Other than being informed your rare and valuable coin has damage you didn't see initially, perhaps the only thing more frightening to a coin collector is learning your coin isn't even genuine. I'm sure one or both of these situations happened to many of us at one time, and after our denial wears off (if ever), it can be a painful and unforgettable experience that lingers for years; if you can't get refunded, it makes it even worse. Whether you learned it was once a genuine coin that has somehow been modified (i.e., altered), or absolutely nothing about the coin is genuine (i.e., counterfeit), oftentimes it makes no difference in that your coin may now be considered worthless to most collectors. In situations like this, usually the best you can do is learn from your mistakes and move on.
Unfortunately, the technology to alter/fake coins and currency is not only getting better and cheaper to acquire, it's also getting easier to use; no longer is this phenomenon limited to the technically savvy to produce above-average fakes. As the popularity of Mint error coins and their selling prices continue to trend upward, so has the number of opportunistic miscreants looking to flood the market with their numismatic forgeries. And since very few coin collectors and dealers specialize in "FIDOs" - freaks, irregulars, defects, and oddities - most aren't equipped to verify their authenticity accurately. In fact, even experienced authenticators at professional grading companies are fooled at times.
So what should we do if we're stuck with an altered or counterfeit coin, be it a Mint error or a "normal" coin? Of course, the natural and logical reaction might be to throw all of them in the trash. However, I am offering an unconventional alternative that may be unpopular with some collectors and dealers. My advice is this: hold on to a few of them. In fact, I recommend building a small collection of them, especially for a series, variety, denomination, and/or error type you collect. What? Why is that?
For one, by acquiring and studying altered and counterfeit coins, along with researching how genuine coins have been minted over time, you'll develop a better sense of what is and isn't authentic. Learn things like die markers, variations in metallurgic composition that occurred throughout the years, and what characteristics should or could be present on certain Mint error types. Take high-definition photos of your known fakes and "suspect" coins and compare them to certified, genuine coins on sites like Stacks Bowers®, Heritage Auctions®, Great Collections®, Sullivan Numismatics, and Mint Error News™. Over time, your skill level and experience may not only help you find a diamond in the ruff, but you'll become less likely to be duped into buying an altered or fake coin.
The second reason is because just like in the art world, some fake and altered coins - including a few inauthentic Mint errors - are actually desirable and worth a premium to some collectors. But before I get into why that is and which ones are worth money, I must be clear that 99.9% of all fake and altered coins are rubbish. For example, lead-cast counterfeits, mass- produced die-struck fakes (often coming from China), "vice jobs" simulating brockage errors, and coins where acid was used to remove clad layers or copper plating on zinc cents, are complete junk. (Maybe just save one of each as educational pieces.)
O.K., but what makes one fake worth money while another is considered worthless? The most significant factors as to what makes a particular fake or altered coin desirable depends on whether or not most or all of the following factors have been met:
- Did the coin(s) make headlines, and/or was it (or is it still) controversial?
- Is the coin a quality fake? For example, did it fool the public and/or even the experts for a while?
- What was its impact on the hobby (and perhaps the public overall) upon discovery?
- What are some of the unique and identifiable characteristics to it?
- Is there a known counterfeiter(s), and if so, did the counterfeiter(s) get caught? If so, how did they get caught, and what eventually happened to them?
- In its totality, is the overall story surrounding the coin(s) intriguing?
- How many are estimated to exist?
- And do the number of interested collectors outnumber the coin's availability?
Some collectors and dealers have taken umbrage to my recommendation that collecting a few fake and altered coins is good for the individual collector and the hobby overall. For example, some have claimed I am simply "promoting" counterfeiting, which of course is untrue. As a former U.S. Customs inspector in Buffalo, NY, I know firsthand how counterfeit merchandise adversely affects businesses, consumers, and the economy. Others have said I am ignorant of the law and will wind up getting people arrested. Specifically, they claim it is "illegal" to (a) own a fake and (b) it's illegal to knowingly sell a fake to someone. *A handful of U.S. coins are illegal to own because they were never officially and legally circulated. Two examples include the 1933 gold $20 Double Eagle and experimental 1974 aluminum Lincoln cents, both which the government can legally confiscate without compensation.
However, neither of these assertions are true either. What you can't do is: (a) knowingly sell a fake coin as "genuine" with the intention of committing fraud; (b) knowingly spend a fake coin in a transaction to defraud another; (c) produce your own coins (or dies) to replicate legal tender coins, and; (d) "alter, deface, mutilate, impair, diminish, falsify, scale, or lighten" domestic or foreign coins/currency being used as currency in the U.S. (See federal laws covering "Counterfeiting and Forgery" found in Title 18, Chapter 25 in the U.S. Code of Regulations.)
