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Melting Coins Now Illegal In the U.S.

Posted by kdawson on from the facing-meltdown dept.

A number of readers have noted the action by the U.S. Mint to outlaw the melting down or bulk export of coins. This has come about because the value of the precious metals contained in coins now exceeds their face value. The Mint would rather not have to replace pennies (at a cost of 1.73 cents per) or nickels (at 8.74 cents). The expectation is that Congress will mandate new compositions for some U.S. coins in 2007.

12 of 778 comments (clear)

  1. If this keeps up... by KingSkippus · · Score: 5, Funny

    If this keeps up, .002 cents really will = $.002

    (Sorry, but it had to be said...)

    1. Re:If this keeps up... by abe+ferlman · · Score: 5, Funny

      If I had a nickel for every time I heard that one...

      --
      microsoftword.mp3 - it doesn't care that they're not words...
    2. Re:If this keeps up... by YrWrstNtmr · · Score: 5, Informative

      Those are illegal. It's just that no one actually cares enough to enforce it.

      It's only illegal if you intend to use/distribute them as 'money'. Novelty items are OK.

      (Text as of 2/19/02) 18 U.S.C. 331:
      Whoever fraudulently alters, defaces, mutilates, impairs, diminishes, falsifies, scales or lightens any of the coins coined at the mints of the United States, or any foreign coins which are by law made current or are in actual use or circulation as money within the United States;

    3. Re:If this keeps up... by sholden · · Score: 5, Informative

      Australia manages just fine.

      You just round to the nearest 5 cents. If something costs $13.23 then you end up paying $13.25 if you pay cash, if it costs $13.27 then you also pay $13.25 if you pay cash. When paying by EFTPOS (think swiping your debit card in the US) or credit card or cheque (think check it the US :) you pay to the exact cent. Actual prices are still specified to individual cents, the rounding is done on the total purchase not on each individual item.

      It works perfectly well, sure you can get 2c worth of free petrol (gas...) by putting $40.02 in the tank, but no one does because it's 2c... Sure you could try buying 2c (or 7c) worth of petrol over and over again, but no one does that either because it's retarded.

      Just because you remove something from cash transactions doesn't mean you change the "base" of your currency - to claim that is just being moronic. Amazingly Australia didn't collapse, the banks didn't have a field day with "false" interest rates, in fact the only thing that changed is you don't end up carrying 10kg of coins at the end of the day...

      Inflation means that a penny now is a *much* *much* finer resolution on prices. People managed perfectly well 50 years ago with a much coarser price scheme... Seriously who gives a stuff if something costs $12.32 or $12.33 - can you even tell the difference at the end of week?

    4. Re:If this keeps up... by crlove · · Score: 5, Funny

      My bank account takes those little remainders and puts them into another account. It's just like taking pennies from the tray.

  2. "precious metals" in pennies? by plasmacutter · · Score: 5, Informative

    They stopped making em out of copper before the 50's (I forget exactly when its finals week XD)

    they make them out of an electroplated nickel alloy now..

    Dare i say it shouldn't just be oil we should be concerned about running out?

    JUNK METAL coins are now worth more than their face value... I think this is a sign that asteroid mining could be feasible (the average nickel iron monster is worth several trillian.. not counting any incidental precious metals)

    --
    VLC FOR MAC IS DYING! IF YOU DEVELOP, PLEASE SAVE IT!!
  3. get rid of pennies altogether? by jimfinity · · Score: 5, Insightful

    It might just be more feasible to get rid of pennies altogether.

    here is an article i have found to be particularly illuminating.

    http://www.straightdope.com/classics/a981009a.html

    1. Re:get rid of pennies altogether? by mfrank · · Score: 5, Funny

      You can't fold a dollar coin in half and stick it behind a G-string.

  4. Re:under what authority? by qweqazfoo · · Score: 5, Informative
    Ever heard of Administrative Law? Most of the laws in this country are made by federal and state executive agencies. http://en.wikipedia.org/wiki/Administrative_Law

    And to blow your mind even further, the judicial branch makes law too! It's called common law. The federal judiciary and 49 of the 50 states operate under common law. If you don't like it, you have to move to Louisiana or France.

  5. Re:redundant posting? by Moofie · · Score: 5, Funny

    Sounds like somebody needs a hug. C'mere, big guy.

    --
    Why yes, I AM a rocket scientist!
  6. Another Solution by rlp · · Score: 5, Funny

    I always thought that the mint should make all coins out of radioactive waste. It would solve the problem of nuclear waste disposal. It would encourage consumers to spend money - quickly. This would help the economy. And it would definitely discourage hoarding of currency.

    --
    [Insert pithy quote here]
  7. Re:Does anyone else here see the bigger problem? by feepness · · Score: 5, Insightful

    It isn't just a decrease in the value of a dollar, it's also an increase in the value of the metals.

    I'm sorry and this isn't personal but I'm amazed at how little financial acumen we collectively have. This is the financial equivalent of being surprised that 40% of all sick days are taken on Monday and Friday.

    The dollar being worth less and things costing more are exactly the same phenomenon. The value of the metals did not inherently increase. Were this lmited to a specific metal or commodity I would believe it, but it is very broad based and therefore can be traced to a monetary phenomenon (record low interest rates, loose lending practices, and increased consumer/government debt).