US Minted Coins - Is this a safer currency than Federal Reserve Dollars or paper money currency

Since the Fed Buy coins from the US Mint

Are these like Treasury notes and perhaps safer if the dollar collapses.

I know this discussion has been around before but I do not remeber any specif conclusions..

[link to www.federalreserve.gov]


Coin
The Federal Reserve's role in coin operations is more limited than its role in currency operations. As the issuing authority for coins, the United States Mint determines annual coin production. The Reserve Banks, however, influence the process by providing the Mint with monthly coin orders and a 12-month rolling coin-order forecast. The Mint transports the coin from its production facilities for circulating coin in Philadelphia and Denver to all of the Reserve Banks and the Reserve Banks' coin terminal locations.

The Reserve Banks distribute new and circulated coin to depository institutions to meet the public's demand. While the Reserve Banks store some coin in their vaults, they also contract with coin terminals to store, process, and distribute coin on behalf of the Federal Reserve. Armored carrier companies generally operate the coin terminals; the coin terminals have improved the efficiency of the coin-distribution system.

Federal Reserve Accounting for Currency and Coin
Federal Reserve notes are liabilities on the Federal Reserve's balance sheet. These liabilities are collateralized by the assets of the Federal Reserve Banks.

Coin held by the Reserve Banks is an asset on the Federal Reserve's balance sheet and the Federal Reserve buys coin from the Mint at face value. When a depository institution orders and deposits coin from its Reserve Bank, the institution's account balance is adjusted accordingly.

Last Edited by ISLANDIA on 06/03/2012 11:51 PM