Is there still a coin shortage?

[Mauserman]

I called my bank today to get a box of pennies. I was able to get one from them about a month ago but this time they rolled out the shortage excuse. “We don’t have any any and got an email about another coin shortage. We’ll try to order a box if you want but they haven’t filled all our orders recently and we might not be able to get it.” Something like that.

Seems like a load of bs at this point. Everything in the economy has been back to normal for a while and there’s absolutely zero transportation or network issues. I think they’re using this as an excuse to not have to bother with supplying coins now.

Any thoughts on an “ongoing shortage?”

[hirbonzig]

Yes it is a load of BS. Plenty of coin around. Ask for paper money, there’s a $&!) ton of that worthless crap laying around.

[JadeDragon]

Are U.S. coins in short supply?

There is currently an adequate overall amount of coins in the economy. But business and bank closures associated with the COVID-19 pandemic significantly disrupted the supply chain and normal circulation patterns for U.S. coins. This slowed pace of circulation reduced available inventories in some areas of the country during 2020.

The Federal Reserve continues to work with the U.S. Mint and others in the industry to keep coins circulating. As a first step, a temporary cap was imposed in June 2020 on the orders depository institutions place for coins with the Federal Reserve to ensure that the supply was fairly distributed. While those caps have now been removed, coin circulation patterns have not fully returned to pre-pandemic levels. We continue to closely monitor orders and deposits from financial institutions as well as U.S. Mint production. The U.S. Coin Task Force, which was formed in July 2020 to identify, implement, and promote actions to address disruptions to coin circulation, will continue to meet regularly until coin circulation normalizes.

Since mid-June of 2020, the U.S. Mint has been operating at full production capacity. In 2020, the Mint produced 14.8 billion coins, a 24 percent increase from the 11.9 billion coins produced in 2019.

As the economy recovers and businesses reopen, more coins will flow back into retail and banking channels and eventually into the Federal Reserve, which should allow for the further rebuilding of coin inventories.

Source: https://www.federalreserve.gov/faqs/why ... ortage.htm

Around me there is a noticeable drop in cash transactions. A few businesses simply don’t accept cash anymore and many are encouraging card payments (fast food especially). Without dine in open there are likely less cash tips. There is plenty of coin overall but it is not moving around like it used to. That creates a supply problem.

Part of the broader economic concept of the velocity of money, if the money does not change hands very often there tends to be supply problems. Think of the 50 cent piece. There are plenty of 50 cent pieces out there (far exceeding demand) but just try to find a $1000 worth from banks and stores. It might take you a day of driving around (try coin roll hunting them without preordering). The reason is they don’t circulate very fast or frequently so they are hard to find. People get them and they go in a drawer rather then getting spent again.

[cwgii]

The choir is us.
I think a lot of us,coiners, spend the halves and dollars as tips or just to mess with young folks.
I don't know how many times people had never seen a $2.

[Recyclersteve]

One issue right now and just for the past week to ten days or so has been the fuel shortage- mostly in the southeast.

I used to see lots of those Give a Penny/Take a Penny cups. Even with COVID essentially over, I haven’t seen them reappear. The pennies I mostly see now are on the ground.

[coppernickel]

I was able to get a box of nickels on Friday. My bank has been able to afford one box about twice a month.

[Mauserman]

They followed up today to let me know they were unable to provide coins at this time due to the coin shortage. I don’t buy it at this point, I’m probably going to check with the bank management and the coin distributors.

[Mauserman]

Google KungFu does show a few recent articles mentioning a new shortage.

And this-
https://www.coinworld.com/news/us-coins/federal-reserve-limits-coin-orders-as-mint-works-to-meet-the-demand From May 14th

I really can’t understand how it’s not getting better. Seems like total incompetence by the banks and Federal Reserve if it’s still persisting.

[Changechecker]

Banks have to pay for rolled coins they order. An unnecessary operating expense for them. My banks keep a minimum amount of rolled coin and they are happy to sell excess only. They also pay to send back excess.
Not finding enough coin then consider trying more/different banks. Spring/summer is usually a good time to source coins as customers cash in coin for vacation and such.

[JadeDragon]

Interesting article. What I got was businesses are not depositing coin like they used too. Looks like circulation is still an issue.

[coppernickel]

My banker daughter told me the FED has placed a restriction on the bank ordering coin. She had no other details.

[Tourney64]

At one time banks were paying a premium for customers coins. None of mine were.

[Silver4face]

I definitely need to respond here: I go to many banks and only about 5 percent of them are claiming a shortage. I totally agree with the guy who said its a load of BS. I assure you that there is plenty of coin in existence. I'm still buying silver for face (out of bank rolls) and wheats for face (again, bank rolls). Also, I have noticed MANY 2020 coins in circulation and I really do mean MANY.

