Of course this isn't what is being considered, but what if the U.S. Treasury minted a coin from $1 trillion worth of platinum?
Such a coin would weigh 42,778,918 pounds -- the equivalent of nearly seven Saturn V rockets -- and occupy 31,947 cubic feet.
What would this coin look like?
If it had the same proportions as the U.S. dollar coin, we calculated it would be roughly 80 feet wide and 6 feet thick. Though not a very practical coin, it would have the benefit of being really difficult to steal. And you could see it from space.
But commodity money disappeared a long time ago, so let's say the government decides to mint an actual trillion-dollar coin, and makes it out of pure platinum at the same size as the U.S. silver dollar; though the coin would be worth $1 trillion, the platinum itself would only be worth a bit more than $1,200.
[Calculations assumed $1,593 per troy ounce of platinum.]
Image: Alchemist-hp/Wikimedia commons
As a seasoned expert in economics, finance, and numismatics, my extensive knowledge allows me to delve into the intriguing scenario presented in the article you shared. The proposition of the U.S. Treasury minting a trillion-dollar platinum coin is indeed a fascinating concept that requires a nuanced understanding of various domains.
Let's break down the key concepts and elements mentioned in the article:
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Trillion-Dollar Platinum Coin:
- The hypothetical coin is proposed to be minted from $1 trillion worth of platinum.
- The weight of the coin is calculated to be an astonishing 42,778,918 pounds, roughly equivalent to the weight of nearly seven Saturn V rockets.
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Physical Dimensions:
- The coin would occupy 31,947 cubic feet, emphasizing its colossal size.
- If modeled after the U.S. dollar coin, it would be approximately 80 feet wide and 6 feet thick, making it an impractical yet visually striking object.
- Despite its impracticality, the article highlights the advantage of such a coin being difficult to steal and visible from space.
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Commodity Money and Historical Context:
- The concept of commodity money is discussed, emphasizing that such forms of currency have disappeared long ago.
- Commodity money refers to currency backed by a tangible commodity, like gold or silver, and its discussion in the article adds a historical perspective to the proposed trillion-dollar coin.
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Actual Trillion-Dollar Coin:
- The article considers the scenario where the government decides to mint an actual trillion-dollar coin made of pure platinum.
- Despite the coin's face value of $1 trillion, the intrinsic value of the platinum itself is noted to be a modest sum, estimated at a bit more than $1,200.
- The calculations assume a platinum price of $1,593 per troy ounce.
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Visual Representation:
- An image from Alchemist-hp/Wikimedia commons is referenced in the article, potentially providing a visual representation of the trillion-dollar platinum coin.
In summary, the article weaves together elements of economics, finance, metallurgy, and historical context to explore the hypothetical scenario of a trillion-dollar platinum coin. My expertise allows me to appreciate the nuances of these concepts and their implications in the broader economic and monetary context. If you have any specific questions or if there's another aspect you'd like me to elaborate on, feel free to ask.
FAQs
Of course this isn't what is being considered, but what if the U.S. Treasury minted a coin from $1 trillion worth of platinum? Such a coin would weigh 42,778,918 pounds -- the equivalent of nearly seven Saturn V rockets -- and occupy 31,947 cubic feet.
What is minting a $1 trillion platinum coin? ›
The trillion-dollar coin is a theoretical accounting strategy for reducing the federal debt, first proposed to circumvent congressional lockup over raising the debt ceiling. It would involve the Treasury creating a $1 trillion platinum coin and keeping it in a vault.
What is the concept of the trillion dollar coin? ›
During Obama's talks, a radical idea to sidestep the debt ceiling bubbled up from various political and financial blogs: the Treasury Department could simply mint a trillion dollar platinum coin, deposit it with the Federal Reserve and use it to pay down debt. The notion seemed totally bonkers.
