Waffled Coins: Source = ?

From what I understand, the mint waffles them and then sends them to a company that recycles metal and then they get out to the public...somehow
John1

OR possibly issued by the Mint to make more coin collectors. The more coins taken out of circulation, the more overtime those Mint workers get to make up for those.

The Mint waffles the rejected coins so that they are no longer legal tender. That makes them just so much scrap metal as far as the government is concerned. The waffled coins and scrap from the blanked strip is sold by the GSA to the highest bidder. Usually this is the same companies that produce the strip for the Mint but it can be anyone and sometimes other metal recyclers are successful bidders as well. Back in the days before waffling the Mint would have to provide security during shipment of the scrap because the coins contained in the shipment were still legal tender and an obligation on the US government. After waffling the security was no longer needed and was a financial savings. Once the buyer pays for the scrap and picks it up it belongs to him to do with as he pleases. If they want to sort out some of the waffled coins and sell them on the open market they are free to do so.

Probably what happens is some company other than the strip manufacturer buys a load of scrap at the GSA sale, and is approached by someone who offeres to buy a ton of so off of them for a profit. The company agrees and the new buyer sorts out the waffled coins and sells the rest for scrap, then markets the waffled coins and make their profit. Nothing is being smuggled out of the Mint, and the sales are completely above board and legal.

Frankly if you want to attend the GSA sales and bid on the scrap yourself and get in on the action you can. Just realize you will probably be buying some fifty to one hundred ton lots and you are responsible for removing it from the premises. Better have a forklift and some semis available.