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How come a silver coin is so cheap to make?

tneigtneig Posts: 1,505 ✭✭✭
in Precious Metals
If the below list is what it cost to make the US coinage, how come a silver coin cost to make is so low?
Are they getting raw silver at some special rate?


Cost of Producing the Penny, Nickel, Dime, Quarter, and Golden Dollar Coins.
$1 Coin 18.03 cents
Quarter 11.14 cents
Dime 5.65 cents
Nickel 11.18 cents
Penny 2.41 cents
COA

Comments

  • OPAOPA Posts: 17,121 ✭✭✭✭✭


    << <i>If the below list is what it cost to make the US coinage, how come a silver coin cost to make is so low?
    Are they getting raw silver at some special rate?


    Cost of Producing the Penny, Nickel, Dime, Quarter, and Golden Dollar Coins.
    $1 Coin 18.03 cents
    Quarter 11.14 cents
    Dime 5.65 cents
    Nickel 11.18 cents
    Penny 2.41 cents >>



    None of your coins on your list are "silver coin". The $1 coins are not the ASE's, but the Sac or Presidential...that's why it's so cheap
    "Bongo drive 1984 Lincoln that looks like old coin dug from ground."
  • PerryHallPerryHall Posts: 46,140 ✭✭✭✭✭
    None of the coins listed are silver as stated in your thread title. Generally, clad coins are more expensive to make than coins with a uniform composition and larger coins are more expensive to make that smaller coins.

    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

  • PerryHallPerryHall Posts: 46,140 ✭✭✭✭✭
    Double post. Sorry.

    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

  • secondrepublicsecondrepublic Posts: 2,619 ✭✭✭


    << <i>If the below list is what it cost to make the US coinage, how come a silver coin cost to make is so low?
    Are they getting raw silver at some special rate?


    Cost of Producing the Penny, Nickel, Dime, Quarter, and Golden Dollar Coins.
    $1 Coin 18.03 cents
    Quarter 11.14 cents
    Dime 5.65 cents
    Nickel 11.18 cents
    Penny 2.41 cents >>



    I assume these are the costs of materials (metal) plus manufacturing costs.

    For silver coins such as bullion ASEs, they're buying planchets from somewhere - presumably at the market price for the metal plus a small premium. Once they have the planchets the minting cost is probably quite small.
    "Men who had never shown any ability to make or increase fortunes for themselves abounded in brilliant plans for creating and increasing wealth for the country at large." Fiat Money Inflation in France, Andrew Dickson White (1912)
  • rickoricko Posts: 98,724 ✭✭✭✭✭
    Do you have comparable prices if those coins were struck in silver?? Cheers, RickO
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