United States Mint Limits Exportation & Melting Of Coins

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Author	Replies: 11 / Views: 1,149
TheForce Pillar of the Community United States 4867 Posts	Posted 04/18/2007 11:41 pm April 17, 2007 United States Mint Limits Exportation & Melting of Coins Final Rule Maintains Policy Established in December WASHINGTON — The United States Mint today announced a final rule to limit the exportation, melting, or treatment of one-cent (penny) and 5-cent (nickel) United States coins, to safeguard against a potential shortage of these coins in circulation. United States Mint Director Edmund C. Moy had approved an interim rule on December 12, 2006, to be in effect for 120 days. Enactment of the final rule was pending public comment, solicited during a 30-day period from the date of the interim rule's publication in the Federal Register on December 20, 2006. "The new rule safeguards the integrity of U.S. coinage and protects taxpayers from bearing the costs to replace coins withdrawn from circulation," said Director Moy. The rising commodity prices of copper, nickel and zinc have increased the value of the metal in both pennies and nickels so that the content of these coins now exceeds their face value. There is concern that speculators could remove pennies and nickels from circulation and sell them as scrap for profit. The United States Mint has received inquiries from the public over the past several months concerning the metal value of these coins and whether it is legal to melt them. Widespread withdrawal of pennies and nickels from circulation could cause coin shortages, and it would be extremely costly to replenish them, given prevailing metal prices and production costs. Specifically, the newly enacted final regulation prohibits, with certain exceptions, the exportation, melting or treatment of one-cent and 5-cent coins. Some of the exceptions allow for small amounts of these coins to be exported as pocket change, and for recreational and numismatic purposes. Other exceptions include the treatment of minor quantities of these coins for educational, amusement, novelty, jewelry and similar purposes. However, the public should review the regulation for precise terms and limitations of the exceptions. The new regulation authorizes a fine of not more than $10,000, or imprisonment of not more than five years, or both, against a person who knowingly violates the regulation. In addition, by law, any coins exported, melted, or treated in violation of the regulation shall be forfeited to the United States Government. The new rule, and public comments received on the interim rule, appear on the United States Mint website at https://www.usmint.gov http://www.usmint.gov/pressroom/ind...lease&ID=771 Report this Post to the Staff

GO Moderator United States 6563 Posts	Posted 04/19/2007 12:01 am Wow! I never knew that was going into effect. Good thing I have BIG pockets. Report this Post to the Staff
thomas_z71 Valued Member United States 246 Posts	Posted 04/19/2007 12:05 am wow, so I should hoard all my nickels and pennies in case of shortage? :) Report this Post to the Staff
GO Moderator United States 6563 Posts	Posted 04/19/2007 12:44 am Doesn't everyone here do that anyways? :) Report this Post to the Staff
AuldFartte Pillar of the Community United States 830 Posts	Posted 04/19/2007 7:26 pm quote: to safeguard against a potential shortage of these coins in circulation. Oh, good grief. They make billions of the silly things Report this Post to the Staff
trdhrdr007 Pillar of the Community United States 2335 Posts	Posted 04/19/2007 8:11 pm They might make billions of them, but there is a pretty good spread between face & melt. When you think about a nickel being worth 8 cents melt value it doesn't seem like much. When you think about $100,000 worth of nickels being worth $160,000 it's a lot bigger deal. I don't know about anyone else, but if I could spend $100,000, load a truck, drive to the recycle center & sell for a $60,000 profit I would probably do it if it was legal. A 60% profit in a short period of time is pretty hard to resist. In fact, for someone that isn't a law abiding citizen, it's probably irresistable. Report this Post to the Staff
TheForce Pillar of the Community United States 4867 Posts	Posted 04/19/2007 8:45 pm Melting would be such a loss to the coin community. All those coins then becoming scarce artificially. Report this Post to the Staff
docsfishn Pillar of the Community United States 1031 Posts	Posted 04/19/2007 9:03 pm Melting the coins would only mean that the numismatic value would go up. If you don't contribute to the melting, the artificial scarcity would become a gain. Personally, I collect and may hoard coins but I would never have any melted. Report this Post to the Staff
hunter20ga Pillar of the Community United States 1173 Posts	Posted 04/19/2007 9:13 pm I vote for melting...and newfound scarcity! :o) Report this Post to the Staff
trdhrdr007 Pillar of the Community United States 2335 Posts	Posted 04/19/2007 9:24 pm I agree that melting would be a loss, but it wouldn't be a new phenomenon. There have been other periods when the bullion value of coins was worth more than face, during those periods coins were melted. I don't know of any specific instances that I can cite, but would be willing to bet that governments have melted coins that were spoils of war to reuse in their own coinage. Coins became reeded or otherwise edge struck because people were shaving metal from the edges, which is another form of people taking advantage of bullion value. Report this Post to the Staff
thingee Pillar of the Community United States 2177 Posts	Posted 04/19/2007 10:42 pm New pennies from the last several years, and even this year, deteriorate so quickly. They fade quickler, get gobs of green gunk and are damaged so quickly and easily that it would problaby have been less expensive overall if they had kept to the copper content before 1982. Pennies made in the last several AIN'T gonna last very long and finding any in fine condition now is not easy. And it's going to become rare in my opinion. I've recently started pulling out these pennies in BU for that reason. Report this Post to the Staff
TheForce Pillar of the Community United States 4867 Posts	Posted 04/19/2007 11:44 pm Todays cents are so flat looking and wear easily. Now the older Lincolns really stand out with better strikes in my opinion. Report this Post to the Staff
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