Officials at the Bureau of Engraving and Printing are working with Crane & Co., the Massachusetts company which has supplied the government with paper for currency for more than 130 years, to identify what caused the errors, but it’s unclear if the problem was caused by Crane’s paper or some other element of the printing process.

A person familiar with the situation said that at the height of the printing process, as many as 30 percent of the bills rolling off the printing press included the flaw, leading to the production shut down.

The government said it believes most of the 1.1 billion bills already printed can be salvaged, but any of the bills that were misprinted will have to be shredded.

According to a source familiar with the matter, the bills are the most costly ever produced, with a per-note cost of about 12 cents—twice the cost of a conventional bill. That means the government spent about $120 million to produce bills it can’t use. On top of that, it is not yet clear how much more it will cost to sort the existing horde of hundred dollar bills.

Sorting such a huge quantity of bills by hand, the officials estimate, could take between 20 and 30 years. Using a mechanized system, they think they could sort the massive pile of bills in about one year.

The new $100 bills feature an array of new security features aimed at thwarting counterfeiters, including a blue 3-D security ribbon with small images of bells that change into 100s as the bill is tilted. The strip is woven into the front of the bill. In addition, the new design features an image of a color-shifting bell inside a copper-colored inkwell on the lower front. Officials also retained some older security features, such as portrait watermarks and raised printing. The Geithner bills also cost more to produce than the Paulson version – nearly 12 cents per bill versus 8.5 cents for each Paulson bill.

According to the Bureau of Engraving and Printing Web site, more than “a decade of research and development” went into the new bill’s security features. That increased complexity likely played a role in the recent production errors.

“This is the most complex note that the U.S. government has ever put into circulation,” one Treasury official said. “As the notes become more sophisticated, the printing becomes more sophisticated.”

Only a portion of the nation’s money supply exists in the form of paper money or coins; a larger amount is held in bank accounts and other electronic forms. The Federal Reserve authorizes the creation of paper money based on how much banks request, and the currency is printed by the Bureau of Engraving and Printing, then distributed through the regional Federal Reserve system to banks around the country.

There was $978 billion in paper currency and coins outstanding as of last week, while the total money supply, using a measure that includes money in checking accounts, savings accounts, and money market mutual funds is about $8.8 trillion, according to the Federal Reserve.

The government rarely has encountered serious problems in the production of new currency. One other significant delay came in 1987 when the Treasury announced that technical problems had postponed the issuance of the first redesigned American currency in a half century. The new bills did not begin to circulate for several years.

Related posts:

1. New U.S. $5 Bill Will Get a Digital Debut on September 20
2. Artists & Authors Alley to Debut at Baltimore World’s Fair of Money
3. New $5 Bill Debuts During “Wi-5″ Event

The unprecedented exhibit marks the first time the complete set has been included in the PCGS Set RegistrySM. It also marks the fulfillment of a boyhood dream of the collector who owns the coins, Texas business executive Bob R. Simpson, Co-Chairman of the Texas Rangers baseball club.

“A total of nine off-metal World War II-era Lincoln cents from Mr. Simpson’s collection will be displayed at the PCGS booth (#102) at the FUN convention,” said Don Willis, President of PCGS, a division of Collectors Universe, Inc. (NASDAQ:). “There’s the unique set of three 1943 bronze-planchet cents, a set of three 1944 cents on zinc-coated steel planchets, and three wartime Lincoln cents erroneously struck on silver planchets apparently intended for the production of dimes.”

Simpson wanted to own a 1943 bronze cent error since he was a teenager, and now owns the only-known 1943-D bronze cent as well as other wrong-planchet, wartime cents. All will be exhibited at FUN.

Zinc-coated steel was used for producing cents in 1943 to conserve copper for other uses during World War II, but a small number of coins were mistakenly struck on bronze planchets left over from 1942. In 1944 the Mint resumed use of copper for cent production using recycled ammunition shell cases; however, a small number were mistakenly struck on zinc-coated steel planchets intended for use only on 1943-dated cents.

