A collar break happens during the coin striking process. The collar is a piece of metal that encircles the coin blank (or planchet) as it is struck by the dies. Its primary function is to form the coin’s edge, whether it be smooth, reeded, or lettered, and to ensure the coin’s diameter remains consistent. A collar break occurs when there is a crack or failure in the collar itself, leading to a malfunction in how the coin’s edge is formed.