What is Coin Clipping? Is it the Same as Coin Shaving?

Disclosure: Some of the links you’ll encounter are affiliate links. If you click and buy something, I’ll get a commission. If you’re reading a review of some precious metals company, please understand that some of the links are affiliate links that help me pay my bills and write about what I love with no extra cost to you. Thank you!

What is coin clipping?

When and where did this practice start and is it still happening today?

Learn it below in my guide.

Here’s an awesome quiz about coin clipping and shaving based on this post. For your best results take it after you’ve read my guide.

What is Coin Clipping? Is it the Same as Coin Shaving?

Table of Contents

What is Coin Clipping (Meaning and Definition)?

Coin clipping is a coin debasement method where small metal pieces are physically removed from the edges of precious metal coins.

Precious metal coins were common in the past and individuals would use tools like knives or shears to shave off material, aiming to accumulate enough precious metal for profit.

This reduced the actual weight of the coin while maintaining its face value, allowing individuals to exploit the currency system.

Many modern coins feature ridged edges to counteract coin clipping attempts. This ensured coins retain their original value. Modern coins aren’t made with precious metals so that’s a key deterring factor too.

Coin clipping isn’t common today but discussions around currency debasement continue, particularly regarding the creation of additional paper or digital currency that devalues existing holdings.

Who Started Coin Clipping? And Where (Brief History)?

The names of first coin clippers are forever lost to time. But we know civilizations that first used precious metal coins as currency faced this problem.

Greeks and Romans encountered this problem, creating a cycle of devaluation. Coin clipping likely spread as trade flourished and the use of precious metals in coins became common.

Ancient Greeks and Romans were the first to experience coin clipping and shaving.

Coin clipping thrived in Medieval Europe. Standardized coinage allowed for easier identification, prompting individuals to exploit this system. The practice became rampant by the 17th century in Britain, crippling the trust in official currency.

Economic instability from clipped coins sparked efforts for reform, evident in the Great Recoinage of 1696, where worn out and clipped coins were replaced with milled coins designed to prevent clipping.

Why is Coin Clipping Illegal?

Coin clipping is illegal because of its significant negative economic impact. Clipping undermines the inherent value of currency, leading to inflation.

As clipped coins circulate they distort market trust and create trade instability. The reduction of intrinsic value damages both individual transactions and larger economic systems.

Think of coin clipping as essentially fraud and theft. Scammers present debased coins as genuine value, effectively stealing from individuals and governments.

And you know how rare precious metals are. For example, silver used to be a popular metal for coins in circulation.

Nowadays roughly 40 000 metric tons of silver are produced per year. That is a lot compared to a thousand or fifteen hundred years ago when silver mines were rare and the mining technology was primitive to say the least.

How Does Coin Clipping Work?

Coin clipping involves removing small amounts of metal from the edges of coins.

Clippers use tools like shears or knives to slice off pieces, often filing coin edges to maintain a natural look. This method lets clippers extract metal without altering the coin’s visible appearance.

Clippers use tools like shears or knives to slice off pieces, often filing edges to maintain a natural look.

Is Coin Shaving the Same as Coin Clipping?

Yes, coin shaving is the same as coin clipping. The two terms are interchangeable.

Is Coin Reeding Effective Against Coin Clipping?

Yes, coin reeding is an effective countermeasure against coin clipping.

The reeded coin edge design enhances security by making alterations more visible. Because it becomes easier to detect any tampering when a coin’s edge has noticeable ridges.

Governments introduced coin reeding to reduce the incentive for clipping. Reeding promotes trust in currency systems by making it clear when coins have been compromised.

Coin reeding became widespread with the invention of Castaing machine and during times when clipping was a significant threat to nation’s monetary integrity.

Castaing machine was used to add reeded edges to coins to prevent coin shaving

Historical evidence shows the effectiveness of this strategy.

For instance, the Great Recoinage of 1696 in Britain aimed to address rampant clipping. The introduction of milled coins with reeded edges helped restore public confidence and expert observers claimed a decrease in currency debasement as a result.

Are Rimless Coins More or Less Vulnerable to Coin Clipping?

Yes, rimless coins are more vulnerable to coin clipping than regular coins.

Because reeds on a coin’s edge help protect from coin clipping. And clipped coin with a reeded edge is easily discovered.

How Widespread is Coin Clipping Today?

Coin clipping isn’t widespread in modern society. Current coins consist of base metals instead of precious metals, making the practice less appealing.

And advanced security features on a coin help prevent alterations and this further decreases the likelihood of clipping occurring.

Coin Clipping vs Coin Weight Reduction- What’s the Difference?

Coin clipping and coin reduction are different.

Coin clipping is the act of individuals who shave coins for their precious metals content. Whereas coin weight reduction is the process where the amount of precious metal in a coin is systematically reduced, while the coin’s face value remains the same.

Coin clipping is done by greedy individuals, while coin weight reduction is something financial institutions do to improve their countries’ economies.

For example, Rome’s denarius once contained approximately 4.5 grams of silver; by the 3rd century, it fell to around 2% silver content.

Coin Clipping vs Coin Sweating- What’s the Difference?

Coin clipping and coin sweating are different.

Coin clipping is the act of individuals who shave coins for their precious metals content. Coin sweating is a method of coin debasement that involves shaking coins in a container to remove small amounts of precious metals from their edges.

Coin clipping leaves more visible marks on affected coins, whereas coin sweating takes away the value from entire surface of coins making the affected coins visually indistinguishable from unaffected pieces.

Coin Clipping vs Coin Plugging- What’s the Difference?

Coin clipping and coin plugging are different.

Coin clipping is the act of individuals who shave coins for their precious metals content. Coin plugging is a coin debasement method where a hole gets punched into the center of a coin to remove its precious metal content.

Plugged coins have their holes filled to fool inexperienced people, but the damage is still visible and more visible than in (moderately) clipped coins.

Coin Clipping vs Coin Plugging- What's the Difference? — Coin Clipping vs Coin Plugging- What’s the Difference?

Can Gold IRA Coins Be Clipped?

No, gold IRA coins can’t be clipped. It’s because gold IRA bullion is always held in secured gold IRA depositories and never with their owners.

These coins are insured and perfectly safe while stored in a depository and coin clipping there is impossible.

Are you looking to get a gold IRA account or silver IRA account? Check out Augusta Precious Metals next. They’re the best gold IRA investment company in the USA and they can help you with every step of the process.

Get Augusta’s free gold IRA guide here!

What is Coin Clipping and Shaving? Conclusion

Coin clipping is a coin debasement method where small metal pieces are physically removed from the edges of precious metal coins.

In the past when precious metal coins were common individuals would use tools like knives or shears to shave off material, aiming to accumulate enough precious metal for profit.