Fun with the US Mint

[brewer12345]

AKA "you cannot make this stuff up," as a friend put it.

Ran across this gem on Fat Wallet. The US Mint is apparently busily trying to get $1 coins into circulation even though the public isn't too enthused and therefore the banks don't want to carry the coins. So to push the coins, the mint has a program that allows individuals to order rolls/boxes of current production on-the-run $1 coins. To induce purchases, the mint offers free shipping and allows you to pay with a credit card (and the charge is treated as a purchase rather than a cash advance). So the game is to buy as many $1 coins as they will let you, charge it on a credit card that gives you a cash back reward (such as the Schwab Visa that kicks out 2% or the Pen Fed Visa that does the same to the tune of 1.25%), cash the coins in at the bank when they arrive, skim the float, and then pay the CC bill when it comes due. And the mint loves the deal because the $1 coins cost something like 20 cents to make, so its really easy for them to eat the CC transaction fees and the shipping.

http://www.usmint.gov/mint_programs/$1coin/index.cfm?flash=yes&action=directShip

 

[Htown Harry]

Members of the Flyer Talk forum - home to road warriors, airline miles enthusiasts and hotel points mavens of all kinds - jumped all over this program. They have a thread with nearly 5000 posts. One of the posters has created an FAQ:

FlyerTalk Forums - View Single Post - Buy Presidential Dollar Coins with CC @ Face Value, Free Shipping

 

[samclem]

And the mint loves the deal because the $1 coins cost something like 20 cents to make, so its really easy for them to eat the CC transaction fees and the shipping.

By "them" you mean "us" taxpayers, right? We get to pay the postage for these things and the 3% CC merchant transaction fee because the Treasury is determined to foist these unpopular coins on the US public.

Well, I don't blame anyone for taking advantage of the government's stupidity. Maybe I'll buy some myself, and use them to send a message. I'd like to unload a couple thousand of these buggers at the nearest IRS office as my first estimated tax payment of 2010.

"Back up the truck, boys! Sorry for the inconvenience, but you've gotta take em, they're official US currency you know. Let your fellow Treasury workers know how much you like 'em"

 

[ziggy29]

If Canada's experience is any indication, we will never circulate a $1 coin unless the paper $1 bill is discontinued.

 

[REWahoo]

If Canada's experience is any indication, we will never circulate a $1 coin unless the paper $1 bill is discontinued.

That idea is completely loonie...

 

[BOBOT]

Wish they'd do it with the First Lady series. That Anna Harrison babe - yowza!

 

[Texas Proud]

If Canada's experience is any indication, we will never circulate a $1 coin unless the paper $1 bill is discontinued.

Or the UK.... they have 1 pound and 2 pound coins... the smallest bill is the 5....


BTW, I did look at the site... did anybody know about the $1 Presidential coins? I did not.... and there are almost 12 issued!!!

And looking at the schedule of the issues... it looks like they are only issuing the dead presidents (except I do not see Reagan)... and I thought... we got a lot of live ex-presidents... Carter, Bush, Clinton, Bush...

 

[Bimmerbill]

I didn't now about the pres coins either. The rest areas here in NH were giving the Sacajawea coins back as change when you bought a lottery ticket or vending machine stuff. Think the NH Liquor stores do that too when you get a lottery ticket via machine.

 

[bssc]

That idea is completely loonie...

and twonie.

Of course, the dollar bill and the penny cost us taxpayers money but a majority of the people want to keep them because they are more traditional than efficient.

 

[ziggy29]

Of course, the dollar bill and the penny cost us taxpayers money but a majority of the people want to keep them because they are more traditional than efficient.

I also think, to some degree, people don't want to be reminded about how much purchasing power their change has lost over the last few decades of fiat money.

 

[RonBoyd]

and twonie.

Of course, the dollar bill and the penny cost us taxpayers money but a majority of the people want to keep them because they are more traditional than efficient.

Similar to the wisdom involved in rejecting the Metric System.

 

[bssc]

Similar to the wisdom involved in rejecting the Metric System.

I still think that we should measure things in furlongs per fortnight and firkins. Wiki has more

 

[RonBoyd]

I still think that we should measure things in furlongs per fortnight and firkins. Wiki has more

I suspect I could use (a lot) more of them firkins but let me check Wiki to make sure.

 

[brewer12345]

I still think that we should measure things in furlongs per fortnight and firkins. Wiki has more

A number of specialty beer bars hve "firkin fridays" promotions...

 

[Buckeye]

I bought $250 about a year ago. I found $75 in a dresser drawer during the move. Oops...not helping get them into circulation. I agree with you it is a great deal. Just made another order. I love 'em.

 

[Westernskies]

I bought $250 about a year ago. I found $75 in a dresser drawer during the move. Oops...not helping get them into circulation. I agree with you it is a great deal. Just made another order. I love 'em.

Don't get too carried away, you might overload that second-floor apartment...

 

[Buckeye]

The place was built a long time ago out of concrete block. No sound from neighbors and the downstairs neighbor says she doesn't hear a thing. We checked to be sure we weren't doing something totally annoying. Amazing for living in an apartment.

But you are right, the rolls are heavy!

 

[cashbalancetrouble]

"... or is that justa roll of dollars in your pocket?"

FUNNY HEADLINE
"S

 

[FUEGO]

Hehehe, brewer has found my latest legal scam. So far I have made about $600 on this little deal plus a small amount of float (57 days on my latest batch of $11,000 in coins!).

This is the dumbest waste of money government idea I have seen in a while. But I intend to continue to exploit this to the maximum extent possible. Problem is, I am having some difficulty pawning off large boxes of dollar coins to the local credit union.

