Ok to melt halves and nickels but not cents?

[Spizzerinctum]

I'm sure there must be an obvious reason but someone please remind me why it's not legal to melt copper cents but it's ok to melt halves and war nickels. Thanks.

 

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[MIhunter]

It was okay to melt any US coin until the government banned the melting of nickels and pennies about 10 years ago. At that time the price of copper and nickel had risen to the point where their melt value was greater than its face value.

Since these coins cost more to make and distribute than their face value, the government would lose even more money minting new pennies and nickels to replace the ones that had been melted.

 

[50cent]

Soon the ban on cent and nickel melting will expire and you can melt to your heart's content. I've put aside Ag for copper.

 

[Spizzerinctum]

There was a post on here recently that showed .999 silver bars that were formerly 40% halves and war nickels. I assumed they were melted recently as well, including the nickels?

It was okay to melt any US coin until the government banned the melting of nickels and pennies about 10 years ago. At that time the price of copper and nickel had risen to the point where their melt value was greater than its face value.

Since these coins cost more to make and distribute than their face value, the government would lose even more money minting new pennies and nickels to replace the ones that had been melted.

 

[SilverFace]

Ive never really quite understood the idea of melting money. Maybe copper cents because I know those have so many different industrial uses and there were so many of them minted and they can take up so much space if people try and hoard them as money but in regards to silver I don't understand why people aren't just satisfied with exchanging silver coins for what they want. Coins were minted for a purpose. Why do people have this incessant desire to melt money which has real intrinsic value in exchange for fiat currency which is in reality worthless. Way too many silver coins have been melted already and way too many paper dollars have been printed. And its not worth the refining costs to melt silver coins - esp. the 35% and 40% silver coins. They were minted for a purpose and should just be used for their intended purpose - as a medium of exchange.

Btw, did u all hear about the Pawn Stars Shop possibly melting a stolen $50,000 coin collection? I don't watch that show anymore but when I did I remember most of the time when they bought coins or most other gold and silver items they'd usually say "scrap it". Well, gold and silver coins aren't scrap but cash is definitely trash. People are sure going to be finding that out before too much longer and eventually people will finally start to realize it makes much more sense to burn your cash than to melt your money....real money that is.

H$H!

 

[ktb615]

Ive never really quite understood the idea of melting money. Maybe copper cents because I know those have so many different industrial uses...

Silver has extensive industrial uses. That's part of what makes it so valuable and why scrapping silver is a big market.

 

[Dozer D]

Further the same question: Is it just as legal to melt AG 90% dimes (Rosie's, Merc's, barbers,) & quarters (washingtons, barbers)? Or are they considered obsolete even though they all canbe used as US monetary coinage in use. Please explain!!!!

 

[MuckyBottles]

Sometimes the numismatic value is worth more than the melt value, what then? Would you take the hit, just because of the melt value?

 

[SilverFace]

Silver has extensive industrial uses. That's part of what makes it so valuable and why scrapping silver is a big market.

I understand that but, silver coins should have a purpose and value as money too - that's why the coins were minted in the first place. Its just that silver coins are no longer used for their original intended purpose by most people anymore. Unfortunately the Fed and the government have been able to brainwash most people into believing an endless supply of paper, which they have complete control over creating, is money - which its not. Both the industrial uses and monetary purposes of silver combined with its scarcity is what gives it its value. Once more people start to realize it has a real store of value as money in addition to its industrial uses then the demand will increase dramatically, far exceeding the supply, and prices will soar. Its not a matter of if but when.

 

[boristhespider88]

Further the same question: Is it just as legal to melt AG 90% dimes (Rosie's, Merc's, barbers,) & quarters (washingtons, barbers)? Or are they considered obsolete even though they all canbe used as US monetary coinage in use. Please explain!!!!

Silver coins (dimes, halves, quarters, dollars, and war nickels) can be melted. It doesn't matter if they still circulate or not.

You could (in theory) melt clad dimes, clad quarters, and clad halves, but that wouldn't make any since because you'd be losing out on the face value of the coin.

View attachment 959895

Copper cents and regular nickels cannot be melted under the ban. The intrinsic value of the metal exceeded the face value of the coins, so that made them be more likely to be melted, thus the ban.

http://usatoday30.usatoday.com/money/2006-12-14-melting-ban-usat_x.htm

 

[boristhespider88]

Btw, did u all hear about the Pawn Stars Shop possibly melting a stolen $50,000 coin collection? I don't watch that show anymore but when I did I remember most of the time when they bought coins or most other gold and silver items they'd usually say "scrap it". Well, gold and silver coins aren't scrap but cash is definitely trash. People are sure going to be finding that out before too much longer and eventually people will finally start to realize it makes much more sense to burn your cash than to melt your money....real money that is.

