$1 coins: Unwanted, unloved and out of currency

$1 coins: Unwanted, unloved and out of currency

http://www.cnn.com/2013/11/28/us/one-dollar-coins/index.html?hpt=us_c1

Rowan Barcham

Why do Americans value the penny over the $1 coin the value of the latter is clearly much higher? Why are Americans more adamant about collecting pennies off the ground? Where did all the $1 coins go? The inventory of the Federal Reserve Banks, of course. They hold nearly $1.4 billion in Sacagawea coins, enough of a supply for the next 4 decades.

Most of the minted $1 coins live within the government vaults, but more were returned to the Federal Reserve Banks just last year. Initial distribution of these coins began in 2007, until 2011 when the mint ceased producing anymore. This was due to the lack of public desire. Although these durable currencies outlast the durability of $1 bills, the bills are always the winner in preference. 

According to research, the federal government would save roughly $150 million a year should Congress decide to make the switch to metal. Should this plan come to fruition, the extinction of $1 bills would slowly creep upon the nation. The fact is, these $1 coins serve no purpose for businesses or financial institutions. It is also not effective as a means of taxpayer resources, according to the Treasury Department. 

I spent a summer in Peru two years ago, where I was frequently using Peruvian coins to make my purchases. These coins were largely preferred by the natives. They would only ever use bills for larger purchases. These coins were smaller, more portable, and frankly, more durable than the bills. I believe that if we could institute the $1 coins into our system, it could cater a variety of benefits to us Americans. Although it is no trivial matter to experiment with, I feel like it could ultimately help us with its durability, transportability, and value.