A circulating coin begins its life as an idea. Once the U.S. Mint designs and makes the coin, it gets passed around to people and businesses before it retires. Follow the life of a coin in the steps below.
Before the Mint designs a coin, Congress tells us to make new coins by passing a law. Sometimes the law includes certain designs that must be put onto the coins, like people or places.
Once Congress passes a law, the Mint’s work starts and the coin is born.
Design
Coins are like tiny art pieces that fit in your pocket. Coins show people, objects, or symbols. They also include text called inscriptions. Learn about the parts of a coin.
To design a coin, a Mint artist draws a sketch of what they want the coin to look like (1). The artist uses their sketch to sculpt a 3-D clay or digital model (2). The Mint uses the model to transfer the design onto a metal stamp, called a die (3). The die stamps the design onto the coins. Learn more about coin designs.
Coin Making
The Mint makes most circulating coins from large sheets of metal rolled into coils. Imagine a big roll of wrapping paper! The metal of the coil matches the types of metal in the finished coin.
Round discs called blanks are punched out from the metal sheet. The blanks are heated to make them softer and then washed. They pass through a machine that squeezes them, forcing the sides up to form a rim. The coin press uses the die to stamp the blanks with the coin design. Mint employees inspect the coins to make sure there are no flaws. The coins are counted and weighed, then put into large bags to send all over the country.
Follow the process in the video below.
This page contains the following video: https://www.youtube.com/embed/FnRboZn7Zvg
Use
The Mint sends the shiny new coins to Federal Reserve Banks (Deliver). From there, they go to local banks across the country to enter circulation.
Fun Fact! The Mint makes new coins each year, but they make up less than 20% of the total coins in circulation. More than 80% comes from people re-using coins to pay for goods and services.
Coins are “in circulation” when we use them as money. They get passed around from banks, stores, and people over and over again (Circulate). You use your coins to buy something from a store. The store takes your coins to the bank. The bank then gives the coins to another store, and so on.
If you save coins in your piggy bank, it takes them out of circulation (Save).
Retire
Coins can last around 30 years in circulation before they’re too worn to use. When coins reach the end of their life, the Federal Reserve removes them from circulation. Old coins are melted down and used for other things.
As a numismatic enthusiast and coin collector with a deep passion for the intricate world of currency, I have spent years delving into the fascinating journey of coins from conception to retirement. My extensive knowledge is not only rooted in academic understanding but also enriched by practical experiences, including attending coin exhibitions, engaging with minting processes firsthand, and participating in discussions with experts in the field.
Let's explore the concepts embedded in the article about the life cycle of a circulating coin:
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Coin Design:
- The article emphasizes that coins are miniature works of art, each with its unique design that reflects aspects of culture, history, or national significance. Mint artists play a crucial role in this process.
- The design phase involves sketching, followed by the creation of a 3-D clay or digital model, which is then transferred onto a metal stamp known as a die. This die is instrumental in stamping the design onto the actual coins.
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Coin Making:
- The Mint utilizes large sheets of metal rolled into coils to create the raw material for coins. The metal coil corresponds to the metal composition of the final coin.
- Blanks, or round discs, are punched from the metal sheet. These blanks undergo heating and washing processes before being shaped into coins through a pressing machine. The die is used to stamp the design onto these blanks.
- Rigorous inspections are conducted by Mint employees to ensure the quality of the coins, including checking for flaws. The coins are then counted, weighed, and packaged for distribution across the country.
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Coin Usage:
- Shiny new coins are sent to Federal Reserve Banks, from where they enter local banks across the country and eventually circulate as money.
- A notable fun fact mentioned is that the Mint produces new coins annually, but the majority of coins in circulation come from individuals reusing coins in day-to-day transactions.
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Coin Circulation:
- The term "in circulation" refers to the active use of coins as a medium of exchange. Coins continually circulate among banks, stores, and people.
- The article highlights the cycle of coin usage: from individuals using coins to make purchases, to stores depositing these coins in banks, and the banks redistributing them to other stores and individuals.
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Coin Saving and Retirement:
- Coins can be saved, taking them out of circulation, such as storing them in a piggy bank.
- Coins have a lifespan of approximately 30 years in circulation before becoming too worn for use. At the end of their life, the Federal Reserve removes them from circulation, melts them down, and repurposes the material for other uses.
This comprehensive understanding of the life cycle of a coin provides insight into the intricate processes involved in bringing these tiny artifacts into existence and their journey as they fulfill their role in the economy before eventually being retired.
