US Mint Reports Near Record Production Levels

In 2022, the US Mint continued to manufacture coins at near record levels, producing nearly 14 billion in the year.

The Mint, established in 1792 and the world’s largest coin manufacturer, generates revenue through the sales of circulating coins to the Federal Reserve Banks, numismatic products to the public and bullion coins to authorised purchasers. It operates six facilities and employs approximately 1,600 people. Since 1996 it has operated under the Public Enterprise Fund (PEF), with revenue in excess of amounts required by the PEF being transferred to the US Treasury.

In 2022 the Mint achieved revenues of $5.32 billion, compared with $5.42 billion in 2021, a decrease of 1.7%. The cost of goods sold decreased by 1.4% to $4.62 billion and selling, general, and administrative expenses increased by 6%, resulting in seigniorage of $534 million which was transferred to the Treasury General Fund. This was lower than 2021 due to the impact of decreased circulating coin and increased metal costs.

Circulating coins

The Mint continued to manufacture circulating coins at high levels in 2022, albeit fewer than in the two previous years, which had been characterised by coins not circulating through the economy as rapidly as before the pandemic. The drop in volumes produced and revenues for the year marked a return to a more normal pattern of demand.

Circulating coin shipments decreased by 2.6 billion units (-17.6%) to 12.1 billion coins. The decreases occurred in all denominations except the quarter. In terms of the ‘mix’, pennies accounted for 44.5% of shipments (down by 7.3%), nickels for 11.9%, dimes for 23.5% and quarters for 20%.

Revenues from circulating coins of $1.02 billion were 2.2% lower than the previous year, accounting for 19.2% of all 2022 revenue. Of the $534 million in seigniorage, $310.2 million was from circulating coins, compared with $381.2 million in 2021.

The unit costs of all circulating coins increased compared with the previous year – notably the penny, but all denominations were affected – due to increases in metal prices.

Precious metal coins for investors The Mint is the worlds largest producer of bullion coins, and sales in 2022 were $3.74 billion, slightly lower (1.4%) than 2021 but still well ahead of the 2020 levels ($2.1 billion) and earlier, reflecting continuing demand for precious metals as an investment product, particularly in the current period of geopolitical and economic uncertainty.

The coins – gold, silver, platinum and palladium – are sold to authorised purchasers through the American Buffalo and American Eagle Programs at the same market price paid for the metal plus a premium to cover bullion programme operating costs.

In 2022, the Mint sold 17.7 million ounces of bullion, 19.8 million ounces less than in 2021. But demand for gold bullion remained strong, with sales increasing by 18.88%. The American Eagle program saw a 10.4% increase in ounces sold, and the American Buffalo program a 49.2% increase.

Numismatic products for the public

The Mint’s numismatic program provides high-quality versions of circulating coinage, precious metal coins, commemorative coins, and medals for sale to the public. Volumes of numismatic products increased to 4.6 million units from 3.6 million the previous year, but revenues fell by 3.1% to just under $560 million, due to the product mix. Even so, as with bullion, revenues were still well ahead of those in previous years.

Two commemorative coin programs were released in 2022 – the Negro Leagues Baseball Commemorative Coin Program and the National Purple Heart Hall of Honor Commemorative Coin Program.

2022 was the first full year following the arrival of Ventris Gibson as the 40th US Mint Director in October 2021. Commenting on the results, she said: ‘Since joining the Mint in October 2021, I have been tremendously impressed by the dedication and professionalism of its workforce, and the outstanding quality of the circulating coins, bullion coins, and numismatic products made by the Mint’.