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<p>[QUOTE=&quot;NorthKorea, post: 1258542, member: 29643&quot;]I think the &quot;good rim&quot; as you&#039;re referring to would be created by the collar around the planchet. In looking at the picture, I originally thought that part of the die broke off. That would make it a cud. This is reinforced by the fact that the &quot;lump&quot; in the middle of the wheat stalk looks like a piece of pie. I mean, relative to the rim, it&#039;s triangular rather than parallel. (I know I&#039;m explaining that wrong, but think of it like a pie that&#039;s been cut, but someone took the crust from one of the pieces.) When the piece broke off, there would be a new &quot;edge&quot; to the die break. When the metal fills the void, the initial edge would take on the characteristics associated with the break, however, with pressure from both top and bottom, there would be the introduction of resistance (I&#039;m guessing from air or possibly grease) to the flow of metal by the pressing plates.</p><p><br /></p><p>I have zero knowledge of how coins are made (in the sense that I&#039;ve never been to a US Mint), but I&#039;m guessing the planchet gets squeezed between two dies and two anvils. The bottom anvil would create a point of resistance, assuming the die broke and fell off. However, if it chipped off, there would be a possibility that some metal would still be stuck to the die. That could create the rim/lump/rim impression that is on your coin. Again, this hypothesis is based upon never seeing a coin press.</p><p><br /></p><p>Edit from here on... didn&#039;t want to start a new post and bump the thread:</p><p><br /></p><p><span style="color: #222222">Regardless of the penny/dime value on the market, I still don&#039;t understand why the poster won&#039;t submit the card to PCGS or NGC or even ANACS, for that matter, to get graded/slabbed. Accugrade has a horrible track record, not just for over-grading coins, but worse yet for authenticating fake or altered coins.</span></p><p><span style="color: #222222"><br /></span></p><p><span style="color: #222222">If the error is as valuable as the poster believes, it would behoove him to submit the coin for authentication by a respected grading service. That would be his only chance at getting reasonable market value for the item.</span></p><p><span style="color: #222222"><br /></span></p><p><span style="color: #222222">All of that said, I started thinking about the value of the coin:</span></p><p><span style="color: #222222"><br /></span></p><p><span style="color: #222222">If the coin owner declined a satchel of money in 1995 and opted for the coin, the impression the owner wanted to establish was that the coin was worth a substantial amount of money. That said, was the transfer of ownership of the coin recorded with the IRS? I&#039;m sure they would be very interested to find out that someone gave away a $640k coin (estimated based upon what I know fits in my briefcase/satchel in $1 bills - 64 100-bill straps). If the coin was claimed, what was the value that the coin was taxed upon? I&#039;m fairly certain that based upon the cash being declined, tax law would mandate that the coin be valued at the amount of cash declined -- at least for the purposes of what the IRS would tax.</span></p><p><span style="color: #222222"><br /></span></p><p><span style="color: #222222">If the taxes weren&#039;t paid, that would be 15 years of tax penalties. I&#039;m guessing the coin owner didn&#039;t pay the $352,800 tax bill (52% on it being valued as a gift at $640,000) to the US and their state, so the penalties would push that number close to $500,000. That would establish the basis for capital gains on the coin at whatever amount was claimed in 1995.</span></p><p><span style="color: #222222"><br /></span></p><p><span style="color: #222222">Now, that said, I suppose the owner could have claimed $1500 as the value of the coin for tax purposes in 1995. That&#039;s fine. However, for the purposes of insurance, in absence of recent sales records, tax records are used for the valuation of insurance claims. That would mean the coin is worth $1500 for insurance purposes without recent sales records or an appraisal. The offer of $10,000 could be used to establish an appraisal, but it would be necessary to prove that the offer was contractually reasonable: The buyer had the money to complete the transaction and would have entered into the purchase without any coercion by the seller or other party.</span></p><p><span style="color: #222222"><br /></span></p><p><span style="color: #222222">So, for tax purposes, the coin is worth $640k, but for insurance purposes, it&#039;s worth $1500. Now, that said, the owner is trying to sell the coin for multiples of a million dollars. In declining legitimate offers in excess of a million dollars, the IRS would claim (and rightfully so) that the owner was aware of the value of the coin at the time of the original transfer. Without evidence of transfer (meaning tax records), the IRS would assume the transfer occurred as of the date of the offer of sale by the current owner. Once provenance were tied to the father of the child that died in 1988, the IRS would pursue taxes on this new amount from the estate of the father and from the current owner of the coin.</span></p><p><span style="color: #222222"><br /></span></p><p><span style="color: #222222">I don&#039;t know about everyone else, but if I owed gift tax or transfer tax on an item with a value in excess of $1mm, I would not be declining offers on the coin and boasting about its value. I would instead submit the coin to a Christy&#039;s for auction. At least that way, the IRS would only come after me for the final sale value (less auction &amp; marketing fees).</span>[/QUOTE]</p><p><br /></p>

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