“Mr. Simpson is the first collector to ever assemble a complete P-D-S set of bronze-planchet 1943 Lincoln cents,” said Laura Sperber, President of Legend Numismatics. “When he recently saw all three coins together for the first time, he said, ‘This is incredible!’ Now, he’s graciously agreed to publicly display them.”

Sperber said that when he was a youngster, Simpson thought he’d actually found a 1943 copper cent in circulation. “But it was not authentic. He still has that in his desk drawer.”

The unique 1943-D bronze cent was purchased by Simpson in September for a record $1.7 million through Legend Numismatics after four years of negotiations with the coin’s anonymous former owner who donated all the proceeds to charity. It is the highest price ever paid for a United States cent.

“It was always special to buy each coin for this set, and until I had all the coins together I just did not realize how important and unreal this project really was! I’m as excited as any collector can be to see this amazing display,” Sperber said.

“Not only is Mr. Simpson’s Set of Off-Metal Cents the All-Time-Finest, it’s the absolute finest possible given the scarcity of the coins,” said BJ Searls, PCGS Set Registry Manager. “Photos of Mr. Simpson’s 1943 bronze and 1944 steel cents can be viewed online in the PCGS Set Registry for ‘Lincoln Cents Off-Metal Strikes, Circulation Strikes (1943-1944)’. The one-of-a-kind complete set has a weighted grade point average of 62.89.”

The coins and their PCGS Secure Plus grades are:
1943-P bronze, graded PCGS MS62BN
1943-D bronze, PCGS MS64BN
1943-S bronze, PCGS AU58BN
1944-P steel, PCGS MS64
1944-D steel, PCGS MS62
1944-S steel, PCGS MS66
1943-P struck on a silver planchet, PCGS AU50
1943-S silver planchet, PCGS AU58
1944-P silver planchet, PCGS AU53

A free, full-color, illustrated PCGS brochure about the coins in the exhibit, “One of a Kind: The Simpson Off-Metal Lincoln Cent Collection,” will be available while the supply lasts at the PCGS booth during the FUN convention.

Established in 2001, the PCGS Set Registry now hosts over 53,000 sets. For additional information about PCGS and its services, visit www.PCGS.com, call PCGS Customer Service at (800) 447-8848, or email info@PCGS.com.

Related posts:

1. Unique Bronze 1943-D Lincoln Cent Sold for $1.7 Million by Legend
2. 1943-S Lincoln Cent Struck in Bronze sold by Heritage for $207K
3. Previously Unaccounted 1943-S Bronze Cent Acquired by Rare Coin Wholesalers

You may have noticed the past two weeks or so we have been saying and doing little with our web site. NEWPS have been minimal and Market Reports and Hot Topics have slowed. We can now tell you why. We have been super busy traveling completing deals-not just any deals, deals that are at world record prices and that include some of the rarest coins on earth! We are now finally back home and are pleased to make the following announcement:

LEGEND NUMISMATICS HAS BOUGHT AND SOLD THE UNIQUE 1C 1943D COPPER FOR $1,700,000.00!

We actually purchased a 3 coin coin deal for $2,000,000.00. We figured the 1943D at $1.7 million cost. The other two coins in the deal were the finest 1944 P Steel cent PCGS MS64, and a 1C 1942 PCGS 65 made out of white metal. Yes, you have read this right-3 pennys for $2 million dollars!

The 1943D and the 1944P are both now part of the ONLY COMPLETE PDS sets for their metals. The steel cent collection is by far the finest, as are the coppers. We are hoping to display both these sets at the PCGS table at FUN 2011.

Hard to believe, but Legend tried unsuccessfully for four years to buy the 1943D. The seller in the end was still reluctant. However, we can state ALL of the monies he received from the sale are going to a pet charity project of his. The seller (who wishes to remain anonymous) was represented by Lincoln Cent Specialist Andy Skrabalack of Angel Dee’s.

