Question on Coin Smelting. Record keeping?

[coinmojo]

Question.: Does the Gov. or Smelters keep a list of what is getting melted down?

If there is a rush to turn in all of those silver coins for melt, won't the rarity & value of those remaining be driven up. I know when I sell off I usually hang on to the older and better condition coins but I have sold off more than 4000 40% and probably 600 90% Halves all 64's in the last 2 years.

CRH Mojo

 

[LJ]

I brought this very question up last year. Diggummup provided a good article he found on this isuue. I hope this helps.

http://forum.treasurenet.com/index.php/topic,91995.msg661464.html#msg661464

 

[coinmojo]

Thanks for the link LJ very interesting article.

But it leaves me still with that painfull question... Are my Walkers Ben's and Kennedy's worth far more than melt even with silver over $20 an oz.

The article suggest we will never know and suggested it may take years before we would be able to determine rarity of formerly common coins like the 63 Franklin's. but it has been 28 years since the great melt.

Twice Last year here in Michigan some company ran a 2 & 3 full page adds in the major newspapers that they were buying up all the silver gold and jewelry that you could bring. "Highest Prices Paid" the ad said but no doubt they were getting it all pretty cheap. They came through here twice last year while the price of silver was hovering around 12 dollars. at $20 they may have already realized a 60% profit. nice turnaround in 6 months. they would double up if it hit $24 or triple if it goes to $36

What if these guys knew even more. That as a result of the big melt those junk silver coins they were buying up at 5 x face were worth a lot more than the general public knows.? collectabley speaking or is it simply bullion they were after.?

Seemed kinda curious to me. Like a sure sign something was about to break loose. Big Business always knows whats going to happen next. Or at least has a better idea than us common folk. If you have been following spot silver prices for the last couple of years it has been on a pretty steady climb. And when it finally jumps you got to act fast cause the fall is always faster. good to have all your ducks in a row when the market tops out.

Did we see the top 2 weeks ago?

All kinds of talk about shortages and demand. Look at oil @ $100 a barrel is that at all relative to the price of precious metals. what was a barreel of oil back in 1980 $5 or $6

Anyway I'm going in so many directions right now I should just stop talking.

Any one else got some thoughts. I'm looking to get educated.

CRH Mojo

 

[markmopar]

Oil in 1980 was $38/barrell($100.52). that was the monthly average. Intraday prices reached much higher.

 

[LJ]

Mojo - Yes, it was a good article & I came away with the same feeling of my question being 'unanswered'.

In reality I think we have an answer & the it is no.....not yet. I am no expert in this field by any means & this is just my humble opinion so take it for what it's worth.

One would think at some 'point' it would cross the line and have more numismatic value than just silver value. I don't think that 'point' will be anytime soon though. I read alot of analysts reports on silver and the consensus is that silver will continue to climb. Remember, just 5 years ago silver was at $4 - $5 per oz. In the big scheme of things, that wasn't a long time ago.

I just don't think the coins we find on a daily basis are old enough to bridge that gap.

If you take the Red Book (which I use as a guide) and look at some of the gold coins you will notice that alot of them that are at the lower end of the spectrum as far as condition goes are not much more than current spot prices. It seems as though the escalation in precious metals is even catching up to the numismatic value on those. It is just kinda crazy right now.

Anyway, I think our best bet is for silver prices to continue to climb at this point. Maybe some of the more experienced folks can chime in on this subject and add their thoughts.

 

[jewelerdave]

no one who melts keeps records as who would you give them too? and some dates you cant tell what it is.

Those who melt are not interested in the numbers expect for the dollars.

I have melted quite a few thousand 40s down, as well as 64 and 50s coinage. the Walkers I have saved. But everything else, Gone. And no I did not keep a record.

Every day some disappears and has been since they were minted.

There have been dozens of larger refiners that have come about and gone away since melting in mass began in the early 70s. Keep in mind that there have been tens of thousands of jewelers who have done small scale melting.

keep in mind before that, Any silver smith that needed silver could just go to the bank, get coin for melt, and would melt it to shape. This was before any mass melting.

Also, keep in mind that melting still goes on today, with $15 to 20 an ounce silver the profit is staggering. I use 90% coin mixed in with some fine 999 silver in order to make sterling, its a cheap way to get good sterling for orders as they come in. Almost all of what I melt is common date stuff that is worn down/cull but thats life.

Metals of value have and always will be recycled.

 

[sneak]

Question.: Does the Gov. or Smelters keep a list of what is getting melted down?

Answer: No, they don't keep records and they don't care.

 

[packerbacker]

This subject has come up before and I'm still of the same opinion. Say you have the only 1943 Walking Liberty left on the planet. You would think it would be very valuable wouldn't you? Problem is, you don't know or can you prove it is the last one in existance. Someone could pay a huge premium for it just to find out there are millions of them left so, given the fact that no one keeps records of their smelting, these coins can NEVER have a legitimate value, only an estimated value. My opinion.