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 an enthusiast with a deep understanding of the coin minting process, I can provide valuable insights into the life cycle of a circulating coin. My expertise is grounded in a comprehensive knowledge of numismatics, the study and collection of coins, as well as a keen interest in the intricate details of coin design, production, and circulation.
Coin Design: The process of bringing a coin to life begins with a meticulous design phase. After Congress passes a law authorizing the creation of new coins, Mint artists take the lead. These skilled individuals transform ideas into tangible sketches, capturing the essence of the coin's intended appearance. From these sketches, a 3-D clay or digital model is crafted, serving as the basis for the metal stamp, or die, that will imprint the design onto the coins. This design stage showcases the artistic and creative aspects of coin production, transforming them into miniature works of art that tell stories through images, symbols, and inscriptions.
Coin Making: Once the design is finalized, the Mint moves into the coin-making phase. Most circulating coins are crafted from large sheets of metal rolled into coils. These coils, akin to rolls of wrapping paper, are the source material for creating round discs known as blanks. These blanks undergo a series of processes, including heating, washing, and pressing, to shape them into coins with distinct rims and intricate designs. Mint employees meticulously inspect each coin to ensure quality, and the finished products are counted, weighed, and then distributed in large bags to banks across the country. This phase combines elements of metallurgy, engineering, and craftsmanship to produce the physical currency that enters circulation.
Coin Use: The journey of a coin continues as the Mint dispatches the newly minted coins to Federal Reserve Banks, initiating their entry into circulation. From there, the coins make their way to local banks, stores, and eventually into the hands of individuals. A fascinating fact emerges at this stage – while the Mint produces new coins annually, the majority of coins in circulation, over 80%, come from the continuous reuse of existing coins in transactions. The circulating coins become integral parts of daily economic exchanges, moving through various channels such as banks and stores as people engage in transactions.
Coin Retirement: Coins, durable as they may be, have a finite lifespan of around 30 years in circulation. As they accumulate wear and tear, the Federal Reserve identifies and removes them from circulation, marking the retirement phase. These retired coins undergo a process of melting down, and the recycled metal is repurposed for other uses. This sustainable approach ensures that even after their active life in circulation, coins contribute to the creation of new materials.
In summary, the life of a circulating coin involves a fascinating journey from conceptualization and design to production, distribution, and eventual retirement. This intricate process combines artistic creativity, technical expertise, and economic principles, shaping the tangible currency that plays a crucial role in our daily lives.
