is there any way to gage how much hoarded change is making its way back into circulation?
291fifth
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I can hear those piggy banks being broken open ...
All glory is fleeting.
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TD
<< <i>Check Coinstar's annual reports. Billions of coins handled per year.
TD >>
Increasingly, I don't get this CoinStar thing. I can take loose change to my bank and get 100% back. Why give up 8% (or whatever)?
<< <i>
<< <i>Check Coinstar's annual reports. Billions of coins handled per year.
TD >>
Increasingly, I don't get this CoinStar thing. I can take loose change to my bank and get 100% back. Why give up 8% (or whatever)? >>
Why even accumulate loose change? Just spend it as you get it.
Worry is the interest you pay on a debt you may not owe.
"Paper money eventually returns to its intrinsic value---zero."----Voltaire
"Everything you say should be true, but not everything true should be said."----Voltaire
It is same reason people pay 10-100% more for milk, bread, etc at 7-11 rather than buying at supermarket.
is there any way to gage how much hoarded change is making its way back into circulation?
....one way is try and get new rolled coins from the bank.
be coins brought in by customers, sent back to the reserve, then returned wrapped for re-circulation for the bank
customers.
Difference would be a rough guide to combination of decrease in demand and return of coins from hoards to circulation.
That and roll searching should show an increase in frequency of earlier dates.
These are all net flows and it's very difficult to see any of them from the outside. The best bet
might be to call up your local FED and just ask.
You have to know the change in the needs of commerce and this is simply invisible. We know that
the reduced mintages are sufficient to fill the gap and can suppose they are likely more than suf-
ficient. In all probaboility there is a net flow back to the treasury from this alone even before new
redemption of coin from the public is factored in.
Probably the best indicatoir is penny production. This worthless little coin provides a lot of clues
simply because it is worthless. Even someone in dire straights has no neesd to haul pennies to
the bank so the rate at which they get circulated from home to bank doesn't change as radically
as the economy. Mintage here is still in the 7B per year vicinity which suggests perhaps a 15%
or so reduction in coinage needs above and beyond changes in coin usage and and changes in
this usage (pennies are being used less). This suggests that coin stocks at the FED are becoming
rather considerable with perhaps as many as 6 or 7 billion quarters under lock and key. From ob-
servation it appears that about 1% of the quarters in circulation are there for the first time in more
than three years so The "total hoard" held by the public has probably been reduced from around
10 billion to 5 billion coins. There's a lot of guesswork here of course. It should be remembered
that the quarters held by the public are almost entirely coins that have been held for three years
or less. Very few people ever hold onto any quarters for a longer period. If they did then you
could find high grade early coins of random dates in circulation and you can't. You can find old high
grade quarters but they are confined strictly to specific dates.
Essentially what happens is that the average number of coins held by the public goes up and down
with the economy. Almost everyone gets rid of their coins when they start taking up too much
space but when the economy is sour more people turn them over more quickly. When the economy
rebounds the quarters will flow back out of the vaults fairly quickly.
What is in the vaults looks just like what's in circulation. There is a somewhat higher incidence of
brand new coins and uncs. There will also be significant numbers of coins straight from the mint
up to three years old. All these coins will appear a little dark or dirty when they come out of stor-
age sometimes but quickly clean up in circulation.
I might be overstating the number of coins being held but these things are much easier to gauge
after the fact usually.
<< <i>If you see a lot of Bicentennial Quarters, that ususally is an indicator of hoarded change being turned loose. >>
I'm not certain this is true but there are an awful lot of these coming back
into circulation now. It started 10 years ago but is really picking up steam.
About 40% of mintage appears to be in circulation now and a few are fin-
ally starting to show their age.
Just in the last couple years these have made a big jump.
TD >>
Increasingly, I don't get this CoinStar thing. I can take loose change to my bank and get 100% back. Why give up 8% (or whatever)?
for the convenience of dumping in the unrolled, uncounted bucket of coins in the hopper, and getting a receipt seconds later that cashes and/or spends like cash right at the store.
same reason people pay "convenience fees" for prepared food, lawn care, clothes, etc. Why give up the fees when you can grow, cut, sew your own?
Liberty: Parent of Science & Industry
<< <i> Check Coinstar's annual reports. Billions of coins handled per year.
TD >>
Increasingly, I don't get this CoinStar thing. I can take loose change to my bank and get 100% back. Why give up 8% (or whatever)?
for the convenience of dumping in the unrolled, uncounted bucket of coins in the hopper, and getting a receipt seconds later that cashes and/or spends like cash right at the store.
same reason people pay "convenience fees" for prepared food, lawn care, clothes, etc. Why give up the fees when you can grow, cut, sew your own? >>
Suit yourself. I dump unrolled, uncounted buckets at the bank and save the 8%. The other analogies are silly, IMO.
Liberty: Parent of Science & Industry
<< <i>oh, I know they're silly.
Value of convenience is worth of time x units of time saved.
A man who's time is worth $100 hr would spend $100 time equiv. mowing his lawn for 1 hr.
A seperate 15 minute trip to bank would cost him $25 in time.
To save 8% coinstar fee he would need to deposit in banks free counting machine $300+ in change.
I could easily do the vast majority of things I pay others to do but it would be a poor use of my time.
I actualy paid a kid $8/hr to take 25K in loose GW dollars to bank a few years back.......money well spent.
Now before anyone rises to the bait to say they value time at far less than $100/hr let me say that we as a society and as individuals frequently pay far more for time and we pay it when the worth of the time is far less. It is very common for people in terminal condition to spends tens of thousands of dollars to prolong their lives by a few weeks or a couple of months.
If I could guarantee you 1 extra day of life with no change in overall quality of that life how many days would you buy for $100/day?? $1000/day?? Most would buy all the extra days they could for $100 day...............many frequently trade a lifetime of savings for little more than the hope for some additional measure of time so don't be too quick to discount the value of convience if it saves you time.
And yes, I have even found a couple of stray silver Roosies in the reject bin.
I bought a few v-nickels last week and took in 20 rolls of pres dollars. The bank said they had to bust the rolls to cash them in. This year i am putting 100 dollar bills back.
NGC registry V-Nickel proof #6!!!!
working on proof shield nickels # 8 with a bullet!!!!
RIP "BEAR"
<< <i>
<< <i> Check Coinstar's annual reports. Billions of coins handled per year.
TD >>
Increasingly, I don't get this CoinStar thing. I can take loose change to my bank and get 100% back. Why give up 8% (or whatever)?
for the convenience of dumping in the unrolled, uncounted bucket of coins in the hopper, and getting a receipt seconds later that cashes and/or spends like cash right at the store.
same reason people pay "convenience fees" for prepared food, lawn care, clothes, etc. Why give up the fees when you can grow, cut, sew your own? >>
Suit yourself. I dump unrolled, uncounted buckets at the bank and save the 8%. The other analogies are silly, IMO. >>
My bank in Michigan won't take anything but rolled coins. Over in Illinois, they won't take anything but unrolled coins (at the bank my brother uses.)