As I explained earlier, collecting and studying some fake and altered coins, and learning how genuine coins have been made over time (and how some Mint errors occur), will absolutely give you an edge as a collector. The hobby overall will benefit by you sharing your knowledge with fellow collectors. With millions of inauthentic coins and currencies flooding the numismatic market each year, we need all the help we can get. Knowledge is useless if it isn't shared, and as with most hobbies, the learning never stops.
O.K., so what are some examples of collectible counterfeits and altered coins that are worth some money? For this article, I narrow the field to those which resemble authentic Mint errors. First on the list is an in-collar, double-struck 1964 Lincoln cent, but it was only double-struck on the obverse side. I own five of these, and from time to time I see others listed as genuine errors on eBay® and Facebook® groups with asking prices over $300. Known as the "Piacentile-Sheiner" cent, these intentionally-altered coins are quickly catching on as a collector's item.
In the mid-1960s in N.Y. City, Victor Piacentile (a.k.a. Victor Pease) and coin dealer William Sheiner were marketing 1964 Lincoln cents that were double- struck, rotated in-collar errors which they claimed were "discovered" in U.S. Mint bags. Not only did they advertise these for sale (including in The New York Times), but they even staged a presentation to collectors at a N.Y. hotel where they opened up a "sealed" bag and "discovered" some inside. The idea that both men were able to "predict" there would be this very Mint error inside a "sealed" Mint bag made their story too fantastic to believe.
Upon investigation by the U.S. Secret Service after receiving some complaints, charges were filed against the pair which included mail fraud, fraudulent possession and sale of altered coins, and conspiracy; roughly 100 were sold with a couple hundred more discovered after searches were conducted. At trial, Mint experts testified there is no way the defendants' coins were produced at the Mint, especially because the diameter was much wider than normal and wouldn't expand if struck completely inside the retaining collar. It was suspected with a great deal of certainty that a fake obverse die struck the coins after leaving the Mint. (There are a few genuine proof cents with only one side being double-struck and rotated, and I've also seen one genuine non-proof Jefferson nickel.) The court agreed the two conspired to commit fraud, and because they used the U.S. Mail as an avenue to conduct their illegal activity, both men were found guilty of mail fraud and conspiracy (plus additional charges separately) and sentenced to three months in prison with two years probation.
In terms of what these are worth, there aren't any formal records of sales that I can find, and very few people actually know what this altered coin is or the story behind it. If I had to put a value on these, I know of a couple unpublished sales where these sold as altered coins for $40 - $75 depending on condition. Grading company Independent Coin Graders (ICG) slabs fakes for educational purposes, and with some help from Fred Weinberg who verified the story surrounding these cents, I became the first person who had the "Piacentile/Sheiner Issue" description put on the label. Graded MS-64RB.
Notice the obverse side was struck twice with the second strike being slightly rotated, while the reverse was struck only once; this is because the obverse was struck a second time with a fake die. Though this error type is possible if one of the dies rotates before striking the planchet again, this particular one is inauthentic.
Next on the list is another intentionally altered coin, but it wasn't initially marketed as a genuine Mint error. However, those who come across these, and don't know their history, often assume it could be. For example, I've dealt with collectors who think this Liberty Head nickel could have been struck on gold stock, thus making it a wrong stock/off-metal error. After all, there are genuine Indian Head cents, Lincoln cents, and a Buffalo nickel struck on gold planchets, so it is at least plausible there could be a gold Liberty nickel on one as well. But as you can see, it was plated long ago to appear as gold. It even had edge reeding applied after it was minted as genuine gold/silver coins have, however the pattern is inconsistent. But why plate this Liberty nickel in particular?
On February 1st, 1883, the Mint released this new "Liberty" nickel series to the public. However, no one at the Mint at first realized or was too concerned that the new five cent nickel lacked the word CENTS on it; the reverse simply had a Roman numeral "V" meaning "five." Its nonexistence opened the door for criminals who sought to capitalize on an opportunity to plate them in gold, add edge reeding, and then pass them off as $5 gold pieces. However, the U.S. Secret Service was soon receiving complaints from business owners and bankers that racketeers - people who purposely engage in fraudulent business dealings - were passing off these gold-plated "racketeer" nickels as $5 gold coins. Newspapers from California to Washington, D.C. to North Carolina reported the scam to inform the public.
