U.S. Mint Stands to Make a Killing With New $1 Coin

2/16/2007

Yesterday, the United States Mint put the first Presidential $1 Coin into circulation. Composed of a copper, zinc, manganese and nickel alloy, this new, golden-colored $1 coin possesses the same metal content as the Sacagawea Dollar.

Of course, according to the Coinage Act of 1792, which is the Currency Constitution of the United States, a dollar, or unit, is clearly defined as 371.25 grains of pure (.999) silver, thus widening the chasm of disparity between the Mint's new $1 coin, and that called for in the Rule of Law.

I find it fascinating that the U.S. Mint finds new ways to mass-market coins whose face value is FAR in excess of their metal value, while at the same time slandering competitors such as the Liberty Dollar. Of course, the mint lavishes millions of Federal Reserve Notes each year on private marketing firms, and with profit margins such as those to be experienced moving Presidential Coins and state quarters, it is money well-spent. Make no mistake that the Mint is truly in business to make money, and in keeping with its mission, in fact remains the most profitable U.S. government agency each year.

The reverse image of a 2007 California Silver Liberty, bearing a $20 face value, Grizzly bear and lone star.
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So let’s find out just exactly how the United States Mint remains profitable, and the new $1 coin is by far the best example.

The new $1 coin has a metal value of almost a Nickel, which means that the coin’s face value of $1 is a whopping 1000% HIGHER THAN THE METAL VALUE, and taking into account marketing, administration, manufacturing and distribution costs, given the sheer scales of economy involved in producing millions of coins per year, the Mint is left with a conservative 750% profit on each $1 coin sold to the public. In order to recoup this profit “loss” the U.S. Mint also sells rolls of brilliant uncirculated coins, at a price significantly higher than face value.

Contrasting this profitability with that of the Liberty Dollar®, we find that the $20 Silver Liberty, even when first issued in late 2005, provided a 100% profit to the top level regional distributors, and at today’s silver spot price, that profit margin has narrowed to about 15%, thus demonstrating the increase in value that the Silver Liberty has afforded to those who obtained them early on.

I have no problem with the U.S. Mint’s seeking a profit for their product, as the Liberty Dollar® is a free-market product whose profit margin provides the capital for sustainability and growth. I believe that the two currency systems can peacefully co-exist, and even complement one another.

I do however, have a problem with the Mint’s new “product.” First of all, it is not a real dollar, in accordance with the legal definition for a dollar. Secondly, the U.S. Mint has devoted a portion of its obscene profits, and committed public service resources in sending letters personally informing each Liberty Dollar® RCO that we are engaged in illegal activity by promoting a private, voluntary, barter currency. The Mint continues to publish a warning regarding the Liberty Dollar® on their web-site, which may have curtailed Liberty Dollar® sales, but has at the same time tempered the resolve for those of us seeking to propagate HONEST MONEY which is comprised of the precious metals silver and gold.

Back in September, when the U.S. Mint issued their warning, I speculated that the Liberty Dollar® was considered a threat to the U.S. Mint’s coin-collecting business, and sure enough, my suspicions have turned out to be quite valid.

Not only is it reprehensible that those officials charged with the safeguarding of our national currency have instead debased our coinage to a tiny fraction of its lawful value, but these same guardians of coinage have also blatantly displayed their disregard for lawful money by attempting to stifle the legitimate and noble business endeavors of the Liberty Dollar® Organization and its proponents.

So the next time you receive a handful of change, remember that the United States Mint’s new $1 Presidential Coin is worth less than a nickel (or even five pennies) and then ask yourself which currency system is the most honest, and which type of money provides the best value to the public.

HCHQ in gold letters with Gold Liberty inset