Why IS the U.S. Minting Dollar Coins?

First of all Happy New Year!

Now I really DO have to ask the question why the U.S. is bothering to mint One Dollar coins. Until we get rid of the Paper Dollar it's a waste. Being a fan of paper money as well I'd hate to see this but seriously that IS the only way it has a chance of making any sense at all.

Don't believe me? Then let me draw on an article by Coin World that my coworker found on line.

It seems we now have a 12 YEAR inventory of dollar coins sitting in Federal Reserve Banks and contracted armored carriers. Total amount? 857 MILLION DOLLARS!
There are so many the Federal Reserve Banks are looking toward other avenues due to vault restrictions and insurance limitations.

Some of the surplus actually comes from "dollar coins returned by depository institutions". What? Oh banks are returning them.

The biggest surplus seems to be in Presidential dollars but the Native American pieces are building up too. Hey, you can order those from the mint at face value and get free shipping. Does that tell anyone anything? We ordered them at work. Demand was pathetically low. We give them away as change now.

Okay, I'm touching on the iceberg here folks. Those that know me also know I've NEVER been a fan of any of the new dollars. Well, this is a big part of it.

I work in a coin shop. We have them all. We sell them at $1.50 each because that's part of our business. Why a premium? - because we trade with other dealers in other parts of the country so we can get coins from both the Philadelphia and Denver mints. That's what our customers demand, and as a coin shop, that's what we supply. We have thousands of them and they take up a lot of space.

I'm not raising this point to knock those that collect them. A true high grade coin will garner some money. A "book" filled with them may start a budding collector. There's a lot of history. Kids like them as do parents and granparents for the kids.

What I AM saying is that there will be uncirculated rolls of these around for a VERY LONG TIME.

The mint needs to take a good look at the stamp hobby. Total overload and a dying hobby. We buy stamps at UNDER face value then use them for mail. Of course the USPS won't buy them back - at least you have that going for you with excess coins. They're still worth a buck.

Be warned though. The next time you read about a "low mintage" of a modern coin be it a quarter, a nickel, a dime, a dollar - you name it. How many are sitting in vaults because they are not NEEDED for circulation.

A small rant by me and a bit of food for thought.

Clembo

 

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yea probaly dont need dollar coins for circulation. i mean how often do u get a dollar coin in change than a regular dollar bill? its pretty rare. i think the only reason to make dollar coins is for people to collect.

 

The presidential dollars have many aesthetic factors that make them egregiously heinous and even painful to look at. No winners there.

Your point about killing the dollar bill really would be the starting point. But then, people want to believe that $1 is a special unit of currency, and would be crestfallen to see the denomination reduced to a mere coin.

 

Never used a dollar coin myself in circulation. I'd rather carry 5 $20 bills, than $100 dollar coins in my pocket.
The dollar coin, won't work with the paper dollar in place, and honestly is a waste of money. (That we, the United States, probably don't even have!)
At one time, I started to collect these coins, but last Saturday I turned in what I had to the bank, so I could get some cash for them. I'm never going to use them, and they were taking up space.

These dollars to me, are useless, and can't see the benefits of owning them. They are ugly coins, made of cheap metal, most of America doesn't even know what they are, and they are an inconvenience to carry around versus a normal paper dollar.

 

Five $20's versus One Hundred $1 coins? Come on, tmoneyeagles, at least compare apples to apples. The $1 coin has it's place in commerce or would IF the rag buck was eliminated. They would certainly work better in vending machines than most circulated 2-year old Dollar bills. I don't see the $1 bill going away though. There are too many people with a personal interest in seeing them continue.

 

Well T$, they're still better than a pocket full of Ikes. I do pick up a roll now and then at the bank, keep them in the car for my daily $2 bridge toll or for use at Dunkin' Donuts... they work just like paper money!

 

Gold dollar, silver dollar, Trade dollar, Morgan dollar, Peace dollar, Eisenhower dollar, Susan B Anthony dollar, Sacagawea dollar, Native American dollar. Every one a failure. Are we seeing a pattern here? The problem is that politicians lack the political will to retire paper currency ... then all they need to do is design a dollar coin that might prove popular. A bunch of facially challenged dead Presidents doesn't help, either ...

 

Reduced to a mere coin?

Wish I had a barrel full of "mere Coins", esp if they were Double Eagles.

