U.S. Mint Bans Melting Pennies, Nickels

[World Colonial]

This problem is almost entirely of the government's own making because they are the primary cause of the credit and monetary inflation which resulted in these metals prices exceeding their face value. This is a typical response from a monopolist. First, they make it illegal for anyone to offer a competing product. (Read the US mint's reaction to the so-calle dLiberty dollar.) Then they legislate what you can do with your own money which you own in the form of change. If they really wanted to fix this problem, they would stop debasing the currency.

[John Martinez]

As far as when melting sivler (mostly silver coins i.e. dimes) was banned - 1967 - see post on this thread page 1.

 

As far as what law, see page 2 of this thread. It's quoted there.

[John Martinez]

What possible reason could they have to ban the melting of bullion coins? I'm sorry, that's a little paranoid for me, and I don't even like the government. Doing so is not going to put more coins into circulation. Nor will it cost the government anything, as they don't tax us for income earned due to our silver coins appreciating (knock on wood).

 

As for melting down silver coins, I'm sure it is legal, as lots of folks are doing it as we speak. Does anyone here know when the law prohibiting melting silver coin was passed and repealed?

 

From ABC news regarding the current penny and nickel

The Department of the Treasury implemented similar regulations prohibiting the exportation, melting or treatment of silver coins between 1967 and 1969, and 1-cent coins between 1974 and 1978.

[John Martinez]

I'm surprised they can just announce that this is illegal without an act of congress or some such thing.

 

Paul

 

Their authority to do this is written in the CFR. It is law. All The Secretary of the Mint has to do is publish it in the Federal Register, and it's a done deal.

 

TITLE 31--MONEY AND FINANCE

 

SUBTITLE IV--MONEY

 

CHAPTER 51--COINS AND CURRENCY

 

SUBCHAPTER II--GENERAL AUTHORITY

 

Sec. 5111. Minting and issuing coins, medals, and numismatic

items

 

(d)(1) The Secretary may prohibit or limit the exportation, melting,

or treatment of United States coins when the Secretary decides the

prohibition or limitation is necessary to protect the coinage of the

United States.

(2) A person knowingly violating an order or license issued or

regulation prescribed under paragraph (1) of this subsection, shall be

fined not more than $10,000, imprisoned not more than 5 years, or both.

(3) Coins exported, melted, or treated in violation of an order or

license issued or regulation prescribed, and metal resulting from the

melting or treatment, shall be forfeited to the United States

Government. The powers of the Secretary and the remedies available to

enforce forfeitures are those provided in part II of subchapter C of

chapter 75 of the Internal Revenue Code of 1954 \1\ (26 U.S.C. 7321 et

seq.).