If the letters on the head are incuse, I would guess it had another coin pressed (or pounded) into it. It looks like the round part is the rim of a coin that was pressed into it, not the edge of a die and I cannot imagine a clash being in that area of the head (but I may be wrong on that point).
I had 1964 quarter still sealed in the mint wrapper that look much like that.I sold it to Fred Wienburger. it was a dropped letter error. and looked very much like this nickel. nice find Rock!
I don't think it is a dropped letter, not with that ring. A dropped letter is when hardened gook falls out of a filled part of the die and gets in between the die and the planchet during a strike leaving an impression of a letter on the coin. This has to be either PMD (my guess) or a serious clash involving the IR of AMERICA.
Looking at the reverse, I see a double strike , the letters are correct, the obverse shows another coin involved. This is interesting--
Yes, the reverse does appear to be part of a second strike or a seriously MAD or off-center clash... I have no idea...
It's a doubled strike coin because you do see the impression of the rim also.the reverse indicates that too. JC
This coin is described on the CONECA website (www.conecaonline.org). It's impolite to steal images from one site and post them on another site without crediting the source. I own the coin and acquired it from Fred Weinberg. Anyway, it's a double strike. The first strike was normal. The second strike was very weak and features a weakly impressed brockage on the obverse face