H$H!

I didn't think that was a real story, but then I found a BUNCH of links talking about it.

That's truly sad that they would just ship stuff off to be melted like that.

?Pawn Stars? Shop Buys $50,000 In Stolen Gold Coins ? Owner Wants Them Back, But Shop Admits They Melted Them!  | Radar Online

?Pawn Stars? Shop May Have Melted Down Stolen Coins | WebProNews

Pawn Stars tell customer 'we turned your coin collection into gold' | Mail Online

Pawn Stars Pawn Shop May Have Melted Stolen Coins - ABC News

 

[fistfulladirt]

I understand that but, silver coins should have a purpose and value as money too - that's why the coins were minted in the first place. Its just that silver coins are no longer used for their original intended purpose by most people anymore. Unfortunately the Fed and the government have been able to brainwash most people into believing an endless supply of paper, which they have complete control over creating, is money - which its not. Both the industrial uses and monetary purposes of silver combined with its scarcity is what gives it its value. Once more people start to realize it has a real store of value as money in addition to its industrial uses then the demand will increase dramatically, far exceeding the supply, and prices will soar. Its not a matter of if but when.

Ok, but how does using silver for money work when coin's value is up and down daily? That's the tricky part.

 

[LooseChange]

Ok, but how does using silver for money work when coin's value is up and down daily? That's the tricky part.

Ask those in Utah - the only place in the country where it is legal to trade bullion as real money.
Utah officially makes gold and silver legal tender | Marketplace.org

Of course a "bank" needs to get involved so as to spoil the reality of PM money. But, don't worry. You can trust that the gold and silver you traded for your debit card is really still yours.

 

[MIhunter]

There were several reasons why the world stopped using silver and gold coins.
When we were on the gold standard, everything wasn't rosie.
My suggestion: read up on the history of monetary policy in the US, 1796-Present.

I know many of you are fixated on "hard currency" but fiat currency is here to stay.
There isn't enough gold in the world to replace fiat currencies.
There are ups and downs, but basically if a country can't devalue their money by printing more (I am not talking about hyperinflation)
than any recession can quickly worsen to depression.

Or maybe I'm wrong and the Bankers rule the world with their secret societies and fiat currencies.

 

[50cent]

Ask those in Utah - the only place in the country where it is legal to trade bullion as real money.
Utah officially makes gold and silver legal tender | Marketplace.org

Of course a "bank" needs to get involved so as to spoil the reality of PM money. But, don't worry. You can trust that the gold and silver you traded for your debit card is really still yours.

MI Hunter makes some good points. If people or businesses want to accept gold or silver as commerce, they are free to, there doesn't need to be some "official" law created to create more red tape and *COUGH* tracking/taxes *COUGH*. Utah is the worst state in the nation, they are touted as the most conservative but they ain't. This Utah "official" gold depository is only government waste and only an additional way for them to launder money.

There's nothing good about this state, nothing to like.
As far as I'm concerned, they are an epic failure and gold/silver under their state government bureaucracy guidelines would only create a mess. I'm all for gold/silver/PMs but really, this is a stupid idea.

 

[LooseChange]

... Utah ... There's nothing good about this state, nothing to like ...

A bunch of the silver you love came from deep mines in Utah. Other than that, you might be right. There's plenty of dust and red rock cliffs, but whoopi - what good is any of that?

I grinned a little when I saw this though:

 

[Diggin-N-Dumps]

i think its pointless to Melt ANY coin....Its always going to be worth what it is without melting.

I can have 20 dollars in copper pennies....maybe its 38 bucks in Copper...Melted or Not


than what happens when copper drops below Face value...Of course I'm not thinking YOU personally would be melting it.

 

[50cent]

A bunch of the silver you love came from deep mines in Utah. Other than that, you might be right. There's plenty of dust and red rock cliffs, but whoopi - what good is any of that?

I grinned a little when I saw this though:

I mean existing as a geopolitical entity, I personally think Arizona should take over, liquidate ~half of the population, keep the silver. But your right though homie, loosechange, I overlooked the most important aspect, the silver.

 

[xrunndonex]

i think its pointless to Melt ANY coin....Its always going to be worth what it is without melting.

I can have 20 dollars in copper pennies....maybe its 38 bucks in Copper...Melted or Not

than what happens when copper drops below Face value...Of course I'm not thinking YOU personally would be melting it.

There is a small premium for bars