Bitcoin makes more sense imo as it doesn’t require you to trust the person giving you the metals. Even the most well intentioned system often ends up corrupted in the end if you have to place your trust in a group.
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What about junk silver? Here in Oz, our 1966 round 50c coins were made by the millions and are 80% silver … or about 10g, so about 1/3 Oz .
No doubt the US has a similar coin?
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We printed our own currency in Switzerland where I was going to college (The University of the New World). In Switzerland it was legal to create your own currency. They were called “Les Vache”
(Cows) and were pieces of paper with a silly looking cow face printed on them. The local merchants were eager for business with the university and accepted cows on the good faith and credit of the University and every month they would redeem their cows for Swiss Franks.
After 2 years the university went belly up and the local merchants were left holding worthless cows.
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A silver dime, maybe. A 1/3 oz of silver soon will be worth $20, too much for bread or eggs. A copper ounce thats worth $3 or $5 would be a closer match for such small purchases. I’ll have to look into the value of a silver dime. Thanks. I had kinda forgotten about junk silver.
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I just looked it up. A junk silver US dime is .07 ounces silver melt value at todays spot price of $58. So a junk dime is worth $4.25. A bit more than the copper 1oz round at $3.
This is fun. If we ever had to barter in odd coims or rounds, our brains would have to get quick with basic math again. Or carry a pocket calculator everywhere. Our math brains have turned to mush from relying on cell phones to do all the calculating for us.
I saw a teacher complaining that kids dont want
to learn basic math or reading anymore because the kids say they’ll just get their phones to do all the reading and math for them, so why should they bother to learn those skills? !!!
In a barter situation, todays kids would be hopeless and taken advantage of because they couldnt calculate trade values on the fly.
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Not sure what that phrase is supposed to mean. Explicit and implicit are opposites.
Do you mean intentionally implied?
True at the moment. However I believe that the situation would very soon sort itself out, given the incentives. For a brief time though – I suspect no more than a month – the old saying “a fool and his money are soon parted” would rule the day.
I have a notebook around here – somewhere! – with all the weights and conversions for common denominations written down. May have to find it soon…
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Thanks for writing this article. While I think that the Capron and similar coins would do well where they are already known, in most parts of the world that formerly had silver coins, those old coins would resurface and be the (sorry…) coin of the realm while the economy sorts itself out.
Mostly though, I want to thank you for posting the link to The End of Suburbia! (https://www.youtube.com/watch?v=Q3uvzcY2Xug ; 52 minutes) I’d heard of it, but here 20+ years on it’s a real time capsule. Even though the flood of fracked oil has kicked the barrel down the road a couple of decades, that documentary is as relevant now as when it was made. Who else remembers the relatively empty highways of mid-2008? And that was only the start of the real downslope in production, if fracking hadn’t happened.
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Swampmama3
I just looked it up. A junk silver US dime is .07 ounces silver melt value at todays spot price of $58. So a junk dime is worth $4.25. A bit more than the copper 1oz round at $3.
This site has been around for quite a while and back in the day I did check their math: www.coinflation.com
The newz feed they display is well, you know, top-20, bubblegum pop newz, so I rarely click on those.
Full Disclosure, I AdNauseam & Little Snitch them (browser plugin & system socket blocker) BLOCKING the usual suspects: 3rd party scripts/frames, cloudflareinsights, ebay, google-analytics, google, googlesyndication, googletagservies, jquery…
But otherwise a cool site.
So if we call you Swampmama, then you can call me The Caveat Kid.
Edit: Typo
That actually works well for your community. You just keep minting and claiming seigniorage. Eventually either everyone will be stacking silver or it’ll circulate, and whoever is minting is making a mint.
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Pre 1965 coins - aka junk silver would solve this problem. We just need to go back to silver coinage, silver certificate dollars and / or a currency based on gold. It’s not hard. Stop usury. The debt created by interest on loans can never be extinguished from the system.
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Let’s go with that. 
Holey smokes!