Our customer is thrilled to own the 1943D. Ever since he heard the coin existed, we had been sent on a mission to acquire it. His desire to own the complete and only PDS copper set came from his finding what he thought was a 1943 copper when he was young. Sadly, this piece was found to be a fake. Still he keeps this coin in his desk draw. He believes 43 Coppers are one of the ultimate classic rarities (and so do we). While the price we paid was stiff, the monies went to a good cause and the coins are now locked away in a great home.

Legend Numismatics has handled MANY million dollar plus classic rarities over the years. The 1943D really is one special highlight for us. We thank the seller and congratulate the new owner. For us, it really has been a career highlight.

WHAT ELSE DID WE TRAVEL FOR?

We have now flown several coast to coast trips over the past 2 weeks. There have also been stops in Dallas, NYC, and Denver in between.

One exciting collection we purchased was a spectacular Pattern Collection. When we got the call we were like, “oh great, more patterns”. This deal turned out to be an incredible “old time” collection with the majority of the coins being raw. Highlights included Earring Quarters, Amazionan Dollars, and several R-8 Seated patterns. These coins will be sent in for grading shortly. We did not grade anything less than PR65! ALL of the coins have been off the market for at least 20+ years. Guess we can never have enough great Patterns!

Besides patterns, we also bought and sold a 50C 1919D PCGS MS65. The price was in excess of $200,000.00. This sale now completes what maybe the second finest Walker set assembled (no, its NOT registered).

Over the next 2-3 weeks as we get coins back from the services, you’ll see some spectacular Type we picked up on these road trips. Most of the coins have NOT been seen in at least a decade.

MARKET ACTIVITY

Some skeptics will say our customer base does not resemble the true marketplace. While not everyone pays almost $2 million for a penny, the fact that we have so many eager buyers at the higher levels shows strong confidence in the market. If there were only confidence in MS65 Walkers, the market would be in trouble. We have done substantial business not “on the radar” in the past 2-3 weeks. We though it would have been a “dead time” and were we wrong!

People are definitely there for the “right” coins. Still need rare PR gold, HR’s in MS67, GEM silver Bust coins, MS 65 and better Seated Dollars,etc. Gold certainly is helping things too: We have been running tape messages for commoner coins like non 1908 PCGS MS66 CAC Saints. We will buy EVERYONE that has a green bean ever made (we are paying $3,450.00-price subject to change). Our demand is that strong. Maybe now you can see that we are not exaggerating when we say: if we had the right coins, we could sell at least $20,000,000.00 immediately.

NO LONG BEACH FOR US

Now you can understand why we will NOT be in attendance at the Long Beach Show now going on. We’re exhausted and decided to take this show off. This is only the second time in 30+years we have missed a Long Beach Show.

Legend WILL attend and have its double table at next weeks Whitman Show in Philadelphia.

THE SIMPSON DUPLICATE PATTERNS

We finally have the balance of the duplicate patterns from the Simpson Collection ready for sale. We will bring them to Phili and we will start posting them shortly on our web site. There are so many coins here it will take us 3-4 postings to list everything!

The Denali Collection will have a full color catalog in another week or so and then we will being selling those coins.

We appreciate all the interest that has been expressed in these two magnificent groups of coins.

Related posts:

1. Unique Bronze 1943-D Lincoln Cent Sold for $1.7 Million by Legend
2. Legend Numismatics Arranges $30+ Million Sale of Pattern Coins
3. Finest Lincoln Cents & Registry Rarities Star In Heritage’s $11 Million Houston Coin Auction

The only known 1943-dated Lincoln cent mistakenly struck at the Denver Mint on a bronze planchet has been sold for a record $1.7 million by Legend Numismatics of Lincroft, New Jersey. The unique coin, not publicly known to exist until 1979, is graded PCGS MS64BN.

The new owner is a Southwestern United States business executive who wants to remain anonymous, but who plans to exhibit this coin and others in January at the Florida United Numismatists convention.

