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What seigniorage is
Seigniorage is the profit a government makes when face value is more than the cost to produce the money. A Gold Eagle does not work that way.
Seigniorage is the difference between the face value of money and what it cost to make and issue it.
If it costs two cents to make a nickel, and the nickel spends as five cents, the government has seigniorage before overhead. That is the clean version.
When it goes the wrong way
If the metal in a coin is worth more than face value, people melt or hoard the coin. That is why the US left 90% silver in 1965, and why pennies and nickels get periodic “it costs more to make than it is worth” news. Inflation. 1965.
Bullion coins are not a seigniorage product
A Gold Eagle’s $50 face is a legal label. The mint sells it as an ounce of gold plus a premium through authorized purchasers. The shop then trades it as metal. Authorized purchasers. US Mint vs shop. Face value.
Kings used to debase coins to squeeze more seigniorage. That is the old version of printing. Where coins began. What money is.
Continue in the coin and money library. Related visitor guides: for shop visitors.