After weeks of complaints and bad media publicity, the government finally caved and began production of new reverse dies on March 11th, 1883. The word CENTS was added to the bottom (lower left) which also saw the motto E PLURIBUS UNUM being moved to the top to accommodate the change (and are known as "Type 2"). Today, "Racketeer" nickels are one of the more popular altered coins. Dare I say "genuine" ones should (a) be in a very high grade but dull in color and (b) have very slightly worn and dull edge reeding (center right). Like 1944 steel cents plated post-Mint, these are often faked/altered and plating or replating leaves an unnatural shine. Rumors that these were plated initially by a deaf-mute man named "Josh Tatum" are still unsubstantiated. Many decent examples are within the $80 range.
An 1883 "Racketeer" Liberty Nickel
Edge View of a "Racketeer" Nickel with a Reeded Edge
Edge reeding was applied to Racketeer nickels to mimic the reeding found on genuine gold (and silver) coinage. It exists to help prevent fraud as some would clip off parts of the coin and sell it for scrap, yet continue using it as a "whole" coin.
Type 2 Reverse: With "CENTS"
Type 1 Reverse: No "CENTS"
Note the changes to the Liberty Nickel's reverse design made within the same year - 1883 - to address the issue capitalized on by "racketeers." Can you spot the differences?
The third featured coin is one of the most well- known fakes in American history: Henning Nickels. Unlike 1883 "Racketeer" Liberty nickels which are genuine coins that were later altered post-Mint, Henning nickels are 100% counterfeit as both the planchets and the die strikes are fake. And though neither of these nickels were created to be passed off as Mint errors, many collectors who come across these for the first time initially think they could be.
In the mid-1950s, Francis Leroy Henning minted approximately 500,000 fake Jefferson nickels in Erial, New Jersey with roughly 100,000 of them making it into circulation. Though he produced five different dates, it was his 1944 issue that did him in. You see, nickels from 1942-1945 containing 35% silver are supposed to have a large mintmark above Monticello's dome; these are known as "war" nickels. In haste, Henning didn't strike his 1944 issues with a reverse die featuring that oversized mintmark (lower left). Though one single missing letter on a nickel may seem rather insignificant, the 1944 "No P" Henning nickel caught the attention of collectors and the U.S. Secret Service, and ultimately led to Henning's imprisonment.
O.K., but why would someone confuse his fake 1944 "war" nickels as possible Mint errors? There are actually a few reasons why. For example, some coins produced at the Mint over the years mistakenly never had their required mintmarks added to them. (Technically, these would be categorized as "die varieties," not "Mint errors.") Many of you may be familiar with proof issues lacking the "S" mintmark like some 1990 cents, 1971 nickels, 1968, 1970, 1975, and 1983 dimes, and a 1976 dollar; non-proof issues include some 1982 dimes missing the "P" mintmark.
1944 "No P" Henning Nickel: Counterfeit
Genuine "War" Nickel
Note the oversized mintmark above
Monticello's dome on the reverse.
A second reason is that sometimes the buildup of hardened grease from the lubricated coining presses can migrate into the die-striking chamber. This gunk can fill in and clog up areas of the die's face where lettering, dates, and designs are located. Just as something stuck on the bottom of your shoe would show footprints with an interrupted pattern of the shoe's outsole, this grease can result in missing lettering, dates, and/or designs on a coin. And, yes, sometimes this grease can impact just a single letter. For example, featured on the right is a genuine 1944-P "war" nickel with it's mintmark missing. Coin errors like this are referred to as "grease strike-throughs" or even just "greasers."
Lastly, someone could confuse his 1944 "No P" counterfeit "war" nickels as genuine Mint errors because their metallic composition is wildly incorrect. Though his other four non-wartime dates are close to the metallic composition of genuine nickels, if scanned using X-ray florescence, his 1944 wartime issues will show they lack any silver content. Interestingly, there are some genuine "war" nickels (i.e., Type 2 with 35% silver) which were struck in error on normal, non- wartime-issue 5¢ planchets (i.e., Type 1); these are referred to as "transitional off-metal" errors. (Some have also been struck on planchets intended for foreign coinage made at the U.S. Mint.) Thus, someone could mistakenly assume their 1944 "No P" fake could be a combination of a "greaser" missing the mintmark struck on a transitional non-silver planchet. Although that would be highly unlikely, it's not impossible.