That’s a 42.5x multiplier…for so many years that was an 18x-22x multiplier…
The thing that I really despise the most about Mr Slammy is they theft of time. Sure, getting subsidized silver was a bennie, but at the cost of having wait and wait and wait.
But I love the idea of a local circulating silver currency. The main problem would be getting it to stick around and not end up a victim of Gresham’s law.
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I asked Grok if it is legal to melt down coins for their silver content:
.
.
Short Answer
Yes, it is still illegal in the United States to melt down U.S. coins for their metal content if they are pennies (copper) or nickels (nickel/copper), and it is also illegal to melt or export them in large quantities.
For pre-1965 silver coins (90% silver dimes, quarters, half-dollars, and dollars minted 1964 and earlier), the specific 1960s-era melting ban was lifted in the 1970s, and it is currently legal to melt them.
Current Legal Status (as of December 2025)
| Coin Type | Melting Legal? | Export for Melting Legal? | Governing Law / Regulation |
|---|---|---|---|
| Pre-1965 90% silver dimes, quarters, halves, dollars | Yes – Legal | Yes – Legal | Ban was repealed decades ago. No current federal prohibition. |
| 1965–present clad (copper-nickel) dimes, quarters, halves, dollars | Legal (no precious metal worth melting) | Legal | No restriction because metal value < face value. |
| Cents (pennies) and nickels | Illegal | Illegal in quantities >$5 | 31 CFR § 82.1–82.2 (U.S. Mint regulation issued 2006, still in force 2025) |
| Penalty: Up to 5 years in prison and/or $10,000 fine per violation |
Key Details on Pennies and Nickels
- The U.S. Mint regulation (December 2006, updated and still active) prohibits melting or exporting pennies and nickels for their metal content when the metal is worth more than face value (which it has been for most years since 2006).
- Exception: You may melt a few for jewelry/art if it’s truly negligible quantities and not for profit on the metal.
- In practice, the Treasury and Secret Service only go after large-scale operations (hundreds of pounds or more).
Silver Coins (90% Junk Silver
- The original ban came from Treasury orders in the 1960s when silver prices spiked.
- Those orders were rescinded in the 1970s after silver coins were fully replaced with clad coinage.
- Since then, melting 90% silver U.S. coins has been 100% legal.
- It is one of the most common sources of physical silver for refiners and jewelers.
Bottom Line
- Melting pre-1965 U.S. silver coins → completely legal
- Melting pennies or nickels → illegal (with real criminal penalties if done on any serious scale)
If you’re thinking about melting silver coins for bullion or casting, go right ahead — it’s perfectly lawful. Just don’t try it with sacks of nickels or pennies.
Again I asked Grok if there are smelters in the U.S. that will melt down your coins:
.
Yes, There Are U.S. Smelters and Refineries That Will Process Your Coins
As long as you’re referring to pre-1965 U.S. silver coins (90% silver “junk silver” like dimes, quarters, halves, and dollars), it’s legal to melt them down, and several professional precious metals refineries across the U.S. will accept and process them. These facilities act as smelters: they assay (test) your coins for silver content, melt them down, refine the silver to high purity (often .999 fine), and pay you based on the recoverable silver value minus fees. They typically do not return refined bars to individuals unless you have a large volume or specific arrangement—instead, they pay cash, check, or wire transfer.
Key notes:
- They won’t touch pennies or nickels: Melting those is illegal under U.S. Mint regulations (31 CFR § 82), and refineries avoid them to steer clear of legal issues.
- Clad coins (1965+): Generally not accepted, as their silver content is too low (0% for most; 40% for some halves).
- Current Market Context (Dec 2025): High silver prices (~$32–35/oz) have caused refining backlogs, so processing times can stretch to 1–4 weeks. Some refineries may offer lower payouts (80–92% of melt value) or temporary pauses on intake—call ahead.
- How It Works: Ship your coins (insured, declared value) or drop off at a location. Minimums are often low (e.g., $100+ face value), but larger lots get better rates. Expect 1–2 business days for assay after receipt, then payout.
