The Market – US Mint: A Profit Making Machine

February 17th, 2007

The US Mint is now issuing the new $1 coin collector series that will feature 4 presidents a year for a total of 43 presidents over 11 years. Not too long ago, the mint issued a new quarter collector series featuring all 50 states, and this series is still in the process of been introduced. The US Mint seems to be developing some business savvy.

For each series, the total value of $1 coins issued will be $43, and the total value of the twenty-five cent coins will be $12.50. If one were to assume that these two series will be collected by 5 million coin aficionados, then the dollar value of the coin collections could approach $278 million in non-tax revenue for the government. Importantly, this money in coin collections does not add to the money supply used in everyday transactions and the velocity of money within an economy.

Basically, the US government has found a nifty little way to generate revenue from printing (in this case, ‘coining’) money without increasing the amount of money in circulation and in effect the monetary effect on the inflation rate. Who says the government doesn’t know how to run a business?

Entry Filed under: The Market

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