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I threw down for $250.00. I just can't resist small denomination unusual coins and bills. I once obtained $200 in new $2.00 bills and gave them out as tips, spent them for coffee, booze, etc in Vegas. That reminds me...I need more $2.00 bills!
Good find; however, I really liked the old days when we could purchase savings bonds using a credit card. $500 worth of coins makes we wonder what on earth I'd do with them. Taking them to the bank with gas at $4 a gallon doesn't make much sense for 500 miles/points.
I know it might not seem like it, but this program is actually hugely profitable for the Mint. Each dollar coin costs 18 cents to make and they are selling it to the public for a dollar. The alternative would be for them to sit in the vault until the the Federal Reserve system purchased them after receiving an order from a bank, which may be forever. At that point they could claim the dollar face value of the coin. Effectively the mint is trading a liability (their 18 cents for the coin plus storage cost) for a full dollar minus transaction fees. Good deal for them, good deal for us.
Umm...that's not how it works. The Mint is essentially charged $1 when they monetize the coin. Their cost of 18 cents (or whatever) is covered by their budget.
You might also want to look into how the money supply in the US is controlled to understand why the Treasury can't (using your same argument) just print $100 bills for a huge "profit".
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Quote:
Originally Posted by ANDREWCX
Of course the US could keep bills but solve the other problems by switching to Polymer notes like many other countries (inc. Australia and some Mexican notes) - they last for ages, are very damage resistant, can't be counterfeited, and of course, are still notes so don't freak people out about tipping etc.
And, based on my own personal experience in Australia, they also slip very easily out of your pocket if not put in a wallet....
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Quote:
Originally Posted by TTT103
Good find; however, I really liked the old days when we could purchase savings bonds using a credit card. $500 worth of coins makes we wonder what on earth I'd do with them. Taking them to the bank with gas at $4 a gallon doesn't make much sense for 500 miles/points.
Oh, how about using them:
* When buying groceries
* In a soft drink machine (the ones I use now take the new dollar coins)
* To buy lottery tickets
* At a restaurant or bar
* To pay for parking
* For whatever you normally spend money on
But if you don't spend money in any of those ways, why make a separate trip to the bank? Most people who work for a living have a bank nearby their workplace.
Umm...that's not how it works. The Mint is essentially charged $1 when they monetize the coin. Their cost of 18 cents (or whatever) is covered by their budget.
You might also want to look into how the money supply in the US is controlled to understand why the Treasury can't (using your same argument) just print $100 bills for a huge "profit".
Actually that is not correct. The Mint does not get "charged $1" to monetize the coin. The difference between the cost to make the coin and the face value is the Mint's profit. At the end of the year the "Profit" is returned to the Treasury. This is only true for coins, not bills.
So....even though the Mint is paying for shipping and credit cards fees, it is still making a huge profit on each transaction. $500 - $120 (Costs including shipping and credit card fees) = $380.
coins are now on back order, watch out that it does not take to long to receive the shipment or you will be up the creek with your credit card
Reading this thread or looking carefully at the website will show your card is not charged until the coins ship.They are also not exactly on backorder, but the John Adams coin won't be released until June 28. And should your card be charged long before you receive the coins, you could still pay off the card without penalty, assuming you have the funds to do so.
Thanks for the warning, but it may be a non-issue.
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Quote:
Originally Posted by DCBob
Oh, how about using them:
* When buying groceries
* In a soft drink machine (the ones I use now take the new dollar coins)
* To buy lottery tickets
* At a restaurant or bar
* To pay for parking
* For whatever you normally spend money on
That all depends on whether you use cash often. For example, I always use a CC to buy groceries, because I get 3% cashback. I don't buy from vending machines, and the ones at my workplace don't take dollar coins anyway (only new ones do, usually). Lottery tickets... well, let's not address that. Similarly, I pay for restaurants/bars with a CC that earns 3% for dining out. Indeed, I basically spend cash as rarely as possible... I use a CC as often as possible to maximize rewards. Simply replacing your CC purchases with these coins essentially negates any benefit you get for buying the coins (since you could just have not bought the coins and paid for the products/services with your CC).
Quote:
Originally Posted by DCBob
Most people who work for a living have a bank nearby their workplace.
True, but it may not be your bank. Banks with whom you don't have an account generally don't like changing large amounts of cash... they'll probably do it, but they may scrutinize you more closely, require additional ID, etc. to prevent fraud... and they may charge you a fee if you are not a customer. On the other hand, doing a cash exchange at your own bank is generally much easier since they already have a history on file for you, but your own bank may not be convenient to your home or workplace (mine isn't, for example).
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Quote:
Originally Posted by cepheid
True, but it may not be your bank. Banks with whom you don't have an account generally don't like changing large amounts of cash... they'll probably do it, but they may scrutinize you more closely, require additional ID, etc. to prevent fraud... and they may charge you a fee if you are not a customer.
I'm not aware of ANY bank that won't exchange rolled coins (like these $1 coins) for free even if you aren't a customer.
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Quote:
Originally Posted by ANDREWCX
I was almost certain that the dollar bill had been phased out in the past but now I look for it, I find that although that was part of the various (pre-presidential) $1 Coin congressional bills - it may never have happened. I know it was congresses intent at the time.
Just the opposite is true. Congress has consistently PREVENTED the government from phasing out the $1 bill. Public Law 105-124 (which authorized the Sacagawea dollar coin) states in section 5:
RULE OF CONSTRUCTION. Nothing in this Act or the amendments made by this Act shall be construed to evidence any intention to eliminate or to limit the printing or circulation of United States currency in the $1 denomination.
Even the U.S. Mint states on its website:
Would the use of the Golden Dollar in lieu of the paper dollar save money and if yes why doesn’t the United States Mint eliminate the paper dollar?
The use of the Golden Dollar coin in lieu of the paper dollar would ultimately save money. The General Accounting Office’s (GAO) stated potential savings of up to $500 million in a report issued September 2002, which was calculated on the premise that the U.S.Government cease production of the paper one-dollar bill. However, the United States Dollar Coin Act of 1997, which authorizes the Golden Dollar, did not call for the elimination of the paper dollar. Consequently, dollar coins and dollar notes co-circulate in the marketplace. The United States Mint does not have the authority to change existing legislation thus, full cost savings cannot be realized.
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Quote:
Originally Posted by Schutzee
If you live in the Northeast, Commerce bank offers free coin counting machines. Simply pour the coins into the machine and it gives a receipt that the teller redeems. You don't even need an account at the bank. I have redeemed my children's accumulated coins of $750. or so a few times. Commerce even gives the kids free piggy banks!
In the Washington, DC area, Chevy Chase Bank also offers the same free coin counting and redemption service to the general public.
Similarly, I pay for restaurants/bars with a CC that earns 3% for dining out. Indeed, I basically spend cash as rarely as possible... I use a CC as often as possible to maximize rewards. Simply replacing your CC purchases with these coins essentially negates any benefit you get for buying the coins (since you could just have not bought the coins and paid for the products/services with your CC).
