US mint returns?

I was wondering what the US mint does with all the returns they receive? I don't think they receive many, but my thought is they may just throw them in a smelt pile.

Surely they can't just send out rejected coins to another customer, right? Any thoughts?

 

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Yes they do receive a lot of returns and for the most part (it seems) they ship them out in the next order to the next customer. Happens all the time, as does discussion about it here on CT... read Yakpoo's FS coin threads and jacervone is returning his BSA coins, just mentioned this morning.

 

If it's circulating coinage can't they just release it?

 

anything with a denomination, including gold and silver AGEs, ASEs, platinum coins, commems, you name it, can be spent at face value. for obvious reasons one does not do this...

 

The coins from the uncirculated sets the mint sells are not special other than the fact that they are not circulated. They have no bullion value.

 

what does bullion have to do with this? I'm saying all these coins issued from the US Mint have a face value that you could go out and spend: ASE 1oz silver = $1, gold Buffalo 1oz gold = $50 just like a dime in a mint set is worth 0.10¢... but no one will go out and spend a $1,400 collectible gold coin at $50 face value when you could return it to the Mint for the full price you paid less any shipping that's non-refundable. The OP was about returning coins to the Mint not about deciding to spend coins as currency and put them into circulation as a way to 'return' them.

 

Maybe I should have been more clear. Sorry for the confusion. I was trying to say

1. I get an uncirculated set in the mail from the mint. It is damaged (coins have spots, this has happend to me)
2. I ship it back and request a refund/exchange
3. The mint simple busts the set open and places the coins in general distribution for circulation.

I am sure that if they get a coin back that is made of a precious metal they remelt it.

 

No, they do not just melt it returned coins with precious metals content. If the coin can be resold they do so, Even if packaging is damaged but coin is fine, they likely repackage and sell it. If the coin is very obviously damaged, by the Mint, most people will not return it as it's likely a Mint error that could bring more money to the seller in the secondary market and if attributed as to what error it is. If the coin(s) have spots they are likely sent out to another customer not popped out and dumped into circulation.

 

I cant believe they would resend something back out if it had a problem!!

 

spots are common and not problems per say. the mint will suppress sending out 'mint errors' if they can catch them.

 

AS Krispy stated, bullion coins, ASE, and AGE, are re-sold.

Remember the old addage, one mans trash is another man's treasure!

 

Yeah, that's what everyone thinks but does anyone really know for certain? I brought this question up specifically b/c of the silver BSA's that are being returned. I noticed that quite a number of ppl are sending some back.

I wonder if the US mint just waits till their stock goes down and they're almost out of inventory and they send them out (the rejects)? I mean that's certainly a plausible answer but do they at least send out the rejected coins with a note that says "you can't return these as they are the last ones in our inventory"? Has anyone ever gotten such a note? :secret:

 

It's not just 'what everyone thinks'... The Mint does resell returned products which are resellable so long as there are orders to fulfill them and if they do not sell to individuals then they are likely sold to the bullion dealers later on to fulfill their bullion demand. Also I do not think the Mint waits until inventory is out to send back out to other customers those products which were previously returned. I suspect the coins returned are inspected and determined by a quality control agent which coins are true rejects and which can go out again, and to look for the reasons people are returning them to learn how to improve initial sales to eliminate the need to inspect returns, restock inventory and loose money to refunds. The fulfillment center likely processes much of these returns and doesn't see any difference in one order to the next, simply takes what inventory is available to them to fulfill the orders coming in until both inventory has expired (all units shipped) and the return dates per return/refund policy on those orders has expired for the customers. After the customers order returns window has closed and all back ordered / wait-listed customers have had their orders fulfilled from remaining supply, any remaining coins are probably distributed through that bullion dealer network, just as is done with previous years ASEs in the following years until they are all out of the Mint's inventory. It is a waste of time and money for the Mint to send returned collectors version coins to a refiner to melt and reprocess as blanks to send back to the Mint for future coin production unless of course the demand to do so is so significant that they need to take any and all sources of metals to create new blanks for future bullion demand-- in which case I don't think you'd even be able to buy any collectors version bullion in a time like that, just as 2009 saw no Proof Eagles in Silver or Gold from the Mint due to demand and supposed lack of blanks due to bullion demand.

 

it is unethical for them to resell returns unless the item is returned for a reason other than defect.

 

I can certainly believe it. They probably come into some depot and get processed by a Beltway Bandit, while the Govy QC Rep is pushing pencils in their corner cube.

 

What do you think Wal-Mart does with returned clothing and electronics?

Goes back on the rack/shelf and is resold.

 

Good luck with that. They have every intention of returning to inventory items that are in good salable condition, especially with back ordered customers and products that are in demand. Why would they not? They stand to make more money selling to another customer willing to pay full retail on the item returned by another than to simply eat the costs of personnel hours wasted and the time/expense of production and distribution. It is in their interest to make a profit by reselling any returned merchandise that meets the Mint's Quality Control checks, any defect or 'mint error' would be culled and removed/destroyed/melted to prevent the error from reaching the market. This is common practice. If you read enough CT threads, you will see the shear number of Mint products that members send back, many because they do not believe the coin will grade in the 69/70 range, but will the Mint QC care about the coin being below those grades? Nope... and the coin will go right back out to the next customer order on the list so long as the Mint is still fulfilling orders.

 

....if the returns are re-sold, they should certainly be labeled 'seconds' or have a

title assigned to them such as scratch and dent sale and be REDUCED in price!!

but don't hold your breath on that one!!

 

Some places do sell coins that are damaged at a reduced price. Look on AMPEX, they sell Pre 1933 gold that has been polished and or cleaned. They were selling "scruffy" Gold Maples earlier this year at a very small premium to spot.

 

Grizz: There is no reason nor responsibility for the Mint or any other business to label or mark an item as second sale.

Fifty: Apmex also sells banged up Unc and Proof Silver Modern US Commems in a couple of categories better dates