- Alternatives: If you want to melt small amounts yourself, check local jewelers or metal shops, but pros handle it safer and more accurately. For numismatic (collectible) coins, sell to dealers first—they might fetch more than melt value.
Recommended U.S. Refineries for Junk Silver Coins
Here’s a table of top options based on reputation, nationwide reach, and explicit acceptance of pre-1965 coins. All are LBMA/COMEX-approved or industry-vetted for reliability.
| Refinery Name | Location(s) | What They Accept | Payout/Process Details | Contact/Notes |
|---|---|---|---|---|
| Elemetal (Largest U.S. network) | 45+ locations (e.g., NY, TX, CA, FL) | Pre-1965 U.S. mint coins, junk silver, sterling | 85–95% of melt value; same-day settlements possible; refines to .999 bars/grain. | elemetal.com; 800-859-2019. Great for drop-offs; handles high volumes. |
| Midwest Refineries | Miles City, MT (ships nationwide) | Pre-1965 coin silver (90%), bars, coins | 90% for 90% coin silver; no minimum; 92% for pure silver. Pays via check/wire. | midwestrefineries.com; 406-232-0618. Family-owned; no walk-ins, ship only. |
| Specialty Metals | Alpine, TX (ships nationwide) | 90% silver dimes/quarters/halves/dollars; also 40% clad halves | Call for quotes (typically 85–92% of spot); 1–2 days processing; outright purchase option. | specialtymetals.com; 800-426-2344. Fast turnaround; no minimum quantity. |
| Arch Enterprises | Mexico, MO (ships nationwide) | Junk silver coins (pre-1965), gold coins over face value | Based on weight/silver content; top rates for volume; 5-step shipping process. | archenterprises.com; 800-872-4750. Focuses on coins/flatware; assay calculator online. |
| Prospectors Gold & Gems (PG&G) | Nationwide shipping; multiple sites | Pre-1965 U.S. silver coins, sterling items | 70–99% based on purity; electrolytic refining to .999+; up to 1-month backlog currently. | prospectorsgoldandgems.com; 775-265-0101. In-house bar pouring; good for smaller lots. |
| Northern Refineries | Prescott Valley, AZ (ships nationwide) | Silver coins, scrap, bullion | Competitive rates (call for quote); full assay (fire/ICP methods); eco-friendly process. | northernrefineries.com; 928-772-1902. Handles mixed lots; quick settlements. |
Bottom Line
Start with Elemetal if you’re near one of their 45 locations for easy drop-off, or Specialty Metals for straightforward shipping and fast quotes. Always get a current quote based on silver spot price, insure your shipment, and declare it properly (it’s not “currency” once melted). If your coins have collectible value (e.g., rare dates), get them appraised first—melting destroys that premium.
If you specify your location, coin type/quantity, or if you want refined bars back, I can narrow this down further!
I just flat don’t understand why someone would melt down US minted 90% silver coins. They’re already in a recognizable form. It would cost too much to refine them for industrial use.
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Here’s a response from Grok:
.
Does Most Junk Silver Get Melted Down?
Short Answer: Yes, the vast majority of junk silver (pre-1965 U.S. 90% silver coins like dimes, quarters, halves, and dollars) gets melted down over time. While a small fraction remains in collector or numismatic hands, the bulk is refined into bullion bars, rounds, or industrial silver due to economic incentives. Estimates suggest 80–95%+ of all minted junk silver has been or will be melted, based on supply data, dealer trends, and historical patterns as of December 2025.
Why This Happens
- Economic Reality: Junk silver trades at a premium to its silver melt value (e.g., a $1 face value bag ≈ $22–25 worth of silver at $32/oz spot in late 2025), but when premiums compress (e.g., during silver bull markets), melting becomes profitable. Refineries pay 85–95% of melt value, and the resulting .999 fine silver sells for full spot price.
