The problem is they cannot just toss them away. The mint will not take them back. The buck literally stops at the fed. It is the gotcha of seigniorage. Really, the same thing happened with the Morgan dollars. They ended up sitting in vaults, unwanted by the banks. Eventually demand made it worthwhile to sell them for a profit. |
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Pillar of the Community
United States
2815 Posts |
Hmmm. Maybe in 100 years, if the Ikes survive storage, they can market a sell off of Ikes. The demand would have to be there, though. Probably just a pipe dream. And to think, if they had just killed the dollar bill in 1970-71, Ikes would still be circulating. I can only contemplate. 😩
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Pillar of the Community
 United States
1804 Posts |
bertensgrad Quote:They probably just don't feel like transporting them right now. I'm sure they will eventually sell them like the Morgan dollars. I am loco with self doubts-speculations-theories-guesses. I feel-hope there is a change coming. I just hope if they decide to liquidate the FED-CASH hoard, I hope it is open to the public. Put me down for 10,000 ~~~ 20,000 coins, if they are offered at FACE. If they want to sell at a profit, guess that will depend on the BAG (or PALLET) price.  |
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Pillar of the Community
United States
1804 Posts |
ErrorCoins222 Quote:I know very little about the system used for storing and releasing Ike dollars to the public, but this decision makes nothing but sense to me. May I please politely disagree? Quote:Storage for these dollars is costly. Additionally, the very few people that are able to get their hands on them through the "system" are searching them for their own benefit, not for actual circulation. Basically, the Ike dollar has had little actual use in its "useful life". (1) All coins are costly and a lot of trouble. (2) I guess all box, bag, roll searchers are doing it for their own benefit. Be it cents, nickles, dimes, quarters etc. Quote:As to the value of Ike dollars, I see no direct change. The dollars have never been that popular and the Ike dollars that are/were being stored by the Reserve have never been very accessible to the public anyway. (1) Popular? For collectors that is a personal choice. (2) Accessibility IS the problem hereQuote:They should do the same for the SBA, Sac. and Pres. dollars too, IMO. Save and release the IKEs. Kill off the others.  Edited by Domain555
01/01/2015 11:15 am
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Valued Member
United States
406 Posts |
It may be harder to find Ikes in circulation or from banks, but that does not mean that they are disappearing. Every estate, accumulation, collection I am offered has from a few to a few dozen Ike dollars in them, almost always worth only face value, and every other dealer I know is in a similar situation. Personally I just don't fool with them although I take them as a favor to the sellers. Regarding paranoia: Just because you are paranoid doesn't mean they aren't out to get you. Best Regards,  George George |
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Pillar of the Community
United States
1531 Posts |
"Ms. Bank Teller, do you all have any $1000 Ike bags in stock?"
"What that is?"
To answer your question, no... Never. My small Alexandria, Louisiana bank probably hasn't ever had an Eisenhower enter through the doors.
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Replies: 103 / Views: 19,294 |
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Posted 12/31/2014 1:25 pm
