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 Replies: 8 / Views: 1,046 |
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Pillar of the Community
United States
2734 Posts |
Poll Question
Given the current difficulties in obtaining new coins from banks and circulation, I think that the U.S. Mint should seriously consider expanding the Direct Ship Roll program (for purchasing business strike coins) to include all of the circulating denominations.
Reasons:
1. The Mint can make more coins, and more profits from seigniorage, by selling the coins through their existing sales channels directly to collectors.
2. Collectors would get a 'guaranteed' way to get BU rolls at face value, and would not have to bother with attempting to get BU rolls from banks or paying premiums from dealers.
3. Dealers could still sell single rolls or single coins, for those that did not wish to buy a box of rolls. (as is currently done with Dollar coins)
4. Collectors could also sell/trade extra BU rolls or individual coins, or even spend their 'extra' coins (since they would be acquired for face value, they could be spent without any cost penalty).
5. Small businesses could easily order the coins for circulation use.
6. All of the benefits above would apply regardless of the state of the economy. Collectors would love the convenience of ordering BU coins at face value, in good or bad economic times.
So, the poll is, what do you think should be done with the Direct Ship Roll program?
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Bedrock of the Community
United States
10982 Posts |
The Direct Ship program had a specific intent that does not apply to any other denomination. The U.S. Gov't is willing to take a financial "loss" in an effort to get $1 coins into circulation.
From a collector's point of view, this proposal looks attractive. From a financial point of view, there's no way it would be approved.
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Valued Member
United States
377 Posts |
 with bherring1964 But it is fun to wish. I believe the mint could expand on the direct ship program to include all circulating coins. They could even add shipping costs and the coins would still be ordered The problem is getting the mint to listen. The only way they react is if enough congressmen contact them |
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Pillar of the Community
 United States
2734 Posts |
The business strike Dollar coins only cost the Mint
22¢ each to produce.
Or, more to the point, $55 to produce the 250 coins in the
Direct Ship Roll box, sold for $250 (face value).
I don't think it costs them $195 a box to put them into the rolls,
box the rolls, send them bulk to PBGS, and then ship them.
The Direct Ship Roll program was designed to encourage the use
of the coins in circulation by making it easy for people to
acquire the coins directly, bypassing the Federal Reserve.
Banks and credit unions are increasingly not ordering new Dollar
Coins from the Fed, especially this year with the "double
whammy" of their existing stockpiles of these coins and the slow
economy. The Direct Ship Roll program ensures that some new
Dollar coins can still be distributed, and generate seigniorage
profits for the Mint.
The Dime and the Quarter are still on the 'black ink' side
of the ledger, just not as much as the Dollar coins.
Direct Ship at face value with a net profit is still quite
feasible for these two denominations.
A better point is that the Cent and Nickel are on the 'red ink'
side of the ledger, which could argue that a premium should be
charged for those two denominations. It would still be a better
situation for the Mint and collectors to charge a small premium
and not impose quantity limitations (as compared to the "LP1"
situation, with a huge premium penalizing collectors and a quantity
limitation limiting the Mint's profits). The Mint would make more
profit selling 10 million (20M? 50M?) rolls of Cents sold at three
Cents per coin, then they did on only 100,000 rolls sold at 9 Cents
a coin.
Edited by DNA
04/12/2009 9:57 pm
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Bedrock of the Community
United States
10982 Posts |
Quote:
The business strike Dollar coins only cost the Mint
22¢ each to produce.
Don't forget that all coins (and paper currency) must be montetized at full face value by the United States Treasury prior to entering circulation. The production cost is but one part of the picture. To avoid rampant inflation, the U.S. Gov't has to cover $1 for every $1 put into circulation. Those dollars have to come from somewhere and lately it seems China is provding a lot of them. |
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Pillar of the Community
United States
3098 Posts |
DNA, but why does the mint want to spend more to get regular (non-dollar) coins into circ? Their cheaper avenue is through the banks, and with circulation already where they want, why do they want to spend more? On that note, I would support 50c pieces, but where's that option?  |
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Pillar of the Community
United States
6326 Posts |
They (the Mint) makes money on coins that DON'T circulate. That's what they'd like the most ! The exception they made to get the Dollar coins circulating, is just that.....an exception. But, if we're doing "wish lists" then yeah.....it would make life easier for collectors to get, and stay current, with Ultra Modern coinage for sure. So I voted to "expand all"......  |
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Pillar of the Community
United States
1699 Posts |
I agree, if they want the $1 coins to circulated, they better stop producing the Dollar Bill.
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Pillar of the Community
United States
2734 Posts |
Quote:
wd1040:"I would support 50c pieces, but where's that option?" They're 'NIFC', and have been since 2002. Quote:
wd "Their cheaper avenue is through the banks..." ...who are ordering very few new coins at the moment, due to new additional surcharges being imposed on new coin orders by the armored car companies! Quote:
eaglefoot: "They (the Mint) makes money on coins that DON'T circulate. That's what they'd like the most!" Collectors would be buying most of the Direct Ship Rolls, as is almost certainly the case for the Dollar coins right now! And if the Mint wants the coins not to circulate (for seigniorage, again!), who better to sell them to than collectors?  Edited by DNA
04/13/2009 11:31 pm
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Replies: 8 / Views: 1,046 |
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Posted 04/12/2009 8:56 pm
