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It looks like the penny will be getting a new look next year.Design changes unveiled for Lincoln pennyHow many of you think that the state designs on the recent quarters was done by the U.S. Mint to affect the money supply because it knew people would collect the quarters and not spend them?
I don't think this argument holds up. Those of us with saving accounts don't depend on loose change to augment them. Mine, for instance, feature automatic transfers from income on a monthly basis. Those that hoard certain coins do not get interest, but prevent our use of them, and add to the deficit by not spending money created by our beloved uncle.Just my humble opinion. ;D
I know that I have collected all the state quarters and dollars so far and I am not spending them so they are effectively useless as part of the money supply. By public law, the metal content of coins must be equal to its face value when it is originally minted. Some older coins are worth more than face value simply because they have more expensive metals in them. I have a pretty decent sized collection of silver quarters and dimes. So I dont see how minting more coins that will only get saved anyway materially increases the money supply.
I know that I have collected all the state quarters and dollars so far and I am not spending them so they are effectively useless as part of the money supply. By public law, the metal content of coins must be equal to its face value when it is originally minted. Some older coins are worth more than face value simply because they have more expensive metals in them. I have a pretty decent sized collection of silver quarters and dimes. So I dont see how minting more coins that will only get saved anyway materially increases the money supply.
I just think it might have some effect. As HF pointed out, people are saving the coins, not spending them. This means there are no taxable event from which the government can collect. But there may be some other benefit. When coinage is considered a "collector's item", the demand for U.S. currency in particular increases. I will have to do some searching on other sites to see if I can find information on it, as I'm limited in my knowledge about this kind of economic theory.
boeboe could probably tell you more Phid. He's into numismatics pretty heavy and might know whether an economic impact might be felt.
For the years discussed about saving costs associated with standards ….. let the penny stamper grunt with ease ….
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