Where do mutilated coins go? Apparently China

[FormerTeller]

I've been trying to unload my mutilated coins for quite some time. I almost exclusively use counting machines to dump, and when I do reroll I refuse to put mutilated or foreign coins in the rolls. I ran across this article last night, and found it absolutely fascinating. It's kind of a long read, but if you're at all into scrapping you'll enjoy it.

http://news.amm.com/chasing-the-elusive-jackpot-ammstory/

For those who don't want to wade through it, here's some highlights from the tl:dr version:

"The United States generates 389 million tons of trash annually." It is estimated that, "on average, each ton of solid waste contains at least 15 to 25 cents, which suggests that in any given year, America could be discarding up to $61.75 million in pocket change in its trash."

Automobile "shredders, heavy media plants and waste incinerators are well aware of the presence of coinage in the recycling chain, with some companies taking special measures to capture part of this revenue stream."

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Basically, these companies sell their mutilated coins, mixed with other waste called 'zorba', to a company who ships them to China. There, they're sorted and shipped back to the US, where the Mint buys the mutilated coins for $20 per pound, which for dimes, quarters, and halves is pretty much face value. Last year, the Mint stopped buying, as they suspected that other metals were included among the clad coins.

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I wonder what percentage of 'zorba' is silver. Thinking about that and looking at the pictures of the mutilated coins makes me start to salivate...

 

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[TheMastermind]

Good read. Thanks for posting.

 

[Tommybuckets]

Interesting article and topic!!!
Uncovering a coinspiracy- I bought some dimes (several $250 loose bags) recently. I was told they were from a vending machine company which made me very interested in buying them. Immediately after buying them I noticed they all had uniform damage to the rims and/ or faces. There were no undamaged coins and all the coins were cleaned or had been agitated until the rims were a uniform clean but not shiny color. There were no dirty or corroded coins and there were no new shiny coins. I could tell that they had been culled for silver as well since there were no silver coins in the mix. All but three dimes made it through the counting machine at my dump bank.
I have a feeling that these coins were destined for the US Treasury from a regional sorting hub to be destroyed and had been rerouted back into circulation (perhaps even after the entity received credit for them) These coins are turning up in rolls all over my area and are very annoying and easy to identify. I had hoped buying these bags would be productive since the branch has a steady supply of them and told me they get bags of halves and quarters from the same entity on occasion. I called and told the teller it wasn't going to work out since none of the coins would be added to my collection due to the damage. The exception came a few days later when I got what appears to be an off center strike in a roll heavily seeded with these damaged dimes. I had a feeling certain misstrikes would be present but after edge checking all the dimes and finding no silver I was done looking at them. I took some pics of the damaged dimes if anyone is interested. This probably could be a post of its own but not sure I want to call attention to this situation. I bet the Treasury would be interested as well but I don't want it to have unintended negative consequences for me and other CRHers. I was just curious what you all thought.

 

[Tommybuckets]

Well I now believe the dimes I got are from a waste metal processing plant either here in Md or as far as China due to this very article. Instead of redeeming them at the mint they are just putting the most salvageable coins back into circulation. That explains the uniform damage and lack of silver. I just want to get upstream to the silver n gold though.

 

[FormerTeller]

I'd love to see a picture of the damaged coins. Feel free to post on this thread, or PM it to me if you don't want to post.