U.S. Government Stops Melting of Cents and Nickels

[srcdco]

This article just came to me via the Numismatic News email newsletter:


Melting of U.S. cents and nickels has been banned by the U.S. government.

Interim regulations go into effect today, also prohibiting export or treatment of the coins.

"We are taking this action because the nation needs its coinage for commerce," said U.S. Mint Director Edmund C. Moy. "Replacing these coins would be an enormous cost to the taxpayer."

It currently costs more than face value to produce cents and nickels.

Travelers may take up to $5 in cents and nickels out of the country, and individuals may send $100 out of the country in any one shipment for legitimate coinage and numismatic purposes. Violating the ban can result in a fine of not more than $10,000, or imprisonment of not more than five years, or both.

Are you surprised?

Send comments to Numismatic News editor Dave Harper at [email protected]. Include your city and state with your e-mail.
—Dave Kranz, Newsletter Editor

Scott

 

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[MalteseFalcon]

Yes it was on CNN today.

I find it to be rather stupid. If they are so irritated about the thought that people might melt them down and sell the metal, they need to stop producing pennies and nickels!!!

Earlier this year I did check into the possibilities of creating a home smelter, but soon realized that the price of copper would at least have to triple it's current value for it to be worth the effort.

 

[bobr]

I'm surprised they didn't ban the melting of silver coins also. I suppose since it's cheaper to produce the clad coins, it doesn't matter if the old ones get melted. I guess I'll just keep saving the wheat straw pennies and put the others back into the wild.

 

[Snee]

Well...I'm really glad this has happened. I'm against the defacement of US currency. Whether it's copper, nickel, or silver. If all the copper pennies get taken out of circulation, all we'll be left with is these zinc ones that don't last more than ten years. If I searched halves, I'd sell the 40%s, but that's it...I'm glad this has happened.

 

[nc-joe]

First and foremost, to take a phrase from Al Gore... There is no controlling legal authority. (what authority do they have?) I would think, at best, it would take an act of congress, which easily could have the constitutionality of the act challenged, to change or create such a law.

Second. A "temporary" halt on melting will not stop hoarding. It will actually incourage it. Thus removing the coins from circulation even faster, by making the news public, will make the coins disappear faster. That was smart. Now those that have little or no interest in coins or precious metals will start hoarding copper coins.

I answered a post earlier this week as to why I was keeping my copper cents. Well, here you go. It would be long now and the price of pre 82 cents will sky rocket. Glad I got a jump start.

I wonder what the copper price will do tomorrow!

 

[mr.theman]

Well...I'm really glad this has happened. I'm against the defacement of US currency. Whether it's copper, nickel, or silver. If all the copper pennies get taken out of circulation, all we'll be left with is these zinc ones that don't last more than ten years. If I searched halves, I'd sell the 40%s, but that's it...I'm glad this has happened.

If you are worried about coins getting taken out of circulation then why do you CRH or collect coins? What is the difference between you keeping coins in your collection and someone else selling coins for melt? What do you think happens to those 40% halves that you sell? What is wrong with zinc pennies (other than they don't hold up to being burried very well) they spend the same. If they are worried about cost then maybe it is time to look at different metals.

Mr.T