He also purchased in the same transaction through Legend a 1944 Philadelphia Mint cent struck on a zinc planchet, graded PCGS MS64, for $250,000, and an experimental 1942 Philadelphia cent mostly composed of tin for $50,000. The unnamed new owner plans to exhibit these coins and others at the Florida United Numismatists convention in January.

(Photo credit: Legend Numismatics.)

“The 1943-D bronze cent is the most valuable cent in the world, and it took four years of aggressive negotiations with the coin’s owner until he agreed to sell it.”

“The new owner is proudly now the only collector to ever own the all-time finest and complete sets of Philadelphia, Denver and San Francisco 1943 bronze cents and 1944 steel cents,” said Laura Sperber, President of Legend Numismatics.

“The new owner is a prominent Southwestern business executive who’s been collecting since he was a teenager, searching through pocket change looking for rare coins. As a youngster he thought he’d actually found a 1943 copper cent in circulation but it was not authentic. He still has that in his desk drawer, but now he’s the only person to ever assemble a complete set of genuine 1943 bronze cents, one each from the Philadelphia, Denver and San Francisco Mints. He will display that set at FUN along with his 1944 Philadelphia, Denver and San Francisco zinc cents,” said Sperber.

The anonymous collector who formerly owned the coin “donated it to a charitable organization so they could sell it with all of the proceeds going to the charity,” according to Andy Skrabalak of Angel Dee’s Coins and Collectibles in Woodbridge, Virginia who acted as agent on behalf of the former owner.

“As a specialist in small cents, this transaction is the ultimate accomplishment for me and I’m privileged to be part of it. I don’t think it will ever be duplicated in my lifetime,” said Skrabalak.

Zinc-coated steel was used for producing cents in 1943 to conserve copper for other uses during World War II, but a small number of coins were mistakenly struck on bronze planchets left over from 1942.

“We estimate that less than 20 Lincoln cents were erroneously struck in bronze at the Philadelphia and San Francisco Mints in 1943, but this is the only known example from the Denver Mint,” explained Don Willis, President of Professional Coin Grading Service.

Sperber said the collector’s historic, mis-made World War II era cents will be displayed during the first three days of the FUN convention in Tampa, Florida, January 6 – 8, 2011.

For additional information, contact Legend Numismatics at (800) 743-2646 or visit online at www.LegendCoin.com.

News media contacts:

Laura Sperber, President of Legend Numismatics who obtained and sold the $1.7 million 1943-D bronze cent, Office (732) 935-1795

Andy Skrabalak, Owner of Angel Dee’s Coins and Collectibles and agent for seller of the unique coin, Office (703) 580-6969

Don Willis, President of Professional Coin Grading Service, the company that authenticated the unique cent, Office (949) 567-1154

Related posts:

1. 1943-S Lincoln Cent Struck in Bronze sold by Heritage for $207K
2. Unique 1943 Bronze Cents Set To Be Displayed at the FUN Show
3. Previously Unaccounted 1943-S Bronze Cent Acquired by Rare Coin Wholesalers

A Weekly Column by Greg Reynolds

For decades, the Long Beach (CA) Coin, Stamp and Collectible Expo has been a major event for coin collectors. The third Long Beach Expo of 2010 will start on Sept. 23 and end on Sep. 25. As usual, Heritage will conduct the official auction. Earlier, in Los Angles County, the firms of Bonhams and of the Goldbergs will also conduct auctions. The Goldbergs will offer a very wide variety of coins on Sept. 19th, 20th and 21st at the Beverly Hills Crowne Plaza.

I. Eliasberg 1893-S $5 Gold Coin

At the ANA Convention in Boston, I was fortunate to have the opportunity to closely examine some of the coins in the upcoming Goldbergs auction. One of my favorites is an 1893-S Half Eagle ($5 gold coin) that was formerly in the Louis Eliasberg collection, which is the greatest collection of U.S. coins that was ever formed.

Many gold coins with an Eliasberg pedigree are of tremendous quality, and this 1893-S is one of them. It is PCGS graded MS-66, and was certified at some point in the mid 1990s. I grade it as 66+. Furthermore, it has a sticker of approval from the CAC, which indicates that experts at the CAC determined that its grade is at least in the middle of the 66 range.

