Circulated Gold Premiums Hit Zero.

Most of these coins are probably being resold for investment purposes and not melted.

Any PM coin's value is based on multiple inputs:

• Face value
• Collector value
• Investment demand
• Metal value

The value is not the sum of these, but typically the "high bidder" among them.

Look at a common date $20.

Face value: $20 - passed in 1933.

Collector value: face to slight premium over metal value.
Let's be realistic, there aren't many people collecting gold $20, especially by date. Those who are have already got the common date. After a run-up in metal value, the collector value disappears until new collectors slowly come into the market. Just like in the article.

Investment demand: All investors do is temporarily hold coins away from collectors. They can cause price spikes and prevent serious bottoms, but ultimately, they have to sell to collectors or for metal value.

Metal value: This is the key value component right now. Scrap buyers don't care what it looks like, whose holder it's in, etc. They're buying gold, not collectables. No surprise that dealers are selling for scrap, because the other components of value aren't willing to pay the market price.

I wonder how many of the coins that are being melted down are culls.