Several weeks ago, the U.S. Mint extended its moratorium on the purchase mutilated coins to November 2, 2016.
Mutilated coins are often recovered during shredding. In fact, they are often found in the non-ferrous Zorba stream, and the prices paid for the Zorba reflects the value of the recovered coinage. Now, a number of recyclers are caught in a dilemma: the inability to redeem the coins they have collected, due to the moratorium, has only exacerbated the economic situation in which many find themselves.
Consequently, ISRI has stepped in with a letter to Secretary of the Treasury Jack Lew and Principal Deputy Director of the U.S. Mint Rhett Jeppson, requesting that the Mint (a Treasury Department agency) reconsider the current moratorium and requesting a meeting with appropriate representatives of the Mint and the Treasury Department to discuss this matter in detail so a resolution can be reached as expeditiously as possible.
The moratorium extension would appear to be related to lawsuits filed by the Department of Justice against certain foreign companies for allegedly redeeming counterfeit coins. (Another view suggests that the moratorium was extended to allow a consultant time to complete a study to protect the redemption process from counterfeiting and other security concerns)
As stated in our letter to the Treasury Department, “While ISRI fully supports enforcement activities against those companies that abuse the redemption program through the attempted sale of counterfeit coins, we do not see the need for a blanket moratorium that effectively punishes all those who legitimately rely on the program for their ongoing businesses.”
Contact Scott Horne for more information.