It is a matter of perception. I think there will come a day where their utility will overcome their current mass rejection. They will not be worth much but neither will a paper currency of the same denomination.

 

I doubt that the dollar coin would circulate if they used the old Morgan design, so it isn't the pathetic current design. It is because there is a paper alternative as you state. Can you imagine how many of the pres. dollars will be in storage by the end of the series? They should reduce this to a collector only coin (proof sets, rolls etc.).

Why do them mint half dollars? They are basically never circulated either. At least they are not minting them in circulation quantities anymore. Don't get me wrong I know as collectors we don't want the half to go away, but they are basically a waste also.


Lack

 

I think that question is easily answered!!

 

?:bigeyes:

Drop the other shoe......the answer is........IYHO?

 

Saw that article also, the dollar coin is minted due to an Act of Congress. The Mint is required to produce the dollars, even if there is no demand. I see two main options, change the law allowing the Mint to throttle production to meet demand, and just stop producing the paper dollar.

Both of these would draw their own negative reactions. So where do we go from here? Maybe we need to realize that because there would be negative reactions doesn't mean we shouldn't do it anyway.

 

The answer to the question is simple: Congress requires the mint to produce them.

The dollar bill should be gotten rid of.

 

I'd rather carry $100 of paper dollars than $1 coins, how you like that?
It doesn't matter, it is a $1 coin compared to a $1 paper bill, you aren't comparing apples to apples in any sense.
There is no need for these presidential dollars, IMO. And I stand by my statement, and I'll even be more vague for you, so you can use your imagination.
I would like to continue using my PAPER MONEY versus a useless $1 coin.

Yep, can agree with you there. But we aren't comparing apples to apples now are we?
And sorry about the bridge tolls There was talk about adding a toll road on 1604 I believe, but not happening. So we are saved for now, I guess.

 

.....lots of discussion here about losing the paper buck and forcing (that's would it would be)

us to use the dollar coin. hmmmm. i just read an article about the 2011 native

american dollar coins and the in fighting within the CCAC over the

use of a thanksgiving theme on the coin. i guess they're still gonna mint THOSE!

more for storage, yes?

 

Come on, give the mint a little credit. With the half dollars, they are making money on them, because they are only available from the mint at a premium. They will ship dollar coins to you at face value, and pay to have them shipped to your door... and they still don't circulate! Stop making the dollar bill, like so many other countries have already. People will stop complaining in a few months, and the dollar coins will finally circulate out of necessity. Of course that will never happen, it makes way too much sense!

 

I don't mind using some 1$ coins now and then,but you better have a good sturdy belt if you want to carry many in your pants pocket,just too bulky and heavy,why does everyone hoard them instead of spending them,easy answer is because they think they are special,I've had folks in line behind me complain about me using them to buy stuff,comments like; what the heck you should save those,and don't you know those will be worth more someday. Ignorence is the problem,the mint needs a advertising plan to enlighten people to their availability,kind the same with 2$ bills,I 've heard comments like those havn't been made in centuries,and my favorite is that those are to rare to use. Go to a bank and get all you want!!!!! Also I think the retailers and other sellers discourage the use of some forms of currency because they don't have slots in their cash drawers for them and don't want to have to buy new cash registars.

 

I usually give them as tips to bartenders and waitresses. I get comments and looks, as if they are something special, or are good luck. Either way, I'm glad they aren't disappointed at my actions. I hear from so many people that some refuse dollar coins as change. They are legal currency...and like Marge Simson says,"It's a Sacagawea. You can take it to the bank and trade it for a real dollar."

 

We as a society have evolved when it comes to money and even as a 26 year old I can honestly say that if we went back to only having coins and no paper money the way it was originally, I would'nt mind it; but how many others would agree. Yeah, I would rather carry a ten dollar bill than ten Sac dollars, but it would'nt be a hassle to carry two half eagles as opposed to a ten dollar bill for me. Our buying power has gone down significantly over the past century which is why the dollar and half dollar have fallen out of favor; people carried dollars and half dollars 75 years ago because they went a long way. Today, how often do we use dollars as opposed to tens and twenties? MHO bring back all coins.

http://www.constitution.org/uslaw/coinage1792.txt

 

Though I like the coins, I completely agree that they will never catch on until the eliminate the $1 note and only produce the $2 note and up. They would have enough dollar coins to do this as they are going to be a ton of them in the Fed Reserve because people don't want them.