Melting Gold
Zippy7
Posts: 21
Why is there all this talk about melting gold and platinum coins. Melting costs money. Why would you pay $$ when they are easy to sell as a coin. Please help me understand this logic.
RD Cooper
0
Comments
<< <i>Why is there all this talk about melting gold and platinum coins. Melting costs money. Why would you pay $$ when they are easy to sell as a coin. Please help me understand this logic. >>
End users need metal, not bullion coins to plate electronics, and make catalytic converters.
<< <i>Major purchasers tend to purchase bullion in standard 400 oz ingots. >>
That's usually what I do when I cash in my piggy bank at the end of every year
<< <i>
<< <i>Major purchasers tend to purchase bullion in standard 400 oz ingots. >>
That's usually what I do when I cash in my piggy bank at the end of every year
You must have one big-honkin piggy bank.
oh and the above stuff sounds good too.
<< <i>Why is there all this talk about melting gold and platinum coins. Melting costs money. Why would you pay $$ when they are easy to sell as a coin. Please help me understand this logic. >>
Sometimes the term "melt" is used as a way to describe what the coins will value at, not their eventual destiny.
E.g. "I paid him 5% back of melt for those ex-jewelry $5 Libs, but I had to go 5 over melt for the $10 Indians"
This applies to silver, too - but normally only on pre-1965 90%, non-numismatic silver.
Make sense?
Edited for a dropped t
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Natural gas heat is all it takes--cheap.
high to warrant the destruction of coin. Coins are a convenient way to own metal
and can be melted for other reasons such as their general availability or because
they get redeemed for their high face values. Many world gold coins have face val-
ues well in excess of their metallic value and these have been getting destroyed for
decades now.
About 16-17 years ago I did 1000 pc orders for Home Shopping Club in my garage, nothing fancy, just ladies colored stone rings, it was cheaper to melt bullion coins and alloy it ourselves then it was to pay a premium for 14 karat casting grain,
We melted a hell of a lot of coins back then.......all bullion....eagles....maple leaf.
<< <i>Why is there all this talk about melting gold and platinum coins. Melting costs money. Why would you pay $$ when they are easy to sell as a coin. Please help me understand this logic. >>
it's just a rough estimate of the inherent value of the coin. I wouldn't get hung up on the semantics.
if there's any aspect remotely collectable about the coin, or even how pretty the design is why people would argue "why can I only get melt for this thing, look how pretty!"
The $5 and $10 face value coins that were sold in sets by the US Mint.
Used to be, you could buy them for right at melt on the Bay they were so common. I know I bought an awful lot of them a few years ago. That may still be true, I haven't looked in a while.
Those are currently being melted at alarming rates, but there were so many of them minted that it will be a long, long time before they gain any numismatic value due to their rarity. If they ever do become rare.
I can buy them at below melt from local B&M shops as they are being overloaded with short sighted sellers wanting to cash in on the small amounts of gold they own and the dealers have a great deal of capital tied up in them. I saw a bag with over 300 $5 commems in it just last Saturday. All of them were still in their tiny clear plastic Mint holders.
I often wonder just what sort of older US Coins are actually in the Silver Eagles, since the Mint is buying on the open market to produce those, I'm sure they consist of coins, jewelry and old tea sets, etc.
John Marnard Keynes, The Economic Consequences of the Peace, 1920, page 235ff