You might have heard rumors about people melting down coins for their metal value, especially as inflation chips away at the dollar’s worth — but is it actually legal? Let’s dig into the facts and find out.
Can You Legally Melt Pennies and Nickels?
The U.S. government has strict rules against melting down pennies and nickels. This is because their metal content — mainly copper and nickel — has, at times, been worth more than the coin itself.
To stop people from hoarding and melting them for profit, the U.S. Mint made it illegal to melt or export them in bulk. Violators can face fines of up to $10,000, five years in prison, or both.
This rule is all about keeping coins in circulation. If too many people melted their pennies and nickels, taxpayers would be on the hook for producing replacements.
Is It Legal To Melt Silver Coins?
Silver coins haven’t been part of everyday circulation for decades, but they were once common. Before 1965, dimes, quarters, half-dollars, and dollars contained 90% silver. When silver prices started rising, people began pulling these coins out of circulation. To prevent a shortage, the U.S. government briefly made it illegal to melt them between 1967 and 1969.
Today, however, it is not illegal to melt silver coins — as long as they are not currently legal tender. That means older silver coins, such as pre-1965 quarters or Morgan silver dollars, can be melted down or sold for their silver content. That said, if a coin is still considered legal U.S. currency, melting it could be against the law.
Can You Legally Melt Gold Coins?
The same general rule applies to gold. If the coin is no longer legal tender, you’re free to do what you want with it. However, melting it down could be a legal issue if it still holds official currency status.
That said, many people today aren’t looking to melt gold coins — they’re acquiring gold as a way to hold onto something with lasting value. Unlike paper money, gold isn’t dependent on government policy or banking stability.
What To Know About Holding Physical Gold
Instead of worrying about melting coins, more people are focusing on acquiring physical gold for the long term. That’s where a Gold IRA comes in.
A Gold IRA is a self-directed retirement account that allows you to hold real gold instead of paper assets. It offers a way to protect your savings from economic uncertainty while keeping full ownership of tangible wealth.
American Hartford Gold helps people purchase the physical gold that goes into a Gold IRA. While we don’t administer the account or act as a depository, we make it simple to add real gold to your assets.
We’re Your Gold Experts
If you were hoping to melt a pile of pennies or nickels for their metal, think again — doing so is illegal. However, when it comes to silver and gold coins, the rules depend on whether they’re still considered legal tender.
Instead of melting metal, many people today are looking at ways to acquire gold and secure their savings outside of traditional banks. Want to learn more about owning physical gold? American Hartford Gold can walk you through it. Get in touch with us today.
Sources:
