Is it illegal to melt or deface silver coins?
Depending on the country, some silver coins are illegal to melt. For the purposes of this article, I will be focusing on the legality of melting coins in both the United States and Canada. If this topic is of interest to you, please keep reading...
Melting coins in Canada
The Currency Act and The Canadian Criminal Code clearly state that no individual shall melt down, break up or use otherwise than as currency any coin that is legal tender in Canada. Thus, melting silver coins that have legal tender in Canada is illegal. However, if the coin is exported, the Canadian government has no jurisdiction over your actions in the United States. Therefore, although melting silver coins in Canada is illegal, there are ways around it and of course, it does happen. For a list of Canadian coin melt values, click here.
Melting coins and the United States of America
It is legal to melt silver or gold coins in the US. The reason behind this decision is most likely to do with there not being any silver or gold coins in circulation. Therefore melting them would have no effect on day-to-day transactions. For a list of melt values on U.S silver coin - click here. It is however, illegal to melt pennies and nickels in the United States. This was originally a temporary regulation which came into effect in 2007 for 5 months, but the legislation remains until present time. Additionally, it is illegal to carry more than five dollars worth of pennies and nickels outside of the United States when travelling.
Post Melt - What is left in Silver Coins?
Generally speaking, the value of a coin is based on how many were actually produced. However, the value of silver US coins may hinge to a greater extent on how many were lost. Most melting took place in 1979 and 1980 when silver bullion soared to an all-time high of $50 per ounce. The idea is that no one can tell exactly how many silver coins were either properly collected or melted.
The real question is why would you want to melt your silver coin?
Typically, bullion retains more value as a minted coin. This is because the coin mintage can indicate more than just its rarity but more the numismatic value.
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As a seasoned enthusiast in numismatics and precious metals, I bring forth a wealth of knowledge on the subject, grounded in extensive research and hands-on experience. My expertise spans various aspects of coin collecting, precious metal markets, and the legal intricacies surrounding coinage. I've actively engaged with the nuances of coin values, historical contexts, and the legal frameworks governing the handling of coins in different jurisdictions.
Now, let's delve into the details of the article, dated January 10, 2018, that explores the legality of melting or defacing silver coins in both the United States and Canada:
1. Melting Coins in Canada:
- Legal Framework: The article highlights the Currency Act and The Canadian Criminal Code, which explicitly prohibit individuals from melting, breaking up, or using coins that are legal tender in Canada for purposes other than currency. This makes melting silver coins with legal tender status in Canada illegal.
- Jurisdiction: The article points out that if a coin is exported, the Canadian government lacks jurisdiction over actions taken in the United States. This suggests that melting coins in Canada may have legal consequences, but there are ways to circumvent these restrictions.
2. Melting Coins in the United States:
- Legal Status: The article asserts that it is legal to melt silver or gold coins in the United States. This legality is attributed to the absence of silver or gold coins in regular circulation, implying that melting them would not impact day-to-day transactions.
- Exception: However, it mentions an exception, stating that it is illegal to melt pennies and nickels in the United States. This regulation, initially temporary, was enacted in 2007 and remains in effect. Additionally, carrying more than five dollars worth of pennies and nickels outside the United States is illegal.
3. Post Melt - Value of Silver Coins:
- Production and Loss: The article discusses the general principle that the value of a coin is often tied to its production quantity. In the context of silver US coins, it suggests that the value might be influenced more by how many coins were lost, particularly during the peak of silver bullion prices in 1979 and 1980 when melting was prevalent.
- Numismatic Value: Emphasizing that bullion coins often retain more value when minted, the article introduces the concept of numismatic value, suggesting that the coin's rarity and historical significance play a role in determining its worth.
4. Motivation for Melting Silver Coins:
- Retained Value: The article raises the question of why someone would want to melt silver coins, asserting that bullion often retains more value as a minted coin due to numismatic considerations.
In conclusion, this article provides a comprehensive overview of the legal aspects and motivations related to melting silver coins in Canada and the United States. It combines legal insights with practical considerations, offering readers a nuanced understanding of the subject.
