Can a private person make and sell their own bullion coin?

[Mogambo Guru]

Say I made a die, had silver/gold and melted it down, formed it in my die then stamp its content with a logo. Could I sell it to people legally?

 

[Kludge]

So long as you don't pretend it's worth a fixed amount in USD. Stamping "Mogambo Gambo" on a coin is fine, stamping "$20" on it is not.

You'll also need to go through normal business regulations, pay taxes, etc.

 

[kah13176]

Yes you can, but it can't be used in official monetary transactions to replace the FRN.

 

[Arklatex]

Sure, my best bud does this. You just can't stamp it with an USD amount or get raided by the FBI for violating legal tender laws.

 

[Mogambo Guru]

Sweet, thanks guys. I figured you would have to set up a business and pay taxes etc.. I guess I was more wondering about the tender laws, but so long as I dont stamp any US$ amount I am fine.

Cool.

 

[Bruno]

Make sure to share it here first!

 

[Dr.3D]

Also, don't call it a coin. The proper term is a round. Coin is reserved only for the government.

 

[Mogambo Guru]

Also, don't call it a coin. The proper term is a round. Coin is reserved only for the government.

Thanks for the tip.

 

[MozoVote]

Once a year in Charlotte, they have some kind of street fair called "Taste of the City" or something. You exchange your FRNs for coins that can be used to buy food samples.

It's kind of a gimmick, you don't get much food, and I think the hope is that some people will keep the coins for novelty value (effectively a profit to the organizers.) They don't have a dollar value but are marked in, I think, 1 and 2 unit increments...

But anyway, it is not a big deal to create "coins" that are for novelty value, or tradeable as scrip. I think the key issue is to not claim that they are US currency by placing dollar value on them.

 

[american.swan]

Just stamp "not debt" or "not paper" on them LOL

 

[heavenlyboy34]

This thread reminds me of trading tokens at Peter Piper Pizza for assorted goodies.

 

[pmbug]

If you don't own the die or manufacturing equipment, you can also contract with a mint (like the Northwest Territorial Mint) to have the rounds made. This is how most of the commemorative coins that you see advertised on TV are produced.

 

[Justin D]

NORFED. Look what happened to them.

 

[Kludge]

NORFED. Look what happened to them.

They stamped "$20" on their coins.

 

[TonySutton]

I wonder if there would be a market for PM rounds as gift certificates. They would certainly become collector's items and could be something which would retain its value.

If I were to buy a $25 gift certificate today that does not get used, inflation would eat into it's buying power a little. In the case of hyper inflation it would become worthless. If I were to buy a half ounce round of silver gift certificate inflation would increase it's value and in the case of hyper inflation it's value would increase dramatically.