Currently, there are billions of dollars in coins circulating right now. We all own coins in some quantity for one reason or another, and also know that they are minted and that they circulate. What does circulation really mean when it comes to coins, and how do they go about circulating? One major way that coins circulate is through the millions or billion of cash transactions that occur every day across the country. Coins either go, from the consumer to the seller, or from the seller to the consumer. Through this process, coins go from one person to another thousand of times throughout their lives and circulate in that manner. Typically, throughout our lives we tend to have some moment where we have a massive stash of coins, being coin collectors or not from these transactions. At this point, we know that we have money, but often times the denominations of coins are too small to do much, and the quantity is too great to use them in everyday transactions. At this point, we take them to a location that will accept them which is typically either a Coinstar machine, or a bank; where we deposit these coins for cash, and whenever this occurs the facility that we deposited them at has to do something with them. Of course, the US mint also plays a massive and the most important role in the circulation of coins. After they produce coins at one of their mints, they ship them to federal reserve banks and their various branches. After this point, they distribute the coins to commercial banks depending on the demand that they have for them, which arises from the demand that comes from the public. Amazingly, our mint actually varies its production of coins throughout the year, because the demand for them varies at different times of the year, which helps them distribute a proper flow of them into circulation. Throughout the years this process continues, where more and more new coins are put into circulation, and more and more of the older ones are taken out, where sometimes wheat back pennies from the 1940s or even the 1930s can be found, and if you are really lucky; you may find a silver coin. By: Brandon Spiegel, Owner, and Founder of Let's Start A Coin Collection file:///C:/Users/brand/Downloads/google1e750597dd8642a3%20(3).html
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Author: Brandon Spiegel.
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