The E-Sylum:  Volume 10, Number 22, June 3, 2007, Article 18

NICKEL COINS SNAPPED UP AND MELTED IN INDIA

The Tribune of Chandigarh, India reported Monday that lower-denomination
nickel coins have disappeared from circulation and that gangs are buying
them up for melting profit.

"With the Re 1 and Rs 2 coins having suddenly disappeared from
circulation, several gangs are now collecting these coins from
shopkeepers in the region for the intrinsic value of the metal content
in these coins. With the cuperonickle (with copper and nickle metals)
coins having a good quantity of nickel, the prices of which have touched
an all time high of Rs 2500 per kg, these gangs are collecting the coins
and melting them to extract nickel and sell it in the market.

"The gangs are not just restricted to the traders in the urban areas,
but have appointed "sub-agents" in the semi-urban areas to collect coins
from people by moving from door-to-door. In Mubarakpur near Dera Bassi,
one such "sub-agent" has been collecting the coins by paying the gullible
villagers Rs 2 for every Re 1 coin and Rs 4 for every Rs 2 coin (old coin).

"With this artificially created scarcity of coins in the market, it is
the common man who is the real loser. More often than ever before, he
is simply offered sweets for the change money that any shopkeeper owes
him after deducting the bill for the goods bought."

To read the complete article, see: Full Story

  Wayne Homren, Editor

	coinbooks.org Web

The Numismatic Bibliomania Society is a non-profit organization 
promoting numismatic literature. See our web site at coinbooks.org.

To submit items for publication in The E-Sylum, write to the Editor 
at this address: whomren@coinlibrary.com

To subscribe go to: https://my.binhost.com/lists/listinfo/esylum