Is this wear and tear

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Yes. You can even see where the reeds of the coin that probably hit it continued to gouge out the metal under LIBERTY.

 

Took a hit. Circulation damage.
Not a mint error of any kind.

 

Look under the RE in LIBERTY. That’s the reeded edge from another coin, like a Quarter. It hit and damaged the R in LIBERTY.

 

Yeah, just a dig, can still be considered
B/U though, many Morgan dollars because of there weight cause scratches
and indentations.

 

Pre-1982 cents where mainly copper and the metal can be moved fairly easily by simple hits. Looks like that happened to this coin. PMD.