US Mint touts cost savings in .999 silver switch

Coin World ^ | Feb. 27, 2012 7:37 a.m. | By Paul Gilkes

[iceskater]

I recently read The Tudors. This is exactly what Henry VIII did to finance his extravagant lifestyle and ill-advised wars. We have learned nothing in 500 years.

[JRandomFreeper]

And roman emperors 1500 years before Henry.

Politicians have been crooks since the beginning.

/johnny

[Lurker]

Debasing the currency is one of the major warning signs of a collapsing economy.

[null and void]

He made coin of higher purity silver?

[JRandomFreeper]

You are only saying that because every time in history a government debased it currency, it collapsed.

We've been told it's different this time. ;)

/johnny

[palmer]

I think it’s the opposite. More silver makes the coin a better investment.

[palmer]

Not debasing, the opposite.

[JRandomFreeper]

This article describes moving from .999 fine silver to .900 silver for SILVER coins that the US mint produces.

/johnny

[MediaMole]

In this case, they aren’t debasing the currency, they are moving from 90 percent silver to 99 percent silver.

The cost savings comes because 99 percent silver is a commodity item, while 90 percent silver has to be specially alloyed for the mint.

[Lurker]

Um, they’re putting less silver into these coins, not more.

.90 is less than .999. Just sayin’.

[palmer]

Henry VIII never read the article either.

[MediaMole]

No, you read it wrong, they are going FROM .900 TO .999.

[palmer]

Just sayin’.

I have superior knowledge since I read the article.

[Lurker]

Switching the fineness of silver in the annual Silver Proof sets and America the Beautiful Quarters Silver Proof set to .999 from the current .900

My mistake. Palmer is correct.

[DeaconBenjamin]

Sorry boss, this is running the opposite way. Silver quarters will be minted at 99% silver, not the historical 90%. But they are not being minted for circulation, as the historical coinage was.

As for Henry's debasement and Gresham's law (Gresham lived under QE I; his law says bad money chases out good); any pre-65 coin obtained in normal commerce is a windfall. A silver dime has $2.67 in silver; a silver quarter $6.69; a silver half $13.37; and a silver dollar $28.59.

Why does a silver dollar have more than 10 times the value of a silver dime? It all started in 1853.....

[palmer]

Now we are even. Either coin is better than clad.

[UnbelievingScumOnTheOtherSide]

The backing of fiat currency lies in the willingness of the government to take substantial amounts of it back in payment of taxes. In fact, the federal government collects and recycles more than twice the total circulating currency each year.

This would not work in a low-tax environment or one without a steady stream of transfer payments because so little would be needed.

In the 1800s, the U.S. accepted payment of taxes only in gold which limited its ability to create credible paper currency or silver. (Silver thereby caused inflation which was popular with debt-burdened western farmers championed by William Jennings Bryan at the turn of the last century.)

[Lurker]

Either coin is better than clad.

Very, very true.

[DManA]

Why don’t they use old chewing gum wrappers. Imagine the savings.