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nokozan
Penny Sorter Member
35 Posts |
 Posted - 05/25/2010 : 02:29:55
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i was just thinking to myself how come there is a melt ban? then i thought its because they dont want a coin shortage but if people hoard them instead of melting them wont that also cause a coin shortage?
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biglouddrunk
Penny Pincher Member
138 Posts |
Posted - 05/25/2010 : 02:36:50
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| If enough hoarded them than yes there would be a shortage. My guess is the law is there to stop large industrials from melting them. You have to figure if Alcoa or somebody wanted to they could put a real dent into the circulation. |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 05/25/2010 : 06:27:44
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quote:
Originally posted by biglouddrunk
If enough hoarded them than yes there would be a shortage. My guess is the law is there to stop large industrials from melting them. You have to figure if Alcoa or somebody wanted to they could put a real dent into the circulation.
On a smaller scale that is just what was happening. Jackson Metals of Ohio were reported to be sorting and melting by the tons. The current melt ban doesn't prevent hoarding, but it tends to discourage it over the short term. Long term hoarders consider it an opportunity to get more. |
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Think positive. |
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PennySaved
1000+ Penny Miser Member
USA
1720 Posts |
Posted - 05/25/2010 : 06:52:47
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Before the melt ban went into affect, do you think any company made a pretty big dent in melting pennies?
I have to admit I didn't start following this until the melt ban went into affect so I am not sure what was going on prior to the ban. |
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fasTTcar
Penny Hoarding Member
Canada
573 Posts |
Posted - 05/25/2010 : 08:38:36
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There were a couple industrial scale operations that were running in 2008 when copper and nickel were at all time highs.
Jackson metal was one. A private individual that I know of was also pulling about 3 million coins a week out for melt. |
www.londongoldbuyer.com |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 05/25/2010 : 09:09:55
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quote:
Originally posted by fasTTcar
There were a couple industrial scale operations that were running in 2008 when copper and nickel were at all time highs.
Jackson metal was one. A private individual that I know of was also pulling about 3 million coins a week out for melt.
If we are talking about the same person from Gold is Money, then he had some very sophisticated and expensive sorting machines and other equipment. |
Realcent.forumco.com disclosure. Please read.
All posts either by the members, moderators, and the administration of http://realcent.forumco.com are for your edification and amusement only. It is not the intent of realcent.forumco.com or its host to provide investment, medical, matrimonial, legal, security or tax advice and nothing posted here should be considered to be so. All rights reserved.
Think positive. |
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highroller4321
1000+ Penny Miser Member
USA
2648 Posts |
Posted - 05/25/2010 : 11:59:34
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Basically there is no reason right now.....
They were afriad that there would be a coin shortage if people kept melting pennies. If you look at the 2009 mintages though it shows you that they aren't worried about a shortage because the mintage is so low compared in other years. Last time it was as low as it was in 09 was 1966!! |
Copper Penny Investing
www.portlandmint.com |
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fasTTcar
Penny Hoarding Member
Canada
573 Posts |
Posted - 05/25/2010 : 12:25:37
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quote:
Originally posted by Ardent Listener
If we are talking about the same person from Gold is Money, then he had some very sophisticated and expensive sorting machines and other equipment.
Yes we are.
I brokered the sale of that equipment to a Real Cent member here. |
www.londongoldbuyer.com |
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coppernickel
Penny Pincher Member
USA
131 Posts |
Posted - 05/25/2010 : 12:40:57
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| Funny thing is the last major coin shortage that really effected people was in 1965-1967, When they took the silver from the coins. The mint blamed, "coin collectors." |
Silver Monometalism is the most permanent and stable form of money the world has seen. Natural law and history prove silver value is best multiplied by gold and best divided by copper. It is only in this counterfeit currency time when the natural law appears suspended. |
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poordriver
New Member
22 Posts |
Posted - 05/26/2010 : 00:39:20
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my question is
why would they ever want to lift it? |
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jadedragon
Administrator
Canada
3788 Posts |
Posted - 05/26/2010 : 05:28:15
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Pretty much it is a silly law and it will be lifted after the next debasement. Generally there is no reason to prohibit people from doing what they want with money (outside of fraudulently altering it) except to protect coins for commerce. However, if 20% of the pennies disappeared over a year or two they could crank up production. Problem right now is that the Mint has not switched over to cheaper materials yet so every penny pulled means the Mint must make a replacement penny that costs more than a cent to make (assuming all coins circulating are needed for commerce). When the Mint can make a penny for a 1/10 of a penny they will lift the melt ban because it will be profitable to replace all the melted coins. More on the coming coin debasement: You must be logged in to see this link.
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“The reasonable man adapts himself to the world; the unreasonable one persists in trying to adapt the world to himself. Therefore all progress depends on the unreasonable man.” – George Bernard Shaw.
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why is there a melt ban?
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