Metallurgy, or the process of extracting metals and modifying them for use in our daily lives, is not only an artistic craft or scientific technique, but a well-established tradition in the precious metals industry that requires ingenuity, artisanship, and innovation. Britannica shares: “The present-day use of metals is the culmination of a long path of development extending over approximately 6,500 years,” and cites gold, silver, and copper as being widely recognized as the first known metals.
With the reliability and dependability that metallurgy offers and the possibilities that smelting, refining, and recycling provide, both refineries and mints are still thriving today. Below, I will highlight some of the key similarities and differences between these two entities for collectors, beginners, hobbyists, and numismatists.
Overview & Structure
A key differentiating factor between refineries and mints is how they are structured and how they operate. On one hand, refineries exist in the industry by functioning as privately owned companies, complete with CEOs, directing boards, executive committees, and other business staff. One popular refinery is Valcambi Suisse, which was established in the early 1960s. Currently, it is headquartered in Balerna, Switzerland and has a refining throughput of 5.1 tons per day. Another example includes Rand Refinery, which is known internationally for having the most expansive single-site precious metals refining and smelting complexes.
Unlike refineries, mints are often run by governments. The leadership that oversees them may include a deputy director, chief counsel, and commander, among others. In industry publications and sources, you may see mints being referred to as “state-owned” or “Sovereign Mints,” while professionals and experts might call them “National Mints.” The Royal Canadian Mint, Perth Mint, Australian Mint, and the South African Mint are all examples of mints overseen by governments. Beyond government-owned mints, there are also “private mints.” Two well-known private mints include MKS PAMP, founded in 1977, and Sunshine Minting, established soon after in 1979. According to Mint Industry, “There are 70 government-owned mints around the world as well as 40 privately-owned mints, producing almost 800 different coin denominations.”
Functions & Responsibilities
As its name suggests, the primary role of a refinery is to “refine” precious metals via fire refining, electrolytic refining, or chemical refining. Refining eliminates impurities while keeping the major metallic elements intact.
Other roles of refineries include — but are not limited to — transportation, reception, assaying, manufacturing, financing, and storage. You can learn more about services offered by a specific refinery by visiting the entity’s website.Mints create bullion coins, circulating coins, proof coins, certified coins, and bars. These precious metal collectibles are often highlighted in the annual Coin of the Year (COTY) Awards, which spans a variety of categories including “Most Historically Significant Coin,” “Best Bi-Metal Coin,” “Best Crown Coin,” and “Most Inspiring Coin.” Additionally, for governments, mints create legal tender or standardized national currencies. Private mints also have the ability to get creative, making products “with their own branding or designs, purity, and metal content.”
Learning More About Refineries and Mints
Serving distinctly different functions, both refineries and mints play an important role in the precious metals industry. Learn more about different entities by doing research online and exploring the opportunity to take public tours through those that offer them. The U.S. Mint, for example, has roots in several cities across the country, including New Orleans, Dahlonega, Charlotte, and Carson City. With public tours, virtual tours, and online brochures, it’s easy to explore this piece of American numismatic history for yourself. Learn more about the U.S. Mint and its history by visiting this blog post.
You can also learn more about five popular precious metal mints and brands by visiting this post.
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