The
State Quarters program is one of the few government programs that actually returns money to the Treasury. Since the
State Quarter program began in 1999, many hundreds of million of dollars in extra profits has been earned by the Treasury dept. Reason: Many people collect the quarters, setting them aside, taking them out of circulation. It costs the government about 4 cents to make a quarter, but sells them to the public (via Federal Reserve) at face value. The collector demand for the
State Quarters has created an abnormally high demand for quarters, thus the extra profit for the mint. This type of profit is called seigniorage.
The govt expects the same sort of success from the
Presidential dollar series, starting in 2007. That's one reason why the law passed easily through Congress. We'll see. There are many on this forum who disdain the idea of a dollar coin. Personally, I think we'll see much more acceptance from the public than we saw with the
SBA dollar and the
Sacagawea dollar.