As for a value, 1944 "No P" Hennings sell for around $200+, with his other dates ranging from $400 - $900+ depending on rarity and condition. (See my book, The Henning Nickels Collector's Guide, for more detailed information on these fascinating fakes.)
Genuine 1944-P: "Greaser"
Note the "P" mintmark on this greaser is just barely visible.
A Poorly-altered 1944-P
You know a counterfeit coin has numismatic value when even the "genuine" fakes start getting faked. Someone likely altered this 1944 nickel to trick someone into thinking it was a Henning issue.
The Controversial 1959-D Hofmann "Mule"
Lincoln Cent with a "Wheat" Reverse
Genuine or Not?
Photos used with permission from Glenn Onishi, C.O.O.
of Ira & Larry Goldberg Coins & Collectibles, Inc.
Then there is this coin above which is one of the most expensive "authenticity-in-question" coins I can ever recall hearing about. It's reported that Mark Hofmann, a Salt Lake City rare documents collector and dealer, was going to be called out as a fraud by people in the Mormon Church who suspected he was trying to sell - and had already sold - multiple historic Mormon Church documents (in addition to other documents) that were fake. He then attempted to delay and deflect suspicion by making and sending pipe bombs to those pressuring him to see documents he claimed to have. Not having enough time to forge them, he upped his resume from a forger to a murderer of two people in 1985. Police suspected his involvement when he became injured by one of his own bombs (which he was attempting to deliver to a third person), but his statements didn't add up to the evidence; he was ultimately convicted on multiple counts including murder and is still in prison.
However, from his prison cell Hofmann claimed responsibility for the forging of this 1959-D Lincoln cent "mule" after news of its discovery was made public. The reverse erroneously has the "Wheat" rather than the "Lincoln Memorial" design which was switched in 1959, thus the mismatched dies make it a "mule" error. Hofmann claims the police seized it from his house after his arrest and stole it, only to be found years later in the hands of a collector. If anyone had the IQ and means of making forgeries, it was Hofmann - the best known forger in American history - whose documents even fooled nationally-known and well- respected document examiners and museum curators.
The Secret Service has stated after two separate investigations that this 1959-D Lincoln cent "mule" is genuine. However, authenticators at professional coin- grading companies and other well-respected Mint error experts disagree. The fact that there is still such a strong difference of opinion to this day between numismatic experts and investigators at the U.S. Treasury Department is truly fascinating. Who is actually correct? Is it genuine or not? Well, one thing that is 100% certain is that it sold for $50,000 at a Goldberg auction in 2019. What will this disputed 1959-D Hofmann "Wheat" Reverse "Mule" go for next time?
A Reproduction of the Hofmann "Mule"
Again, another clue that an infamous inauthentic coin might be worth money is if a fake coin itself is faked.
Coins like Piacentile/Sheiner cents, Racketeer nickels, Henning nickels, and even the Hofmann "mule" above are often replicated. That includes this mass-produced and completely worthless reproduction of the 1959-D Hofmann "Mule" on the immediate right. I purchased this one for $1 to use as a visual aid for seminars on counterfeits.
Lastly, no other situation in modern American numismatic history has created a greater sense of panic among collectors, dealers, and professional grading companies than when a large group of inauthentic error coins - including this one below - hit the market in the mid-2010s. Literally hundreds of coins were being offered for sale on sites like eBay®, and directly to dealers/collectors, featuring absolutely fantastic and unbelievable errors, some of which have never been seen before. Errors like "Ike" dollars struck on cent planchets with massive curved clips, and Washington "50 State Quarters Series" struck on cent planchets (some genuine 50 State quarters on cent planchets do exist), wowed and amazed coin nerds everywhere. Sale prices reached multiple thousands. Major grading companies boosted the confidence of wary buyers by certifying some of them, which in turn caused sale prices to climb even higher. The craze was peaking for coins being offered by someone named "Charles Silverstone" (a.k.a. "Mike McCoy"), who was selling these "Silverstone" errors at shows and on eBay® under the seller name of "National1966." Then, suddenly, the frenzy crashed when it was learned weeks later many of these were just masterfully-made coins forged to resemble genuine errors. What tipped off the experts?
Mint error dealer and numismatist, Jon Sullivan (Sullivan Numismatics), informed me he discovered what was going on "by having a group of the coins in one place to compare them." He noticed very quickly a few weren't genuine, which only aroused suspicion that the others weren't either. Through Jon's research and close examination in conjunction with a group of other dealers, he began to notice that "some of the same dies were being used on different errors of wildly different dates." Many of them also featured mintages from different Mints. Basically, this means that the same exact dies would've had to have been passed around back and forth from Philadelphia, Denver, and San Francisco over a period spanning multiple years.