[coppernickel]

I visited my generally reliable bank today. My request for coin was rebuffed.

The manager, whom I also know socially, told me the FED has cut them off.

They were told society has basically gone cashless and coin just isn't available, and thus must not be needed.

[texcollex]

Sounds like someone is engineering a mandate to a cashless society.

[Recyclersteve]

Another factor not mentioned in this thread is a different kind of shortage- a shortage of EMPLOYEES (ESPECIALLY IN LOWER PAYING JOBS). If you could make almost as much money getting government stimulus/unemployment, you might decide to avoid applying for a job. That way you don’t have to pay for daycare for kids, your car/travel expenses go down, meals can be made at home to save money. Banks typically pay low wages, so I can see where the remaining tellers have to be more productive. Therefore, less idle chat and tell a fib if you need to when people request coins.

[TwoAndAHalfCents]

I’m beginning to think it’s not a coin shortage but a lack of free coin processing. If banks are charging small businesses per roll/box for getting coins or if the Fed is increasing their charge to banks for that service then simply declining to order coins and blaming it on a “coin shortage” would be a believable excuse.

[coppernickel]

I am beginning to think the next depression has begun. Coins missing from the economy are just a symptom. Many of those "nonessential" employees have decided they can either live without working, found an "essential" job, or simply quit. Many have also learned they can live on less than 50 to 100 hour work weeks. Could it be minds going on strike?

[Silver4face]

The last time I commented here was six weeks ago. At that time, I said that only 5 percent of the banks were claiming a shortage. That percentage is up to around 35-40 percent now. There are two "chains" that consistently cry "shortage." There truly is NO shortage, but rather a difficulty of acquisition for certain banks and or businesses. Unless the government is secretly melting down or hiding some coins, there are way more coins than what you think. There are still older coins out there if you are willing to open bank rolls.

[coppernicus]

With labor issues, I think more people are understanding the cost of time in dealing with change. There is a true cost in people time and machine time in counting change. So there may not be a shortage, but no one is willing to pay a fee to compensate for the cost of dealing with change.
If coin sorting by hand was a business rather than a hobby, it would be a money losing business because it would not be able to pay a minimum wage. At the same time if you compare coin sorting to golf...coin sorting is a much better financial return and can be perceived by those who do it as just as entertaining, or even more so, than golf.
If you are willing to compensate people for the time of counting, rolling, to get change...then you can get it. If you expect that task to be done for free, then fewer people are willing to do it.

[Cu Penny Hoarder]

Ate lunch at a Chipotle the other day. They would not take my $20 bill and wanted exact change. How many ppl carry exact change? I had to pay with my CC.

I talked a few employees at Lowe's and Home Depot (which I frequent a lot lately due to home repairs). They all tell me they are having a very hard time sourcing coins.

This is all being planned. The government is deliberately making coinage scarce to force everyone into a digital form of payment.

I've been hoarding copper for the last 20 years and nickels for the last 5 years. Now I am keeping ALL the coins I get, even the zinc pennies. You guys should be doing the same.

[galenrog]

The “coin shortage” in my opinion, is primarily due to banks and credit unions pulling coin counters from branches. Coupled with the prevailing attitude among bank executives and the best and brightest in government that the world needs to become cashless does most of it.

Time for more coffee.

[coppernickel]

I've been hoarding copper for the last 20 years and nickels for the last 5 years. Now I am keeping ALL the coins I get, even the zinc pennies. You guys should be doing the same.

The only coin I send back are the dimes, and coins ugly enough that I don't want them. I've started returning coin to the self checkout.

Last week the clerk saw me dumping about $5 worth of mostly ugly nickels. He came over and showed me the front of the coin counter flips up to accommodate coin faster.

[Cu Penny Hoarder]

The “coin shortage” in my opinion, is primarily due to banks and credit unions pulling coin counters from branches. Coupled with the prevailing attitude among bank executives and the best and brightest in government that the world needs to become cashless does most of it.

Time for more coffee.

I belong to a credit union, they currently have 3 coin counters, one of them was just added recently.

Every grocery store I visit has a coin counter... of course they lop off a 5-10% fee.

Caffeine pills are much cheaper than Starbucks.

[Recyclersteve]

On Friday a local bank that is very busy told me they are having a hard time getting pennies and quarters and that orders frequently arrive which are partially filled.

Other than from collectors, I just don’t see why there would be so much demand for pennies. I see them on the ground A LOT!