For 19 of the 22 commemorative coin programs for 1982 through 1995, Congress directed that a portion of the coins’ sales proceeds, namely the surcharges that were specific amounts added to the price of coins, be paid to the sponsoring organizations. Starting in 1984, Congress authorized a commemorative coin sponsor to receive surcharges on coin prices. We focused on commemorative coins that were issued since 1982. 2). According to many coin collectors, the Director of the Mint, and a commemorative coin advisory committee, in recent years the number of commemorative coins has proliferated and may have saturated the market, coin prices are higher than the customers want to pay, and some coin themes have not been well accepted in the market. Profits

From 1982 through 1995, sponsors were paid $309.6 million in surcharges, while the Mint earned $114.6 million in profit from commemorative coins and the Treasury received almost $64 million in surcharges for debt reduction. Options for Improving the Commemorative Coin Program

To help reduce a proliferation of commemorative coins and government losses, CCCAC has recommended the commemorative coin program be changed by limiting the number of commemorative coin programs per year, restricting the maximum authorized mintage levels, implementing a profit-sharing arrangement between the Mint and the sponsors, and transferring the authority to select themes to the Treasury Department. Congress has adopted 1 of CCCAC’s 11 recommended coin themes. CCCAC also recommended that Congress consider authorizing circulating commemorative coins. From 1982 to 1995, the four programs that sold the most coins did not compete with any other new programs. At current 30-year annual borrowing rates of about 7 percent, generating $225 million in seigniorage would reduce interest costs by about $16 million annually. Of CCCAC’s recommendations, one would seem to address some of the program’s problems while also helping to reduce the national debt.
Why GAO Did This Study

Pursuant to a congressional request, GAO reviewed the U.S. Mint's Commemorative Coin Program, focusing on the profitability and proliferation of the coin program.

What GAO Found

GAO found that: (1) Congress authorized 22 commemorative coin programs from 1982 to 1995, and directed that part of the proceeds from four programs be used to reduce the national debt; (2) 19 of the commemorative coin programs included surcharges that were to be paid to coin sponsors; (3) the U.S. government earned $178 million from these commemorative coin programs, while the sponsors earned $310 million; (4) coin collectors believe that there are too many commemorative coin programs, coin prices are higher than customers are willing to pay, and some coin themes are not readily accepted on the market; (5) coin sponsors still receive profits from surcharges despite losses in some coin programs; (6) the U.S. Mint lost more than $4 million on one commemorative coin program in 1994; (7) the Citizens' Commemorative Coin Advisory Committee (CCCAC) recommended 11 coin programs for 1995 to 1999, but Congress only adopted one of the programs; (8) these recommendations included replacing the surcharge on coins with a profit-sharing arrangement between the Mint and the program sponsors and empowering the Treasury to select coin themes; (9) these recommendations do not adequately address the proliferation of coins, their high price, or unacceptability on the market; and (10) CCCAC also recommended that Congress authorize circulating commemorative coins, which could provide $225 million in seigniorage and save about $16 million on annual debt interest.