Melt versus Numismatic value

[Silver4face]

Most world coins do not have high numismatic value. Ten years ago, a dealer told me that most world coins are worth 5 to 50 cents each. My experience has taught me that he's correct. Despite the low values, the numismatic value was still higher than melt value in most cases. BUT NOW with the surge in metals, especially nickel, MELT VALUE has surpassed numismatic value, especially for larger coins in lower grades of condition. Now is the time (or is too late!) to gobble up Mexican pesos, large Netherlands coins, large Venezuelan coins, Hong Kong dollars etc. Really anything large regardless of condition. I am wondering if dealers will raise their per pound price.

[shinnosuke]

Most world coins do not have high numismatic value. Ten years ago, a dealer told me that most world coins are worth 5 to 50 cents each. My experience has taught me that he's correct. Despite the low values, the numismatic value was still higher than melt value in most cases. BUT NOW with the surge in metals, especially nickel, MELT VALUE has surpassed numismatic value, especially for larger coins in lower grades of condition. Now is the time (or is too late!) to gobble up Mexican pesos, large Netherlands coins, large Venezuelan coins, Hong Kong dollars etc. Really anything large regardless of condition. I am wondering if dealers will raise their per pound price.

Let's talk about this idea from the viewpoint of a citizen of the USA. I understand how holding all pennies, including the zincolns, now makes sense for Americans. If the price per pound of zinc is high enough those pennies will be worth more than one US cent. However, we still can't melt those pennies so the gain must remain unrealized for the time being.

In the case of the large foreign coins you mentioned, perhaps we could, as residents of the US, melt them down. However, melting costs money (equipment and fuel) and time, not to mention the cost of the gasoline to drive to the coin shop to buy the foreign coins in sufficient volumes to be a profitable exercise. How long will we wait and in what quantities must we buy before holding a lot of non-precious metal/non-numismatic coins is financially worthwhile?

Are the coins you mentioned pure or alloys? If alloys, even if I could melt them, I don't have the smarts to separate the metals. Is there an app for that?

Is anybody on realcent already melting foreign coins? Making a killing?

Is it legal in, say, Mexico for Mexican citizens to melt their old non-circulating coinage? If legal for them, I would guess there are many who will start melting when it is profitable for them. Would they be competition for Americans? In other words, once profitable, fewer Mexican coins enter the US...would be my guess.

Hey, what are those Chuck E. Cheese or Peter Piper Pizza game tokens made of and what are they worth?

I'm thinking that this could be a good idea if:
1. I only buy when I'm already at a coin shop buying silver.
2. I only buy the foreign coins in bulk at a low price.
3. I have space to store those coins until the time of The Big Melt.
4. My wife doesn't find out about my new fascination.

Sorry for all the questions and few solutions. I'd like to read lots of comments.

[Silver4face]

In response to your comments, I have no idea what those game tokens are made of, but I would definitely pick them up for free if you can. I know that melting costs time and money; however, I was not suggesting that it be done. I am simply pointing out that EVERY coin has 2-3 values: face value, numismatic value, AND melt value. Therefore, I feel that they could possibly be sold or traded in a profitable way. Remember, a true copper Hoarder will hoard copper from ALL countries!

[shinnosuke]

In response to your comments, I have no idea what those game tokens are made of, but I would definitely pick them up for free if you can. I know that melting costs time and money; however, I was not suggesting that it be done. I am simply pointing out that EVERY coin has 2-3 values: face value, numismatic value, AND melt value. Therefore, I feel that they could possibly be sold or traded in a profitable way. Remember, a true copper Hoarder will hoard copper from ALL countries!

Ouch, you cut me deep and wide. LOL. I must strive with more focus and determination and diligence to become a true copper hoarder. Thanks for the good ideas.