My local coin dealer was given this coin a couple weeks ago. He recently gave it to me and said good luck (he does this often) with finding out how exactly this happened. I'm 99% sure its a post-mint error (don't know how this could have happened otherwise) but I'd love to hear any opinions. Thanks.
This is what is called a spooned coin, someone held it on a flat hard surface and tapped it all around the edge with a spoon (or something similar) until the edge all pulled in like that.
I figured it was something like that. We figured somebody had grinded down the edge and put a ring around it. Thanks for your answer though! Its amazing the stuff people will do to coins....
No, it was not spooned, if it were, (which it wasn't), the surfaces of the obverse and reverse would not be effected the way this coin is. This is a typical "dryer coin". It was stuck inside the fin of a commercial dryer at a laundromat and it tumbled with other coins similarly stuck inside the fin. The tumbling action does this to the edge, the rim and the surface of the coin. Besides, no one would really try to spoon a nickel. The metal is too hard. Thanks, Bill