Detecting altered or counterfeit
Presidential dollars

These coins can be manufactured, caveat emptor 

by Jack L. Earl

With all of the publicity and news stories everyone must know about the new Presidential dollars and the  plain edge error coins.  The so-called Godless Dollars.  If you aren't up do date on these coins, read our other guide for more information.

http://reviews.ebay.com/Washington-Dollar-Edge-Lettering-Error-inverted-missing_W0QQugidZ10000000003081603

The Washington dollars were released in large quantities but the other dollars are quite scarce and much more valueable.  The edge lettering is still applied in a second step but is now applied right after the striking of the obverse and reverse without being moved to a second location, which should greatly reduce the number of plain edge coins.

If you already know about the dollars and are considering buying one consider the following: When the coins were first announced numismatists were discussing the innovative edge lettering and it was agreed that coins were likely to be found with missing edge lettering.  It seemed obvious that with all of the millions of coins the mint would produce that some coins would miss the edge lettering step. What is suprising is the huge numbers that have been found.  What is also obvious is the relative ease with which a normal coin can be altered to have the missing edge lettering by simply turning the coin on a lathe and filing the edge until the letters are gone. Fortunately there are also ways to verify the authenticity of these coins.

1. Weight    A normal Washington dollar will weigh 8.1 grams or 125 grains.  These are very tight tolerences and a coin that is light at all is very suspect.

2. Size    A Washington dollar should measure 1.043 inch with a tolerence of only plus or minus .003.  All of those I've measured have been between 1.043 and 1.044.  I have not found one that has been undersize.  Of course that doesn't mean that aren't any but a genuine coin must still be within the minimum size of 1.040 inch.

3. Visual Inspection    Visually inspecting the edge of a coin with missing edge lettering, especially next to a coin that has the normal lettering.   First, the edge will be flat but there should be a very small bevel on each side.  If the coin has been turned down these bevels could be missing or reduced in size and squared off.  On some of the fakes they tried to duplicate the bevels but they were larger and more rounded.  Again, compare it to a normal coin.

Now the most obvious thing is to check for lines that run around the circumference.  If there are lines running around the edge of the coin, it is almost certainly a fake.  These are the lines left from turning the coin down.  If the edge is polished this is a sign that the edge of the coin was polished to eliminate the lines.  A coin with a smooth polished edge is fake.  A coin that has been turned on a lathe may also have a difference in color so that it looks more like the edge of a clad quarter, with lighter color towards each edge and a darker band in the center.

Now look at the edge of the normal coin (or better yet, look at several).  Look at it under a good light (100 watt bulb) and use a 5 power magnifying glass or loop and as you go around the edge of the coin rock it back and forth a little to let the light play over it and this is what you should see.  Under magnification the edges tend to be a little uneven and look kind of rough.  There will also be areas that are shinier or with luster similar to the obverse and reverse and there will be duller areas.  The duller areas will have what looks like small lines but they will go from obverse to reverse (heads to tails), not around the circumference.  These are the lines made during the striking of the obverse and reverse.   There will also be little scratches and dings that you would expect to see from having been hauled around with thousands of other coins.

You should have a pretty good idea now what a normal edge should look like so now look at the error coin side by side under the magnifying glass. The edges should look identical except for the missing lettering.  If they do then the coin is most likely to be genuine.  Coins that have been turned down will not have this "original" and somewhat rough look.

If the coin passes the weight, size and visual tests it is most likely that it is genuine.  If you don't trust your own judgement you can buy a certified coin but you will pay more for it and the grading services have no secret testing methods.  PCGS and NGC authenticate coins using these same methods.

Courtesy of Olympus Gold and Rare Coins