Get this - the mint overnights them by air using UPS. "Free" shipping for mint customers. These suckers weigh 46 pounds for every $2500 box. Wonder what the shipping charge for the mint is for folks ordering tens of thousands every month?

 

[Texas Proud]

Hehehe, brewer has found my latest legal scam. So far I have made about $600 on this little deal plus a small amount of float (57 days on my latest batch of $11,000 in coins!).

This is the dumbest waste of money government idea I have seen in a while. But I intend to continue to exploit this to the maximum extent possible. Problem is, I am having some difficulty pawning off large boxes of dollar coins to the local credit union.

Get this - the mint overnights them by air using UPS. "Free" shipping for mint customers. These suckers weigh 46 pounds for every $2500 box. Wonder what the shipping charge for the mint is for folks ordering tens of thousands every month?

I am surprised your credit union would accept that much in coins.... IIRC, there is a law that allows.... hmmm, wait.. maybe it is only for payments with coins, not deposits....

 

[FUEGO]

I am surprised your credit union would accept that much in coins.... IIRC, there is a law that allows.... hmmm, wait.. maybe it is only for payments with coins, not deposits....

It has been an issue. I tried to deposit $8000 in coins at one time, and I had to call around to four credit union branches before I found one that would accept all the coins at one time. Apparently their vaults are very small and can't hold a lot of coins. The branches have asked that I call ahead of time before depositing large amounts of coin. I'll probably verify with the CU branches that they can accept more coins before I order another big shipment. I'm putting that 2% cashback fidelity rewards card to work with this little deal.

 

[ERD50]

This is the dumbest waste of money government idea I have seen in a while. ...

Get this - the mint overnights them by air using UPS. "Free" shipping for mint customers. These suckers weigh 46 pounds for every $2500 box.

This is the same govt that is telling us we need to cut our carbon emissions? Then they ship heavy coins by air?

So far I have made about $600 on this little deal plus a small amount of float (57 days on my latest batch of $11,000 in coins!).

It is tempting. I like "free money". But I'm trying to figure out how much time is involved. What % do you get on your cards? If it is one of those 3% ones, that would be $300 on a $10,000 purchase. But that is being available to sign for them (usually not a problem for us retired types), then lugging 184 pounds of stuff to a bank, and waiting while they transact that? Several trips, right? I guess it is worth it, I need to check out that PenFed card with 3% rewards....

-ERD50

 

[FUEGO]

This is the same govt that is telling us we need to cut our carbon emissions? Then they ship heavy coins by air?

It is tempting. I like "free money". But I'm trying to figure out how much time is involved. What % do you get on your cards? If it is one of those 3% ones, that would be $300 on a $10,000 purchase. But that is being available to sign for them (usually not a problem for us retired types), then lugging 184 pounds of stuff to a bank, and waiting while they transact that? Several trips, right? I guess it is worth it, I need to check out that PenFed card with 3% rewards....

Yes, I am glad you see the irony here. Overnighting these extremely heavy coins by air, then delivering on a diesel-fueled package van. Government efficiency at its finest. Who knows, maybe they are buying carbon offset credits?

I use a 2% cashback card. So $200 on a $10,000 purchase.

Check with your bank/CU to see if they will accept large coin deposits without fee. Also check to see what format they want coins to be in (rolled, unrolled, bagged in their coin deposit bags, etc).

I can carry a 46-50 lb box into the branch fairly easily and then while they are depositing, I can make a couple more trips to my car and back to the counter to get $7000-8000 deposited at one time. Yes, you may break a sweat! I think deposits of $2500 or less would draw less attention from tellers. I just tell them straight up what I am doing (us mint, free shipping, credit card rewards, free airline miles, etc).

Timewise, it is definitely good $ per hour. Deposits are usually 5-10 minutes in the branch, and there are generally branches all over where I am daily. Maybe 20 minutes if I have a bunch like $8000 at one time. I spend probably 20-30 minutes per $10,000 unboxing the coins, and hauling into/out of the house, etc. Then of course you have to take care of the ordering, keeping track of what you have ordered, etc. It really shouldn't take more than two hours in time for $10,000 in coins ($200 profit for me, plus some float). That is with my CU taking them already rolled (as they arrive to my door).

Definitely harder work than the 0% credit card arbitrage, but still decent money for relatively easy mindless work.

Also a good way to spend a chunk of change on a credit card for promotional deals. Such as the American Advantage cards from citicards that offer 30,000 reward miles if $750 in purchases are made within 4 months of opening the account. Como se dice viaje a Buenos Aires y Uruguay gratis?

 

[ERD50]

I use a 2% cashback card. So $200 on a $10,000 purchase.

Definitely harder work than the 0% credit card arbitrage, but still decent money for relatively easy mindless work.

Thanks for the info - I guess I need to jump on this. $200 for a little work is not something I should pass up, rinse-repeat. Just something surreal about buying/selling Legal Tender at profit. I'd feel a little guilty taking up the bank's time on the govt and my dime, but I'd get over it.

Definitely be appropriate to "laugh all the way to the bank"!

-ERD50

 

[FUEGO]

Thanks for the info - I guess I need to jump on this. $200 for a little work is not something I should pass up, rinse-repeat. Just something surreal about buying/selling Legal Tender at profit. I'd feel a little guilty taking up the bank's time on the govt and my dime, but I'd get over it.

Definitely be appropriate to "laugh all the way to the bank"!

Yes, fairly easy. Make sure your bank can take them. Otherwise easy relatively risk free money.