$1 Gold Coin Update

It's been awhile since I gave you all an update on what I'm doing with gold $1 coins (if you want to see the last update, read Update on My Gold Coin Purchases). For those of you new to this issue, I'm talking about the $1 coins the US Mint is issuing in an attempt to replace the $1 bill. They are gold in color but are NOT made of gold (hence their value is $1 each.) For more on them, see this link. 

I'm still buying gold $1 coins in rolls of 25 (minimum box is $250.) They ship these to me free of charge. I charge them on my Visa and earn 2% cash back. I'll give you an update on how much I've ordered for sure when I do a credit card rewards summary in January, but as of now I've bought $6,500. Since I get 2% back on everything I charge, that means I've earned $130 in credit card rewards cash simply by buying these. :-)

My only commitment to the US Mint is that I do not simply take these coins and deposit them back in the back. I have to USE them (get them into circulation). As you might imagine, getting rid of $6,500 in coins is not an easy thing (especially when we spend most of our money via credit cards -- which we pay off every month BTW.) But here's what I've done so far to get rid of a good number of coins:

• I gave a bundle of them to our church as part of my annual giving. Since they are cash, I took them into the office and waited while they were counted. Then I got a receipt for them so I could be sure and get the appropriate tax deduction.

• We're still giving out blessing boxes. These continue to be great fun and a unique way to give people a gift.

• In addition to blessing boxes (that are for those in need), we give gold $1 coins for birthdays, showers, wedding presents, etc. We put them in some sort of a unique box or container that is a gift as well (it can be reused for something.) This is a nice way to give cash without being so boring by giving "plain old" paper money (and people really seem to love the gold coins.)

• Toll booths are a great way to use these coins.

• "Small purchases." I keep some of these in my car so when we stop for fast food, a quick drink somewhere, or even a movie (I give everyone their own coins to carry so I'm not walking in jingle jangling like someone who just robbed a bank) the coins are handy to use.

• I am keeping an emergency stash of coins in my house. I figure if there's some sort of disaster (like a fire or flood), the coins won't burn/be destroyed and will give us some quick cash we might need.

• The coins are GREAT for tips. I usually leave two or three per night I'm in a hotel. I never get to see the response of those receiving the coins, but I bet they appreciate them.

Anyone else out there doing the same thing? How to you use the coins? Or if you have some suggestions on how I can use them, please give me your thoughts in the comments below.

P.S. Here's a research report of the US Mint's test market results for the gold coins. Anyone else find it interesting that Grand Rapids' results are better on almost every measure? Can I get a thank you from the US Mint, now? ;-)

Comments

[MelMoitzen]

FMF,

I can't see where they ship free of charge anymore. I remember they did when I first bought these well over a year ago, but now when I try to order I can't seem to get around the $4.95 shipping charge. What am I missing?

I work near the U.S. Mint store and have been buying them from there whenever I pass by. They don't offer rolls that can be bought via credit card, but they dispense them with a change machine.

In addition to using them for all my own purchases <$5, they still come in very handy at the beach and pool where my son can keep them in the pocket of his wet bathing suit and easily use them for ice cream or in the soda machine.

[FMF]

Mel --

When you order, there is shipping initially added. Then it's taken off on the very last screen before you submit your order.

[MelMoitzen]

Thanks, FMF, worked like a charm.

Also worth noting that recent changes in credit card rules mean that merchants can soon (legitimately) require a minimum purchase of no more than $10 to use one. Many of us who are used to charging pretty much everything may find ourselves paying small amounts of cash at familiar places where we haven't.

Using coins obtained with a credit card for these purchases essentially yields you rebate benefits on cash expenditures. When the tooth fairy leaves my kids $1 under their pillows, I believe he takes comfort in knowing it really only cost him 98¢. :-)

[rickytom]

With the price of gold going up so much, one wanders what to do? I must admit I am a bit lost and will keep my savings in cash for the next few months.

[spivey]

This test program is cute but I don't think most Americans will use the $1 coins on a regular basis until the paper $1 bills are removed from circulation. We should definitely do that, and while we're at it, I think we should get rid of pennies, nickels, and maybe dimes.

In 1857, the last year the half-cent was minted, it was worth approximately $0.12 in today's money. We should really eliminate the waste involved with minting and using small change.

[Hong]

In Santa Monica, the beach parking can be paid using these coins. I play a lot of beach volleyball so these coins get great use!
Also, I generally pay for anything under $5 with these coins. I figure it saves the merchants because they don't have to pay the credit card processing fee (they are charged a flat fee plus a % of purchases by the card issuer) and I get my credit card rebate too!

[Chase]

I take them right to the bank. Sure it might possibly violate the mint's rules, but the bank doesn't mind!

[MBTN]

In school my son's class is learning about counting coins so now he is intrigued by coins. I told him that they have a dollar coin, but he didn't believe me. So I took him to the bank and asked for a roll of dollar coins. I opened up the roll and gave him one and his jaw dropped! He said that he couldn't spend it, though, since it was a "rare treasure", so now he has it in his special treasure box.

[Sarah]

We use them when we pay the neighborhood boys (age 8 and 10) across the street. Every time we leave town they check up on the dog, and take him for a walk for the few days we are gone. We usually do a mixture of the bills and the coins. they get a kick out of them though.

There is a parking garage here in Cleveland that uses an automated teller to pay at the end. When you put cash in, it gives the coins back as change.

We also were using them in birthday gifts to nieces / nephews, but now that we live further away I think bills in a birthday card would be easier to mail.

[Eric]

Unfortunately it is too cumbersome to carry around a bunch of coins in my wallet. It just wouldn't work for me.

[Mandi]

Sarah - which parking garage in Cleveland did you get them from? Do you know the name of the managing company of the automated teller machine?

[TaJ]

I found they resolved the tension between wanting to get the best credit card rewards when buying things and not wanting to stick local businesses with the card processing fees. The $1 coins are basically the only cash I use now (though I carry some $20s for emergencies) and I make a lot of my purchases with them.

I also found that having to go the extra steps to tap the "government ATM" made me slightly more aware of my spending, whereas when I tapped the bank ATM it wouldn't really register at all.

[Ugly American]

The $1 coins are almost worthless because they don't work in vending machines.

The companies that make coin acceptors told the government ahead of time what would work in existing coin acceptors but the government ignored them again, just like the Susan B Anthony.

We should also drop the penny and the .50 - they don't work in vending machines either.

[Harm]

I think some of your readers might want a reminder,
these are GOLDEN coins, NOT gold coins.

[Kathy F]

The dollar coins work in the soda vending machines in my work building. But then it's a Federal Government building.....

[Robert M]

I don't think giving them to the church counts. You know the church is just going to turn around and deposit the whole kit and kaboodle in the bank.

I only bought $250 worth and it's probably going to take at least a year to off-load them.

[andy]

is this true that it will be charged as as cash advance?

[FMF]

Andy --

No. See:

http://www.freemoneyfinance.com/2010/03/gold-dollar-coins-not-treated-as-cash-advance-on-my-credit-card.html

[Josh Stein]

As of 7/22, the US Mint eliminated this program. Just as I was going to start doing it, of course.

Maybe the feds should all get together and do the one thing to ensure people use the $1 coin (e.g. stop making $1 bills; I know the mint doesn't make the bills, so they can't do that).

http://catalog.usmint.gov/webapp/wcs/stores/servlet/CategoryDisplay?langId=-1&storeId=10001&catalogId=10001&identifier=8100