The short version: in the United States, melting pennies and nickels is a federal offense; melting silver and gold coins is legal. The split exists because the law cares about one thing — protecting circulating coinage whose metal is worth more than its face value.
The penny and nickel ban
In December 2006, with copper and nickel prices pushing the metal in small change above face value, the US Mint issued 31 CFR Part 82: it is illegal to melt or treat one-cent and five-cent coins, or to export them beyond small allowances ($5 in pocket, $100 shipped for legitimate numismatic purposes). Violations carry up to a $10,000 fine, five years in prison, or both. The rule is why copper-penny hoarders stack sorted cents but cannot cash in the metal — they are betting the ban lifts when the cent is retired.
Notable carve-out: the regulation exempts the 1942–1945 35% silver war nickels, which may be melted like any silver coin.
Silver coins: legal since 1969
When silver left coinage in 1965, the Treasury briefly banned melting the old 90% coins (1967) to keep change in circulation — then lifted the ban in May 1969 once clad coins had taken over. Ever since, melting US silver coins has been fully legal, and refiners did melt enormous quantities during price spikes like 1979–80 and 2011.
Today almost nobody melts them anyway: a recognizable junk silver coin trades at or above its metal content as-is, with no refining cost. Melting destroys the very recognizability that makes the coins liquid — economics, not law, keeps them intact.
Gold coins
Also legal to melt — and also almost never melted. Pre-1933 US gold carries collector and semi-numismatic premiums above melt, so destroying a coin forfeits value. The 1933 gold recall era is long over; private gold ownership has been unrestricted since the end of 1974.
Outside the US
Rules differ sharply. Canada prohibits melting any current coin without a license under its Currency Act — including the 80% silver coins, which trade intact for bullion content. The UK similarly bans melting current coinage. If you handle non-US coins, check the issuing country’s law before reaching for a torch.
What this means in practice
- Owning, buying, selling and hoarding any US coin is legal — the bans cover only melting and export of cents and nickels.
- Silver and gold coins are worth more intact; their melt value is a pricing floor, not an instruction. Check yours with the silver and gold calculators.
- This is an educational overview, not legal advice — regulations can change, and the current text of 31 CFR Part 82 is on the eCFR website.
Frequently asked questions
Can I legally melt silver dollars?
Yes. Melting 90% silver US coins — dimes, quarters, halves and dollars — has been legal since the Treasury lifted its temporary ban in May 1969. In practice they are worth more intact, traded as recognizable junk silver.
What is the penalty for melting pennies?
Under 31 CFR Part 82, melting or treating one-cent or five-cent coins carries up to a $10,000 fine, up to five years imprisonment, or both, plus forfeiture of the coins.
Is it legal to melt Canadian coins?
No — Canada's Currency Act prohibits melting or breaking up any current Canadian coin without a license, regardless of metal. Canadian silver coins are traded intact for their bullion content instead.