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Originally Posted by valo403
I don't get your point, this isn't commemorative currency and it isn't making the mint any money. This is standard currency with a corporate logo stamped on it. If anything it costs the mint money to produce a variation of the standard loonie.
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Except there is a commemerative version that's selling at a premium. They just happened to stamp out some circulation currency as well with it.
Also, how does a new loonie cost taxpayers?
Taken from the US Mint website, I can assume the Canadian Mint follows a similar business model:
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The U.S. Mint is in a good business: It can cut and stamp a piece of metal and sell it for the face value of the coin. A quarter, for example, costs the Mint five cents to make, but sells for 25 cents--an 80 percent profit margin. These profits, called "seigniorage," go into the government's general fund and are budgeted by Congress just like tax revenue. (Old coins can also be exchanged for new ones, but this accounts for only a small portion of the coins manufactured each year.)
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So for argument's sake, I'll use the same figures for loonies. Say there's an 80% profit margin on loonies. They've circulated 3 million of them in hopes that fans will keep their loonies and take them out of circulation. If even a third of the circulated ones are kept in for a collection, that's a nice tidy profit of $800,000. I'd be willing to bet that more than covers the cost to create a new stamp...
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Originally Posted by Winnipeg Free Press
The Mint, which has plants in Winnipeg and Ottawa, had a net profit of more than $21 million in 2007 and paid more than $9 million in income taxes. In addition to Minting almost two billion coins for Canada in 2007, it produced more than two billion coins and blanks for 12 countries around the globe including New Zealand, Ghana and Papua New Guinea, all at its Winnipeg plant.
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Yeah, it's a real burden on tax payers, all right...