This 1893-S Half Eagle has great luster and an excellent strike. It is wonderfully brilliant. This coin has almost no contact marks or hairlines. The inner fields exhibit some pleasant, natural light green toning.

The 1893-S Half Eagle is somewhat common in grades up to MS-62, in which range it is valued only slightly higher than the most common Liberty Head ‘With Motto’ Half Eagles. In MS-63 and MS-64 grades, an 1893-S Half Eagle commands a substantial premium. In MS-65 and higher grades, it is an extreme condition rarity. At most, one half dozen true gems exist, and probably not even that many. This Eliasberg 1893-S is the only 1893-S that is graded MS-66 by the PCGS or the NGC, and none have been certified as grading higher than MS-66. There is certainly a good chance that it is the finest known.

In MS-66 grade, the PCGS price guide values this 1893-S at $22,500 and very common dates at $7500. A rival price guide at Numismedia.com values a MS-66 grade 1893-S, which must be this one, at $20,150. An old green PCGS label, an Eliasberg pedigree, and a CAC sticker all have the potential to bring about a price that is higher than would otherwise be realized. This coin, though, speaks for itself. It is exceptionally attractive and a delight to view.

II. Carter 1797 ’small eagle’ $10 Gold Coin

In the upcoming Goldbergs auction, the re-appearance of the NGC graded MS-63 1797 ‘Small Eagle’ Eagle is newsworthy. Gold coins were first struck at the U.S. Mint in 1795. The major varieties of the first type of Eagles that are collected as if they were distinct dates are: the 1795 with thirteen leaves on the branch, the 1795 with nine leaves on the branch, the 1796, and the 1797 ’small eagle’. This first type has a bust of Miss Liberty on the obverse (front) and a relatively small eagle on the reverse (back). The second type of Eagles, which date from 1797 to 1804, have the same general obverse (front) design along with a much different reverse (back) design. The new reverse features a large or heraldic eagle. It is not just the size of the eagle that is different; the style of the eagle and other reverse design devices are also different.

There are fewer than twenty-five known of the 1795 ‘Nine Leaves’ variety. The 1797 ’small eagle’ issue is extremely rare as well. I believe the estimate in the BD book that there exist fifty-five to sixty-five coins of this issue is incorrect. I theorize that fewer than fifty 1797 ’small eagle’ Eagles are known.

In May 2007, I wrote about the 1797 ’small eagle’ Eagle issue and I discussed this exact same coin. (Please click here to see that article.) Through research, I then identified it as the very same 1797 ’small eagle’ Eagle that was in the famous Amon Carter collection, which Stack’s auctioned in Jan. 1984.

Both Amon Carter, Sr. and his son, also named Amon, were dedicated collectors. The Carter collection contained an excellent array of U.S. gold coins, especially early issues, and one of the all-time best assemblages of U.S. silver dollars and Trade Dollars. The 1794 silver dollar that is PCGS certified Specimen-66 was part of the Amon Carter collection and was sold in the Jan. 1984 auction event.

The Carter 1797 ’small eagle’ Eagle in the upcoming Goldbergs auction is the highest graded coin of this issue. The NGC has graded three as MS-62 and two of these are definitely different coins, the coin that ANR auctioned in August 2006 and the 1797 ’small eagle’ Eagle that Heritage auctioned in January 2004. In 1996, Superior auctioned an NGC graded MS-62 1797 ’small eagle’ Eagle. I have not viewed a copy of that catalogue. I wonder if the 1797 Eagle that Superior auctioned in 1996 and the NGC graded MS-62 coin that Heritage sold in 2004 are the same.

One of two Bass 1797 ’small eagle’ Eagles has had three different certified grades in each of its three recent auction appearances. In 1999, it was PCGS graded “AU-58,” in 2003, NGC graded MS-61. Before ANR auctioned it in Aug. 2006, the NGC upgraded it to MS-62! The other Bass 1797 ’small eagle’ Eagle is not certified and remains in the Harry Bass Core Collection. It is believed that it would grade MS-61 or MS-62, if it was submitted to the PCGS or the NGC. I have never seen it.