- Historical Context: From 1965–1980, as silver prices spiked (peaking at $50/oz adjusted), massive melting occurred—billions of coins were destroyed. The U.S. Mint phased out 90% silver precisely to stop this.
- Ongoing Trend: High silver prices (~$30–35/oz in 2025) drive continued melting. Dealers report “bag breaking” (sorting for rarities, melting the rest) as standard practice. Surviving coins are mostly in institutional vaults, heirlooms, or small collector hoards.
Key Data and Estimates (2025)
Based on industry reports from the U.S. Mint, Silver Institute, and precious metals analysts:
| Metric/Source | Estimate/Details | Notes/Source Insight |
|---|---|---|
| Total Pre-1965 Junk Silver Minted | ~4–5 billion oz of silver content (e.g., 2.25B dimes, 1.7B quarters, etc.) | U.S. Mint historical records; represents ~10–12B face value coins. |
| Melted Since 1965 | 80–90% (3.2–4.5B oz) – much in 1960s–80s, ongoing annually | Silver Institute 2024 report; refineries like Elemetal process 50M+ oz/year from coins/scrap. |
| Remaining Circulated Junk Silver | 10–20% (0.4–1B oz), mostly in $1K–$10K dealer bags sold to investors | APMEX/Kitco dealer inventories; ~$500M–$1B face value in circulation/hoards. |
| Collector/Numismatic Share | <5% (high-grade or rare dates like 1893-S Morgan dollar) | PCGS/NGC grading data; melt bans on rare coins (e.g., via export restrictions) preserve these. |
| Annual Melting Rate (2025) | 50–100M oz from junk silver alone, amid 800M oz global mine supply | Kitco News/Refiners Association; up 15% YoY due to industrial demand (solar, EVs). |
- Global Angle: Much melted U.S. junk silver ends up in Asia (e.g., India/China) for jewelry or electronics, after refining. The LBMA estimates 70% of recycled silver comes from coins/scrap like this.
- Exceptions: Rare or proof coins (e.g., pre-1933 gold/silver) are protected by market premiums (2–10x melt value) and legal export rules, so they rarely get melted.
Bottom Line
If “most” means over 50%, absolutely—most junk silver gets melted. It’s a natural lifecycle for bullion-grade coins: mint → circulation → hoarding → melting when prices justify it. If you have junk silver, check for rarities first (via PCGS app or dealer) before sending to a refinery— a single key date could be worth 10x melt. In 2025’s market, holding for appreciation might beat melting, but supply keeps shrinking as melting continues.
If you have a specific bag or era in mind, I can help assess melt vs. collectible value!
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Perhaps a good model for local currencies would be if there were a profitable manufacturing base that partially paid its workers in fiat tokens according to what profit margins would allow, say half a percent, so that the token is founded upon enough excess energy that when recycled into local eggs and bread and homespun clothes, there would be enough beyond-mere-solar energy input to pay for fertilizer and taxes and other externalities.
Perhaps the token could be redeemable for official currency or bullion after a delay period, to encourage a balance of saving and spending, so that the value would never be below its share of embedded energy from the manufacturing process. This is not unlike compensation in stock options, except the benefit is recycled locally.
Please review what happened in Worgl (town in Austria pronounced Vorgl with two dots above the o) in 1932 which was in the midst of the depression. The mayor introduced a local currency that had a time stamp on it (currency lost 1% after a month and the result is known as the Worgl experiment and the result was miraculous: All the needed projects were done and then even more was accomplished. Any silver coins can be hoarded but the time stamp made it unprofitable to hoard. Each of the Worgl schillings 12 - 14 times more employment than the regular schillings circulating in parallel. The anti-hoarding device proved extremely effective as a spontaneous work generating device. Central bank of Austria shut them down.
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Slicks. Many unrecognizable. Instead of a normal XF, MS, AU, BU, Proof Ag dime weighing in at close to 2.5g., I have a big bag of dimes from the last silver rush in 2011 where most are slicks. They’re 90% silver by weight, NOT by Face Value. Just wafers, some of them.
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