Future Bullion Folks

I buy a decent amount of “junk silver”. I know a fellow that buys abandoned storage rooms and when he finds old silver coins, he sells them to me at a deal...... Twice now when my stack becomes a bit too much I’ll carry several pounds to my dealer and swap for some gold...... He has told me that he immediately sends them off to a smelter because the price is so volatile.

I am betting that this same scenario plays out with dealers all across the country. I wonder if future bullion/coin folks will be unhappy with us for destroying so many common silver coins?

 

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Depends on how worn they are and their dates I guess.

 

If they're common, being destroyed will make them rarer. I honestly wouldn't smelt them, I really like silver coins. But I understand why people do it. In 50 years, a common silver coin might be worth a whole lot more because people melted them down until there were few left.

 

I thought it was illegal to melt coins for silver or copper. Am I right or wrong?

 

I have always wondered how much actually goes to a smelter. I'll guess it happens a lot if the dealer has a local smelter.

 

It is not illegal to melt U.S. silver coinage for its metal value. It was illegal from 1967 to 1969 to do so, during which time the government recalled as much silver coinage from circulation as it could.

 

AFTER THE MELTS: WHAT’S LEFT IN SILVER COINS?

 

I have mixed feelings about this! As a coin collector I would rather see identifiable coins left in circulation, but I can understand some people wanting the bullion. For me the bottom line is if I have bullion I'm stuck with the current bullion value. If I have the coins I still have the bullion option as well as a possible collectors value! Newbies are always looking for low end coins to start!!

 

I can't wait until my 1964P Quarters are worth waaaaaaaaaay more than melt value

 

Furry..... Uuummm.... I don't think that will happen anytime soon! It kills me that most of the 64 dimes and quarters I send off as bullion are in remarkably nice condition!

 

Well, you keep sending them off to be melted and I will keep stacking the ones I find in circulation
I haven't come across a worn 64 dime or quarter yet. Most look almost brand new.

 

^^^Roll finds, mine don't look that good 2 out of the 3 don't even have luster, I wouldn't call them worn yet.

 

Randy,
If the bulk of the silver coins are foreign I would suggest purchasing an older Krause-Mischler catalogue and check them for rarity. You might be sending to the smelter just one coin that would pay for the entire lot.
J.T.

 

Sounds like a racket to me. Lol

 

I can't imagine destroying a coin or a book.

 

Just because it gets sent to a smelter does not means it gets melted. Some of the largest sources of junk silver bags are smelters. Smelters can protect against volatility by using futures. Silver coins, especially US ones, have higher value than things like broken silver sets or mismatched silverware. I know a couple of smelters and they haven't melted US coins in years.

 

I sure didn’t know that. Makes me feel much better about the whole thing. Awesome info.

 

Some melt world coins, damaged coins, etc. Sometimes to round out an order and junk is moving slow they might melt, but most of the time they become junk silver bags. I would do the same, maximize your profit from the junk stream coming at you. Smart business.

There have been times in the past massive melts happened. I remember reading of thousands of bags of BU Morgans being melted in the late 70s since there was not a market for them when the silver price rose, but that is unusual.