So, what is the deal, can you melt your nuggets to consolidate them or do
you need a license?


Effective Jan 1, 1975, that is no longer true. Prior to that date, it was
illegal to melt or otherwise process gold without a federal license under
penalty of $10,000 fine and 10 years in prison, as I recall. There are
currently no regulations pertaining to the ownership or processing of gold.

What reason does this person have for melting his gold?

It was just something that came up in conversation, all his gold is natural
nuggets and flakes.

--
Dennis