Though its grade is not in the upper reach of the 63 range, this Carter 1797 ’small eagle’ makes the MS-63 grade, in my view. The lines on the obverse are adjustment marks that were made at the U.S. Mint before striking. Blanks that were overweight were filed down. It is common for early gold and silver coins, especially those dating before 1807, to have adjustment marks. These do not bother me much. Even if a grader found the adjustment marks to be very bothersome, this coin would still merit a grade of at least a high end MS-62, assuming that it has not changed since I examined it in 2007. Given all the imperfections that pre-1800 coins tend to have, this coin’s relative lack of problems is particularly important.

Many early Eagles appear washed-out, have many noticeable contact marks, and/or are characterized by numerous hairlines. This coin does not have such negative characteristics. Indeed, as I remember, there are just a few minor contact marks and no significant scratches. It has decent color. This 1797 ’small eagle’ Eagle is an appealing coin.

III. Davy Collection of Half Cent Errors

The Goldbergs auction events will be highlighted by the “Davy” collection of half cent errors and the Dan Holmes collection of large cent errors. Please read my discussion of the Dan Holmes collection of early date large cents, which were auctioned about a year ago, and click here to read my June 9th column that covered some of Holmes’ Middle Date large cents.  As I have written so much about large cents over the last three years, I will focus upon half cent errors here.

A collector in the Midwest, who prefers to remain anonymous, formed the “Davy” collection of half cent errors. My strong impression is that it is the best collection of half cent errors to ever be publicly sold. Plus, I am not aware of a finer collection ever having been sold privately.

Half cents and large cents were minted from 1793 to 1857, though not in every year in between. Large cents (pennies) are similar in size to quarters, and half cents are a little greater in diameter than five cent nickel coins are now. (Five cent nickels were first minted in 1866; Three Cent Nickels were first minted a year earlier.)

The Davy and Holmes collections each contain literally hundreds of errors. There are several kinds of errors. Often, coins were struck off-center. Sometimes, when a coin was struck off-center, it was struck again, or even a third time, to ‘correct’ the initial error. There are numerous coins that were each struck multiple times. In other cases, the edge lettering is blundered. Coins that are too light in weight, or too heavy, are also errors. Coins that were struck on planchets (prepared blanks) that had various kinds of sharply noticeable imperfections, too, fall into the category of errors.

I find brockages to be most significant of early error coins. These are more interesting, in my view, than the coins that are struck off-center, or even struck off-center two or three times. For an explanation of a brockage, please see the appendix below. In some ways, a brockage has two obverses or two reverses. Usually on a brockage, one side is a regular obverse (front) or reverse (back) and the other is an incuse (sunken) backwards image of an obverse or a reverse design.

“Brockages have always been fascinating to most all collectors of early U.S. coins,” remarks Greg Hannigan. “They are a lot rarer than some of the other categories of errors.”

An 1803 half cent error, which will be sold as lot #125, is an obverse brockage and it is struck five per cent off-center. So, this piece is characterized by two major kinds of errors. The cataloguers grade it as Fine-15. “Sharpness VF-20.” they say, “and the eye appeal is excellent, but there are a few dull contact marks on the incuse [sunken devices] brockage side.” It was formerly in the collection of Richard Picker and it is estimated, by the cataloguers, to bring at least $4000, maybe much more. There are many items in the “Davy” collection that have low estimates below $500, though it is plausible that some items will bring multiples of their low estimates.

An obverse brockage of an 1804 half cent will be sold as lot #145. It is of the famous spiked chin obverse variety. An 1806 half cent reverse brockage, which has no visible date, will be sold as lot #213. I find this piece to be entertaining. Seeing reverse designs on both sides of the same early U.S. Mint item, including one with sunken devices, is curiously cool.

