Canceled coins and dies

Canceled coins are a type of coin error that represents real production waste from the mint. The term “production waste” encompasses all coins that are minted regularly and produced in excessive numbers or entire batches of coins that have been defective and rejected by quality control. Minting errors are almost always intercepted due to the strict controls applied within the mint and are consequently deformed mechanically using two different techniques.

The first technique, performed regularly inside the mint, involves the use of a machine consisting of a conveyor belt that runs under an opposed rotating toothed cylinder, which deforms the planchets with the teeth through the strong friction generated by the rotary motion. Assuming that the dies are also canceled at the end of their useful life before being sent to the foundry for recycling, the second technique, illicitly performed by the press operator, involves the installation of two canceled dies on a normal monetary press.

The cancellation technique for canceled coins in the United States involves the use of a machine called a “canceling machine” or “destruction press.” This machine applies a large amount of pressure to the coin, effectively rendering it unusable and preventing it from being reintroduced into circulation.

The canceling machine typically has two parts: a die with an engraved design and a hammer that strikes the coin against the die. The die has a raised design that is the mirror image of the coin’s design. When the coin is struck against the die, the raised design on the die is imprinted onto the coin, effectively canceling it.

Canceled coins are often collected by numismatists (coin collectors) due to their rarity and unique markings. However, it is important to note that the collection of canceled coins is illegal in some countries, so collectors should check their local laws and regulations before attempting to collect canceled coins.

It is unlikely that the installation of a canceled or defaced die occurs due to negligence on the part of the operator, and the coins affected by the aforementioned dies must be considered artifacts in the Mint. These canceled coins are collected only as curiosities and serve as a reminder of the production waste generated during the minting process.