How Do Coins Go Into Circulation?

That depends on the coin and where you are.

In Canada, the mint makes the coins and stores them. The government arranges for someone to pick up the coins and have them sent to various banks. From there stores buy the coins to use as change when they need some and you get them in your pocket that way.

In some cases specific stores are used for circulation and the coins get sent from the mint directly to the stores.

That's pretty much the idea behind it.

This seems to be a pretty good description of how US coinage and paper get into circulation.
http://www.newyorkfed.org/aboutthef...t/fed01.html

All US Government employees are paid by allowing them to take as many coins as they can carry each day. Many politicians really come out ahead since they can place as many in their big mouths as possible. They all then take them to a store that has those counting machines and get real money for the ones they got paid with. From those machines crimals break into the machines, take all the coins and spend them on beers in a tavern. From there all coins float around to all those people that spend all their time in bars.
Also, the Mint workers send piles of coins to other countries as payment for the cars they drive as an advertisement for that brand.
Many of the newer coins are also sent to banks but warned that if they tell the public about this, the CIA will be visiting.

I too thought that is what is happening. However, being a coin show frequenter I find that many, many dealers have rolls and rolls of them for sale. Not sure how they got them, but they do and they know hot to available so the prices are silly. I suspect with all the crasses going around with the State Quarters and the Lincoln Cent that dealers are hoarding what ever they think will bring more money in the future.
Or maybe your right and the Fed's are hoarding them.


That is so true. Need more hobbies.