The Dollar Coin: Supply without Demand

In 2005, Congress, acting upon the success of the 50 state quarters program, decided to take specialized currency one step further with the authorization of the Presidential $1 coin.

The idea would be to release four dollar coins a year for roughly ten years, which each one depicting a president. It was meant to be both a new, more practical type of coin as well as an “educational” tool. In reality, the only education that this coin brought with it was that dollar coins are nothing more than a waste of time and taxpayer dollars, and now their only purpose is to take up real estate in a Baltimore bank vault:  It has been discovered that in a large vault, there are nearly 1 billion dollar coins that have not been circulated, roughly 40% of all the dollar coins the federal government has made since 2005.

Although intended to be worth a dollar, the government spends 30 cents each coin. Therefore, $300 million worth of time and effort went into making coins that will not see the light of day. Even worse, the government is obligated to mint these coins by act of law until the series has run its course, possibly 2016 or later, and the vault of coins could swell to nearly 2 billion uncirculated coins, costing taxpayers $600 million. More at www.silverunderground.com.

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