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 Replies: 10 / Views: 4,592 |
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Valued Member
Canada
286 Posts |
I was reading on another forum an argument between a few members about the legality of melting coins from Canada or just selling them to scrap yards.
Concerning the penny under the Canadian currency act section 9(2) a coin is not current if called and under section 11(1) No person shall, except in accordance with a licence granted by the Minister, melt down, break up or use otherwise than as currency any coin that is current and legal tender in Canada.
So I assume because the penny has been called it is 100% completely legal to melt.
If you know otherwise please post a response possibly with a reference.
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Pillar of the Community
Canada
2805 Posts |
It hasn't been demonetized and is still legal tender, so it's illegal to melt them.
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Valued Member
 Canada
286 Posts |
Currency act section 8. (1) Subject to this section, a tender of payment of money is a legal tender if it is made
(a) in coins that are current under section 7; and
(b) in notes issued by the Bank of Canada pursuant to the Bank of Canada Act intended for circulation in Canada.
It appears because it has been called under the currency act it is not technically legal tender.
Edited by john517
03/23/2013 10:18 pm
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Pillar of the Community
 Canada
9864 Posts |
nalaberong is right,you can't legally melt them.
According to Finance Canada;
"...the penny will continue to be legal tender..."
"Dipping" is not considered cleaning...
-from PCGS website
Edited by DBM
03/24/2013 12:21 am
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Pillar of the Community
Canada
815 Posts |
Actually, there is something amiss here, as I know there is a legal way to melt pre 1969 Canadian Silver. IIRC, there are several licensed assayers in Canada who are authorized to melt silver coinage, and dealers can ship large quantities to them for melting. I cannot imagine why silver would be any different than copper.
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Pillar of the Community
Canada
815 Posts |
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Valued Member
Canada
386 Posts |
Even large cents, 5 cents silver and Newfoundland coins are illegal to melt in Canada despite being out of circulation for decades. In the US, I believe it legal to melt all silver coins (including War Nickels) but not regular nickels nor pennies. |
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Valued Member
Canada
286 Posts |
Can anyone show me a law reference clearly stating that it is illegal?
9.(2) Currency Act: A coin that has been called in is not current.
11.(1) Currency Act: No person shall, except in accordance with a licence granted by the Minister, melt down, break up or use otherwise than as currency any coin that is current and legal tender in Canada.
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Pillar of the Community
Canada
815 Posts |
It is most definitely legal to melt NFLD coinage.
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Pillar of the Community
Canada
1581 Posts |
Interesting. The jump of silver has no doubt has culled much of the scrap circulation silver, and maybe a lot of the early NCLT too. And it will continue to do so if silver starts heading up again.
25 years from now, common NCLT may have been culled so much to reintroduce numismatic value.
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Pillar of the Community
Canada
2301 Posts |
The definition of "current" as used by the RCMP includes all Canadian coinage that has NOT BEEN De-monetized. You can not legally melt coinage without a license.
Edited by nickelsguy
03/25/2013 07:45 am
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Replies: 10 / Views: 4,592 |
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Posted 03/23/2013 10:15 pm
