Seignorage is the net revenue derived issuing coins or paper money. It arises from the difference between the face value of a coin or bank note and the cost of producing, distributing and eventually retiring it from circulation. Note: Seigniorage is an important source of revenue for mints and some national banks. For instance: the "50 State Quarters" program was launched in the U.S. in the late 1990s based on Canada's "Millinium Quarter" series. The mint and Congress expected large numbers of people collecting and/or hoarding the new quarters as they rolled out of the U.S. Mint thus taking the coins out of circulation. Since it costs the Mint less than five cents for each 25-cent piece minted, the government makes a profit whenever someone keeps a coin and choses not to spend it. Because of the discovery of all the error quarters, and the saving, collecting and hoarding, the U.S. Treasury estimates it has earned about $5 billion in seigniorage from the quarters so far. With all the "hoopla" about the 2007 Washington Dollar errors, they are already profiting immensely from them! Clinker
Wow, thanks for the info. Who would have thought we are helping out the government when we save stuff from circ. Thanks for the info. :thumb: Phoenix
