Keep the Change: Initially Popular Dollar Coin Loses Its Golden Shine

When the new dollar coin came into circulation last spring, it was supposed to spark a small revolution.

But local bankers and shop owners say that the coin's size, weight and striking resemblance to a piece of foil-wrapped chocolate have kept it from becoming the Square's currency of choice.

The dollar coin was designed to replace the ill-fated Susan B. Anthony coin, which has been a thorn in the side of the U. S. Mint since it started producing the coin in 1979.

Unlike the Anthony dollar--which was easily mistaken for a quarter and quickly fell out of favor with the public--the new coin was intended to correct past missteps.

With its golden color and portrait of Sacagawea, Lewis and Clark's Native American guide, the coin was supposed to stand out from other pocket change.

But despite the Mint's efforts, local bankers say that the coin simply doesn't appeal to the general public.

The golden coin was only in high demand for about three weeks last spring, says Vilma Pugh, associate vice president at Cambridgeport Bank.

"It's just not very popular anymore," Pugh says. "People seem to have realized that the coins are not very comfortable to use."

The coins are surprisingly heavy, Pugh says, adding that it's simply not reasonable to carry around five or 10 dollars in golden coins.

And to make matters worse, Pugh says, the coins are not very useful.

"You still need dollar bills for vending machines," Pugh says. "Not even slot machines will accept these coins. They look sort of like chocolate money."

In the last few months, Pugh says, the only interest she has seen is from grandparents who want to buy a 25-dollar roll of coins as a gift for grandchildren.

The coin is no more popular with Square shop owners.

When asked the last time a customer paid with a golden dollar coin, Gnomon Copy employee Sarah Hill is thoughtful.

"I think someone used one once, maybe," she says. "We really don't see them much."

Perhaps the public's inability to accept the new golden dollar coin is a psychological phenomenon, suggests Harvard Coop Supervisor Kevin Haggerty.

"The dollar bill is just so ingrained in the American psyche," Haggerty says. "As long as the bill is around, people will accept the bill over the coin."

But the golden dollar is an improvement over Anthony coin, Haggerty says.

"That was a bomb," he says. "When people do start using this, it's going to be a lot easier. There will be much less confusion."

At Bruegger's Bagels, employees say they find the golden dollar amusing.

Bruegger's employee Lenny Jones remembers being shocked by the weight of the coin when he tossed a golden dollar to a customer.

"They're heavy little suckers," Jones says.

Still, Cambridge Trust Bank employee Peter Adams says the golden dollar coin is slated to eventually replace the dollar bill.

"They're pretty neat," Adams says. "They're golden and they have the same purchasing power as a dollar bill."

To that end, the Mint has conducted a media blitz to publicize the new currency and convince the public that paper dollars are not necessarily better.

At the Mint's website, for instance, customers can order jewelry featuring the golden dollar. The site also includes an illustrated golden coin "road trip" across the country. And last spring, a golden coin documentary entitled "On the Inside: The U.S. Mint" ran on the Discovery Channel.

Pugh says she wouldn't be surprised if the Federal Reserve retires the golden coin in the near future.

"I really don't know why they ever came up with it. People simply don't like change," Pugh says.

And while the coins might not be very practical, Bruegger's Jones says he hopes that they will soon become collectible.

"I've started to save them," Jones says.

Since the coins are too heavy to carry around, Jones plans to hang four of them--one for each cardinal direction--from his wall.

"One day, they might have some real significance," he says.

--Staff writer Daniela J. Lamas can be reached at lamas@fas.harvard.edu.