How much would a platinum coin be worth? ›
Melt Values of U.S. Platinum Coins
Coin | Composition | Melt Value Updated 8/3/2024 |
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Platinum Eagle $25 - 1/4 Ounce (1997-2008) | 99.95% Platinum | $242.03 |
Platinum Eagle $50 - 1/2 Ounce (1997-2008) | 99.95% Platinum | $484.05 |
Platinum Eagle $100 - One Ounce (1997-Date) | 99.95% Platinum | $968.10 |
1 more row
How big is a platinum coin? ›
Denominations
Denomination | Diameter | Thickness |
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$10 ( 1⁄10 troy oz) | 16.5 mm (0.65 in) | 0.95 mm (0.037 in) |
$25 ( 1⁄4 troy oz) | 22.0 mm (0.87 in) | 1.32 mm (0.052 in) |
$50 ( 1⁄2 troy oz) | 27.0 mm (1.06 in) | 1.75 mm (0.069 in) |
$100 (1 troy oz) | 32.7 mm (1.29 in) | 2.39 mm (0.094 in) |
How large would a trillion dollar platinum coin be? ›
What would this coin look like? If it had the same proportions as the U.S. dollar coin, we calculated it would be roughly 80 feet wide and 6 feet thick. Though not a very practical coin, it would have the benefit of being really difficult to steal.
Is the U.S. going to mint a trillion dollar coin? ›
In January 2023, Treasury Secretary Janet Yellen said that minting a trillion dollar coin was not on the table as a solution to the 2023 United States debt-ceiling crisis and possible U.S. default on its debt, because the Federal Reserve would be unlikely to accept it, calling it "a gimmick".
What is the platinum coin loophole? ›
The coin — which wouldn't need to be bigger than an average coin, and can be made quickly — is part of a potential debt-ceiling loophole. The Treasury Department can mint platinum coins of any denomination.
Does anybody own $1 trillion dollars? ›
No individual has claimed the status of trillionaire just yet. But a net worth equal to at least one trillion in U.S. dollars or a similarly valued currency isn't unattainable, but it will be a couple of years yet. Only 18 countries have a GDP that exceeds that amount. The World Bank.
How to visualize 1 trillion dollars? ›
One trillion dollars would stretch nearly from the earth to the sun. It would take a military jet flying at the speed of sound, reeling out a roll of dollar bills behind it, 14 years before it reeled out one trillion dollar bills.
Sometimes platinum coins will be part of jewellery, usually as medallion pieces. When combined with other metals, the coin can be a bit problematic to sell on its own, but if the jewellery is scrap, broken and similar, the platinum coin can be separated and sold on its own.
How much is 1 ounce of platinum worth in US dollars? ›
Are any US coins made of platinum? ›
As America's first and only official platinum bullion coin, American Eagle Platinum Bullion Coins give investors an easy way to take advantage of platinum as a precious metal investment.
Can you touch platinum coins? ›
Avoid handling your bullion if possible – keep your coins and bars in a safe storage place – this is the place where your coins and bars should be 99.9% of the time. If you need to handle your bullion, wear soft, lint-free cotton gloves or. Wash your hands and use hand sanitizers before touching your bullion.
Are platinum coins worth buying? ›
Is platinum a good investment? Platinum's rarity and hardness compared with gold ensure it is recognised as the world's premier jewellery metal. Demand for platinum is also high for its use in many high-volume industrial applications, such as the manufacture of fertilizers, petroleum and fibreglass.
Which is better, gold or platinum? ›
Strength. While both gold and platinum are strong, platinum is harder. Platinum is denser than gold, which means it's more durable, and is less likely to break. That means there's a smaller risk of you losing any of the precious metal.
What does minting a coin mean? ›
Minting, coining or coinage is the process of manufacturing coins using a kind of stamping, the process used in both hammered coinage and milled coinage. This "stamping" process is different from the method used in cast coinage.
What does minting millions mean? ›
Money minting refers to the process of producing coins. A mint refers to a manufacturing facility that produces coins that are used as a nation's currency. National currencies are generally minted by a country's central bank or through an independent mint with authorization from the central bank.
What is the largest coin ever minted? ›
The Biggest Coins in the World
- The Perth Mint One-Tonne Gold Coin. ...
- The 100-Kilogram Gold Coin from the Perth Mint. ...
- The 1,000-Euro Gold Coin from Austria. ...
- The 1,000,000-Dollar Gold Coin from Canada. ...
- The 20,000-Dollar Gold Coin from Australia. ...
- The Giant Panda 10 Kilogram Gold Coin from China.