U.S. Mint personnel often thought of brockages of early copper coins as failed strikes and sent them through the system again, as if they were bare planchets (prepared blanks). So, a coin, with a proper obverse and reverse, may be ’struck over’ a brockage. These are sometimes particularly noteworthy.

A 1795 half cent ’struck over’ a reverse brockage large cent, lot #31, caught my attention. It is estimated to bring $300 or more. A similar error will be sold as lot #114. It is an 1802/0 half cent that was “struck over a cut-down spoiled large cent with an obverse brockage,” explains the cataloguer. “The obverse of the half cent is struck over the incuse off-center brockage side of the large cent. Incuse [sunken] letters from the undertype cent show along the throat and jaw.” It is said to be one of the most valuable half cent errors in this collection.

Jim McGuigan finds ’struck over’ brockages to be among the most desirable of all early copper errors. McGuigan is a specialist in pre-1840 U.S. coins of all metals. Jim personally collects half cents and much of his collection is listed in the PCGS registry. He reveals that he “started collecting half cents in 1957.”

McGuigan declares that the “Davy collection is the best ever of half cent errors, both in quality and quantity.” Greg Hannigan “would agree that it is best collection of all time of half cent errors.” Hannigan is a leading dealer in large cents, and handles several other types of early U.S. coins. Hannigan particularly likes “double struck and triple struck errors.” Interestingly, Hannigan finds that “early copper errors did not get any respect until the last twenty years.”

The consignor is not named “Davy.” He has been collecting errors, and many other coins, for decades. McGuigan “is not aware of anyone else ever having more than a hundred half cent errors.” The “Davy” collection contains more than three hundred.

IV. Appendix: What is a Brockage?

Many coin enthusiasts, including myself, find brockages to be among the coolest kinds of errors. For a brockage to come about, first, a coin must be, for one reason or another, not ejected or otherwise removed from a mechanical coining press. Accidentally, it remains on one of the dies. (Please see my column of Sept. 1 for a definition of a die.) Secondly, when the next planchet (prepared blank) is fed into the coining press, it will, during striking, become sandwiched between an already struck coin and one of the two dies. Third, if the design devices on one side of the already struck coin become imparted onto one side of a fed planchet (prepared blank) and the other side of this planchet is struck by a die (as it should be), then a brockage comes into existence.

Yes, this process may sound confusing and it would be even more confusing to explain the variations of brockages. For simplicity, I will explain only the type of brockage that is most often seen, an obverse (Front) brockage that comes about after a struck coin is left in the press on top of the bottom die that is the reverse (tail) die. When the next planchet (prepared blank) is fed into this press, it falls on top of the coin that was not ejected, and then the ‘hammer’ die comes smashing down on top of this planchet (prepared blank), which is thus sandwiched between a coin and an obverse die. So, the obverse die imparts (as it should) an obverse design to the obverse of the planchet. The leftover coin, however, is ‘in between’ the reverse die and the obverse die. So, a reverse design is not imparted. Instead, the obverse of the leftover coin is impressed into the underside (reverse) of the planchet. Therefore, an incuse (sunken) and ‘backwards’ transformation of the obverse design is imparted into the underside (‘reverse’) and the newly created error has a normal obverse and an incuse and backwards version of the obverse design as its ‘reverse’!

Yes, in some cases, the hammer die is the reverse die, but this is beside the point. I am using the most typical scenario of the making of a brockage to illustrate the concept. In other situations, a brockage, which features reverse designs, may come about when a planchet is sandwiched in between the bottom (anvil) die and a struck coin that clings to the hammer die, sometimes by forming a ‘cup’ shape. It not necessary to understand all the variations in order to understand how most brockages are created.

©2010 Greg Reynolds

Related posts:

1. Coin Rarities & Related Topics: Southern California Auctions and Market Realities
2. Coin Rarities & Related Topics: 1794 Silver Dollar sells for $1,207,500, and More Auction News
3. Coin Rarities & Related Topics: Stack’s auction of the W. L. Carson Collection of Proof Coins