Old pesetas turned in by citizens to the Bank of Spain will eventually be repurposed, not as cash but as physical stock for various industrial uses. The National Factory of Currency and Stamp, under the Ministry of Finance, has decided to auction all items collected in 2021 and 2022. The sales will be conducted online and awarded to the highest bidder. If there are no standout bids, the process will use sealed envelopes, with bidders submitting electronic offers and the top offer winning. The auction details are verifiable on the State Contract Portal.
According to sources from the National Mint and Stamp Factory, this auction is relatively small beside the historic coin demagnetization connected to the euro’s introduction, which saw tens of billions of coins enter circulation between 2002 and 2003. The combined weight of those coins surpassed 30,000 tons. The Bank of Spain typically collects coins and only moves to destroy and auction the metal when large volumes accumulate.
The base budget for the tender, excluding taxes, sits around 19.13 million euros, with the Royal Mint valuing the contract at just over 21 million euros. To keep expenditures in check, the agency linked to the Ministry of Finance split the scrap into nine separate auctions. The first three consignments weigh more than nine tons each and are composed of 925 silver. The largest batch weighs 134 tons and consists of lunifal, an alloy of nickel, iron, aluminum, copper, and manganese. A 74-ton lot of gold appears in the lineup, though this gold is of Scandinavian origin and alloyed with other metals such as copper, aluminum, zinc, and tin, earlier used in creating coins like the current 50-cent pieces. In addition, substantial quantities of aluminum, plated steel, and copper-nickel are offered in the market. [Source: Fábrica Nacional de Moneda y Timbre]
Who might be interested in these auctions? The factory explains that aluminum used in peseta coins can be repurposed for making beer kegs. Copper-nickel can find a place in minting new currencies, piping projects, or the automotive sector. Bronze with aluminum has historically gone into constructing large ship propellers for peseta-scale vessels. Aluminum mixed with magnesium finds uses in the food industry, automotive supply chains, and construction. Silver with 925 thousandths purity can contribute to electronics manufacturing, as well as more everyday items like cutlery or medals.
Difficult operation for buyer
Delivery to the Community of Madrid must be arranged by the winning bidder, as the Royal Mint does not offer home delivery. The purchaser must collect the items, and delays are not tolerated; after 30 days, each day of delay incurs a 1,500 euro penalty. A trailer-type vehicle with a rear loading area, a box height between 1 and 1.20 meters, and no rear lift or retractable loading platform is required, with a maximum of 24 tons per trip. This means the heaviest batch could require at least six trailers.
The specification notes that the coins will be delivered in laminated, de-coinaged form, weighing 585 kilograms per bag and shipped in drums without containers. The buyer should verify the quality of the material. The Fábrica Nacional de Moneda y Timbre typically advises prospective buyers to provide sufficient notice and offers a calibrated scale on loan to sample about 3 percent of the material.
Participation rules are strict: a company must demonstrate a significant business volume to be eligible to purchase the scrap lots, with annual turnover exceeding half a million euros and verified accounts in the Trade Registry. Individuals who are self-employed must maintain inventory records and submit annual accounts as well.
For those interested, bids remain open for 63 days, through September 9th. Prospective bidders should monitor metal price movements, as shifts in the market could render offers outdated, higher, or lower depending on current market conditions.