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 Replies: 14 / Views: 1,924 |
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Valued Member
Canada
91 Posts |
Hey all, lately I've been seeing a lot of talk about 50 cent 68-present and the nickles dollars. The common census is that when these get dropped at the bank and if no customers come asking for them they get shipped out and "Destroyed". I was even told by the tellers I ask that they get shipped to there head office then sent back to the mint to be destroyed. OK this is where I have some questions. 1. Do they ALL get destroyed, I mean the mint is still making 50 cent coins. Why destroy something that was 1-5 years old why not re issue it? 2. I'm guessing the banks sell the coins back to the mint for face value. If thats the case then the mint will be loosing tons of money from having to pay such a high price for the nickle in the coins. when they could just buy nickle form mining for much cheaper. Again are they really doing this? Now I do understand that keeping these coins would just take up space or does it have any of you seen this video? http://www.youtube.com/watch?v=W3DzkiGYNjQcan someone explain the process the mint goes through connected to this? thanks |
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Pillar of the Community
 Canada
9865 Posts |
They are melted for the nickel they contain.If the mint gets 20 cents of nickel for each 50 cent piece,and it only costs them 12 cents to produce a loonie to send back to the bank in exchange for 2 half dollars,they are ahead by 14 cents for each coin melted.multiply this by a million and it's quite significant.
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Valued Member
423 Posts |
Wouldn't you like a job where you built a house out of nice materials and got paid for it. Then get to rip the house down and and sell your material at a profit. Then get paid again to build another house out of cheaper material to replace the house you ripped down in the first place and made profit off the old material? I am sure you get some nice benefits and retirement packages too!
I think it was all nickel coins 5 cent to the $1. There is a mint report, I don't know if the mint broke down the profits for the nickel recovery.
The mint is doing it for $$$$. They have accountants and are a crown corporation. If someone is smart about money it's the mint. No need to worry about them... they know exactly what they are doing.
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Valued Member
 Canada
91 Posts |
hmm just seams that its not very good business savvy buying 17 cents worth of nickle for 50 cents.. even if that is used to produce more coin that they can sell for more they are still loosing from there original buy. But you are right guys I don't think the mint is going out of business any time soon :P.
Edited by skwca
01/20/2012 12:57 am
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Bedrock of the Community
Australia
21788 Posts |
There would obviously be a preference to extract lower denomination pure nickel coins from circulation for melting.
It simply costs less to buy back lower denomonation coins out of circulation.
The Mint would naturally be concentrating on nickel nickels.
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Pillar of the Community
Canada
2781 Posts |
i can understand doing this with nickels and such, but why keep recycling and producing 50c pieces unless they are going to be used in everyday circulation?
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Pillar of the Community
Canada
1554 Posts |
 I saw a news story about a school in the U.S. that couldn't afford the $40,000 it would cost to acquire a new roof, so they have buckets lining the hallway when it rains. I think they should send 'em a few hundred bags of these dollar$ to solve that problem! It's an eye opening video, make me mad to see this ridiculous waste when so many people, "tax payers" are in need. Glenn  |
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Pillar of the Community
Australia
7096 Posts |
Quote:
but why keep recycling and producing 50c pieces unless they are going to be used in everyday circulation?
Why don't people use these coins in Canada. In Aus the are a very handy coin, great in vending machines etc , also they are a nice big heavy coin you can chuck at that mongrel dog that has a go at you every now and then. Hit em with these beauties and they wont bother you for long   But seriously we use these coins in our daily commerce and they are useful coins. We dumped the 1 and 2 dollar notes an got coins instead  We dumped the 1 and 2 cent coins altogether without a problem, What the heck can you buy for 1 cent anyway? |
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Pillar of the Community
Canada
1733 Posts |
The mint made an attempt in 2002 to get the fifty cent piece back into daily commerce and it went over like a lead balloon.
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Pillar of the Community
Australia
7096 Posts |
[ ]quoteThe mint made an attempt in 2002 to get the fifty cent piece back into daily commerce and it went over like a lead balloon. [/quote] OK no one likes using the 50 cent/half dollar. So where exactly does the 1 and 5 cent coins fit into daily commerce  So everyone just loves carrying quarters in their pockets  |
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Pillar of the Community
Canada
1733 Posts |
People use cents and five cent pieces all the time. People here use the 1,5,10,25 Loonie and toonie on a consistent basis. The small change usage (below a dollar) mirrors the usage of our cousins across the border...
They may in fact get around to cancelling the one cent coin but there are no current plans to deep six the five cent. In the future the fifty cent piece may make a reappearance as the working coin of Canadian currency like it once was, but I doubt it. Modern micro payment methods are taking over.
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Valued Member
423 Posts |
I think the "angle" it works like this. Year is 1967. You make a nickel. (The numbers are made up as the RCM doesn't give exact numbers). .05 face - .02 actual cost = .03 profit + any shipping and handling charges Year is 2012. You have switched to a cheaper material and bought back your 1967 nickel and re-mint it to replace what you scrap. .05 face - .02 actual cost + (difference in scrapping: .08 metal value - .05 face you had to buy back at) = .05 profit + shipping and handling No loss has happened, there is a profit. I could very well be wrong. If someone knows exactly or has details I am interested. Edited by realpenny
01/20/2012 09:54 am
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Valued Member
423 Posts |
@skwca: Ask your a few more questions on the .50 pieces. What is the metal composition of old vs new? Is there a difference? What does the RCM charge for you to buy a roll of .50 pieces? Is it > than .50? Work the numbers. I doubt the RCM does what you think it is doing. But I don't collect .50 pieces so I don't know all the details. |
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Pillar of the Community
Canada
1700 Posts |
If the bank ship those coins out, they would lose money, because the nickel of a nickel dollar is ony worth around 10 cents, and the bank pays you a dollar.
Also, you really can go to the bank and ask them for nickel dollars?
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Pillar of the Community
Canada
1733 Posts |
Not quite, the bank gets a dollar for the coin regardless of the nickel value, it's still legal tender at face value.
Some banks will give them to you if people have brought them in, you have to ask.
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Replies: 14 / Views: 1,924 |
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Posted 01/20/2012 12:40 am
