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How does the Mint make a profit?

Hey, Matt:

Recently the daily paper published a letter from the director of the U.S. Mint defending the issuance of the so-called "Golden Dollars." He indicated that the Mint generated a profit of $800,000,000 (that's 800 million!!) due to the issuance of the G.D. My question is: How does the Mint make a "profit"? I have been unable to get an answer from the Mint; probably too busy minting other unnecessary pocket-ripping coins.

-- Les Land, San Diego

The Mint always makes a profit on its coins. It costs less than a penny to make a penny and only 12 cents to make the Sacajawea dollar. But the Mint just manufactures coins; the Federal Reserve is the bureaucracy that distributes them to banks. The Mint sells coins to the Fed at face value. That 88-cent profit on every buck is officially known as seniorage. So when the Mint struck a billion Sacajaweas, they were suddenly rolling in dough. At least that's the way they figure it.

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Hey, Matt:

Recently the daily paper published a letter from the director of the U.S. Mint defending the issuance of the so-called "Golden Dollars." He indicated that the Mint generated a profit of $800,000,000 (that's 800 million!!) due to the issuance of the G.D. My question is: How does the Mint make a "profit"? I have been unable to get an answer from the Mint; probably too busy minting other unnecessary pocket-ripping coins.

-- Les Land, San Diego

The Mint always makes a profit on its coins. It costs less than a penny to make a penny and only 12 cents to make the Sacajawea dollar. But the Mint just manufactures coins; the Federal Reserve is the bureaucracy that distributes them to banks. The Mint sells coins to the Fed at face value. That 88-cent profit on every buck is officially known as seniorage. So when the Mint struck a billion Sacajaweas, they were suddenly rolling in dough. At least that's the way they figure it.

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4S Ranch Allied Gardens Alpine Baja Balboa Park Bankers Hill Barrio Logan Bay Ho Bay Park Black Mountain Ranch Blossom Valley Bonita Bonsall Borrego Springs Boulevard Campo Cardiff-by-the-Sea Carlsbad Carmel Mountain Carmel Valley Chollas View Chula Vista City College City Heights Clairemont College Area Coronado CSU San Marcos Cuyamaca College Del Cerro Del Mar Descanso Downtown San Diego Eastlake East Village El Cajon Emerald Hills Encanto Encinitas Escondido Fallbrook Fletcher Hills Golden Hill Grant Hill Grantville Grossmont College Guatay Harbor Island Hillcrest Imperial Beach Imperial Valley Jacumba Jamacha-Lomita Jamul Julian Kearny Mesa Kensington La Jolla Lakeside La Mesa Lemon Grove Leucadia Liberty Station Lincoln Acres Lincoln Park Linda Vista Little Italy Logan Heights Mesa College Midway District MiraCosta College Miramar Miramar College Mira Mesa Mission Beach Mission Hills Mission Valley Mountain View Mount Hope Mount Laguna National City Nestor Normal Heights North Park Oak Park Ocean Beach Oceanside Old Town Otay Mesa Pacific Beach Pala Palomar College Palomar Mountain Paradise Hills Pauma Valley Pine Valley Point Loma Point Loma Nazarene Potrero Poway Rainbow Ramona Rancho Bernardo Rancho Penasquitos Rancho San Diego Rancho Santa Fe Rolando San Carlos San Marcos San Onofre Santa Ysabel Santee San Ysidro Scripps Ranch SDSU Serra Mesa Shelltown Shelter Island Sherman Heights Skyline Solana Beach Sorrento Valley Southcrest South Park Southwestern College Spring Valley Stockton Talmadge Temecula Tierrasanta Tijuana UCSD University City University Heights USD Valencia Park Valley Center Vista Warner Springs
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