[seen-yer-ij] 
| 1. | something claimed by a sovereign or superior as a prerogative. |
| 2. | a charge on bullion brought to the mint to be coined. |
| 3. | the difference between the cost of the bullion plus minting expenses and the value as money of the pieces coined, constituting a source of government revenue. |
| seign·ior·age (sān'yər-ĭj) n. Revenue or a profit taken from the minting of coins, usually the difference between the value of the bullion used and the face value of the coin. [Middle English seigneurage, from Old French, from seignor, seignior; see seignior.] |
Seigniorage
The difference between the value of money and the cost to produce it.
Investopedia Commentary
Seigniorage may be counted as revenue for a government when the money that is created is worth more than it costs to produce it. This revenue is often used by governments to finance a portion of their expenditures without having to collect taxes. If, for example, it costs the U.S. Government $0.05 to produce a $1 bill, the seigniorage is $0.95, or the difference between the two amounts.
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See also: Currency, Fiat Money, Gold Standard, Hard Money, Soft Money
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