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legacypac
Administrator
Canada
1653 Posts |
 Posted - 08/15/2008 : 02:34:42
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By Numismatic News
August 14, 2008
Other News & Articles
For the first time in about two years, the value of the metal in the circulating U.S. 5-cent coin, popularly called the nickel, has fallen below face value.
On Aug. 12 the 75 percent copper, 25 percent nickel 5-cent coin had a melt value of .0492888, according to calculations made by the Web site Coinflation.com.
Nickel was valued at $8.108 a pound, one-third its peak price reached in the spring of 2007. Copper is valued at $3.2593 a pound, after retreating from more than $4 earlier this year.
The Treasury's melting ban still remains in place. The melting of cents and nickels was officially banned Dec. 14, 2006, by order of the Treasury secretary to keep an adequate number of coins in circulation.
The copper-coated zinc cent has always been in less danger of melting. Currently it has a metallic value of .0043592 cents, or less than half of its face value.
The fact that the Mint cannot strike cents and make a profit is based more on the additional costs of fabricating the planchets, striking them and ascribing proper overhead expenses.
The number of cents struck in recent years has plunged, meaning that fixed costs get spread over fewer coins.
The old 95 percent copper cents struck before 1983 would be worthwhile to melt were it not for the melting ban. Metallic content is worth more than double face value at .0214787.
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legacypac
Administrator
Canada
1653 Posts |
Posted - 08/15/2008 : 02:39:24
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Is the melt ban a Mint thing or is it a Treasury thing?
Note the referance to, yet acceptance of, the screwy accounting in allocating overhead. |
Edited by - legacypac on 08/16/2008 21:05:05 |
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Cody8404
Penny Collector Member
USA
340 Posts |
Posted - 08/15/2008 : 14:54:34
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Does this reset the clock so now it must be two more years until they could stop making nickels and cents?
As I understand the melt ban was placed by the Mint on authority of the Treasury by an 1967 law that allows the mint to, "ban melting or exporting of silver and other coins if deamed in the interest of commerse." |
Awake, O kings of the earth! Come ye, O, come ye, with your gold and your silver, to the help of my people, to the house of the daughters of Zion, to the help of the people of the God of this Land even Jesus Christ. |
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legacypac
Administrator
Canada
1653 Posts |
Posted - 08/16/2008 : 21:07:36
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quote:
Originally posted by Cody8404
Does this reset the clock so now it must be two more years until they could stop making nickels and cents?
As I understand the melt ban was placed by the Mint on authority of the Treasury by an 1967 law that allows the mint to, "ban melting or exporting of silver and other coins if deamed in the interest of commerce."
I would add that the mint still must loose money on making nickels, since they must by the metal and do all the work too. Melt is just the metal value... nothing for the work. |
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Metal Value of Nickel Falls Below Face
