Here is a good question that was asked in the Ebay coin forum. When proofs or any coins are returned to the US Mint because the buyer did not like their quality, what happens to these coins? Are they sent out to another buyer, remelted, or thrown into production coin bags somewhere?
There has been very little said by the mint over the years about this subject. What is known is that a number of these are destroyed at the end of at least some years. It's also known that at least some sets have been busted up over the years. There was a statement once that damaged and defective sets are destroyed but it's hard to know who makes the determination of what constitute damage or defect. Some orders are returned complete so it's difficult to believe that these are all destroyed but some returned sets are obviously highly defective and it seems improbable they just reship all the returns. My guess is that someone looks at returns and culls out "unsaleable" ones.
It might be added that I've looked at substantial numbers of sets removed from the shipping packages. Multiple sets in these packages are very similar because of the way the coins are struck and packaged. I've never seen a mismatched assortment of sets. This would seem to imply reshipping returns is unusual if not unheard of.
Actually the mint does make this known. All returned sets are placed on hold until the run is either sold out or ended by the date mandated. If the run is sold out, these returned coins or sets are offered to customers on a waiting list. Any major damaged coins are melted or destroyed.