Sullivan said the chance of this happening is "totally impossible in any remotely reasonable scenario."
What made them much more difficult to detect was that the error coins consisted of "authentic Mint planchets, genuine error coins, or normal coins, and then [he] created errors over top of them" with fake dies. Because the quality of these fakes is so convincing, Sullivan suspects Silverstone (or someone else) likely created them "at some minting institution which would have had excellent equipment." Many experts suspect their production was in Eastern Europe, possibly Bulgaria where Silverstone once listed his location on eBay®. (I suspect this was part of a larger criminal racket and he didn't work alone.)
Grading companies like PCGS®, NGC®, and ANACS® took immediate and appropriate action to inform the public and remedy the situation. Everyone who submitted these coins for certification was refunded what they paid for them if they returned them and provided appropriate paperwork. eBay® and PayPal® also reimbursed people who bought from Silverstone. Even Silverstone himself refunded some people electronically, but many never got refunded.
Who "Charles Silverstone" really is, what he's doing now, and where he is currently, are all unknown. (He listed both a St. Petersburg and a Clearwater, Florida address while he was selling). As of this writing, he hasn't been held accountable. A few of his errors (slabbed and raw) still pop up at times for sale online, but many people like myself actively try to get these removed. Hopefully after reading this, you'll also have your guard up. Is it possible some day these "Silverstone" errors will be just as collectible as the other featured coins? Yes, it is. In fact, I know people personally who've paid over $100 for some of his known fakes, and for the few still remaining in TPG holders, some sale prices have reached upwards of $300. However, only time will tell.
2000-P Virginia State Quarter Struck on a 1 Cent Planchet ("Silverstone" Error)
In conclusion, I stand by my claim that it's worth your time to study and even collect a few known counterfeit and altered coins. Minting errors should be included because they are no longer seen as a fringe niche in the hobby, and as their popularity and sale prices continue to rise, so too does the number of fake and altered coins entering the marketplace. Knowing how genuine coins have been minted over time, how forgers have created their phonies through the years, and learning which fakes fooled the experts and why, will all help you sharpen your skills.
As if things aren't bad enough, the counterfeiting and altering isn't just limited to the coins. Grading company slabs, labels, holograms, and paperwork are also being faked. So are CAC® stickers, U.S. Mint packaging, inserts, Mint bags, and GSA holders. (I'd advise you to collect some of these as well.)
However, I am also a History teacher by trade in addition to being a numismatist. I acknowledge that sometimes even the ugly chapters of history are interesting, and an intriguing story will always find an audience. Good or bad, some people like to feel a bit more connected to history by "owning" a piece of history - an assassin's gun, a dictator's hat, and, yes, even a famous fake. So, even though I acknowledge that 99.9% of fake and altered coins are garbage, a fraction of those which made history are actually worth some "real" money.
Above-average Inauthentic Errors
All three of these coins below are good enough to fool even experienced collectors. Without knowing how to tell that each was struck with a set of fake dies, someone may have lost a significant amount of money. For example, a genuine 1943 cent-on-dime double denomination once sold for just under $34,000.
Each of these three coins was at one time an unadulterated, genuine U.S. Mint product. For the 1970-D nickel, the die strike is fake, but the planchet is genuine, or at least it matches the weight and composition of a normal copper Lincoln cent. The 1943 Mercury dime understrike and planchet are genuine, but the 1943 Lincoln cent overstrike is fake. Similarly, the original understrike on the 2001-P Washington quarter and the planchet are genuine, but the other two off- center overstrikes are from fake dies.
Some of the signs of a fake die strike can include weak or fuzzy details, an unnaturally brilliant luster, die markers, etc. Learning the minting process and how it's changed over time, how genuine errors occur and what they should look like, what methods counterfeiters use, studying some famous fakes, and collecting and studying some of your own fakes and altered coins will help make you and the hobby better overall. (Your wallet will also thank you.)
1970-D 5¢ on a 1¢ Copper Planchet
1943 1¢ on a 1943 10¢ Double Denomination
Triple-struck 2001-P 25¢ w/ Off-center 2nd and 3rd Strikes
Joe Cronin is the author of two books: Mint Errors to Die For and The Henning Nickels Collectors' Guide. Contact Joe for copies at jcro57@yahoo.com