What are the chances?

[rons]

This weeks Coin World has a picture of the president of Silvertowne with a bucket of gold coins they had bought to be melted. "At least one dealer, SilverTowne, from Winchester,Ind., reported filling five gallon buckets with gold and silver coinage, a good portion of the gold coins certified, all of which were headed for the melting pot. SilverTownes president David hendrickson said the company has been melting thousands of gold coins and bullion pieces for months, including numerous U.S. gold commemorative pieces."

It goes on but my question is, What are the chances they are doing an inventory and reporting to the TPGs and the mint for an adjustment in numbers? Are we seeing the beginning of another "melt-a-thon" like was experienced in the 80's? What are the implications for population reports and "rarity"? What other ramifications can be predicted from this action, and I assume this is not isolated.

[BillJones]

At the last FUN show I was trying to fill a want list of modern commemorative coins for a customer. It was hard going because the bullion prices were driving up driving up the cost for common commemorative gold coins.

 

One of the coins on my customer's list was the three piece Mt. Rushmore set in Proof. One dealer had three sets all in Unc. When I asked him what happened to the Proofs he said, "We sold all of those coins for scrap."

 

Maybe the common commemoratives are getting scarcer.

[just-john]

president is kicking himself gold hit $924.00 TODAY could see a recall ??

[stinkycheese1]

president is kicking himself gold hit $924.00 TODAY could see a recall ??

 

Jeeze, thats high! Lets hope there' s not a recall!

[michael]

only bullion gold will be recalled

 

pre 1933 usa gold coinage will be exempt;

 

especially so, pcgs/ngc top tier third party grading services slabbed ms63 and above saints and $20 type 3 liberties ms63 and above as you prove by the skin of your teeth numismatic collector value

[cpm9ball]

president is kicking himself gold hit $924.00 TODAY could see a recall ??

 

Jeeze, thats high! Lets hope there' s not a recall!

 

When do you thiink the Mint will increase their prices for the sales of Eagles and Commems?

 

Chris

[Conder101]

only bullion gold will be recalled

 

pre 1933 usa gold coinage will be exempt;

And you got this inside information from whom? Pre 1933 was exempt last time, (and it WASN'T exempt in the first version of the recall, it was added in later) but that doesn't mean it will be exempt if it happens again. I could very easily see them putting in a provision stating that only coins with a numismatic value of oh say three times melt value or more are exempt. So all double eagles worth less than $3,000 are declared scrap.

[BULLY]

Don't forget PLATINUM. Platinum hit $1,680 an ounce on Friday!

 

There are LEFTOVER 2007 PROOF Platinum Eagles on the USMINT.gov web site, which is back up and running, parts of it anyway, for sale at relatively reasonable prices.

 

For instance? The one ounce Platinum Proof American Eagle 2007 coin is $1,740.95 -- just about $60 over melt value?

 

Some might consider that a BARGAIN! Do you think 2008 will be selling for that? Somehow, I doubt it!

 

With the gold sold out, one might consider this if they can afford it.

 

Also still available on the Mint web site...

 

2007-W UNCIRCULATED SILVER EAGLES for $21.95. Silver is at about $16.50 on Friday, so that's about $5 over melt.

Also worth of note is that the 2008 Proof (admittedly generally more expensive than the uncirculated coins) are ALSO for sale on the Mint web site at $31.95 -- $10 higher!

 

So, another bargain to some, at a more reasonable price if they want them!

[RWB]

It's unlikely any of the companies melting gold or silver coin bother to record the dates/mints/types - too time consuming for a low profit business and it brings no added value to the bullion.

 

As for the other subtopic – no body knows who has what gold, silver or pork bellies. Ordering people to turn it in would be socially disruptive and absurd. In 1932 the Hoover Administration knew who was hoarding gold because they required banks to report transactions, Assay offices and Mints kept track of who purchased bars, refiners and mines had to report production, and customs tracked export and import for business purposes. Small quantities came and went without records, but larger transactions were consistently reported. Tracking of gold movement and ownership – that was one of the basic operating conditions of the international gold standard.

.

[just-john]

Didn't mean a government recall of gold thats not going to happen . But recall of the president of Silvertown for selling low wonder how much they sold and what prices.

[Conder101]

Nah, he won't be recalled. When you're in that business you have to buy and sell constantly, you don't hold to speculate what it MIGHT do tomorrow. You have to have the cash to buy tomorrow. And what if he held and it went DOWN?

 

Another reason not to worry about him being recalled is that Silvertowne is a family owned business. David isn't just the President, he's the owner.