YES !!! IT IS LEGAL TO CUT-OUT COINS !!!
Back when Defacing Laws were introduced…The World was on the Gold Standard.
This meant that the World Currencies had values based on Precious Metal Weight.
Hence, a $20.00 Gold Piece had $20.’s worth of gold in it and a value of $20.
Now some people trying to stretch their dollars…
Shaved gold off the edges and proceeded to spend $17. or $18. as $20.
In Order to prevent this the Governments basically did 2 things:
1.)They decided to give every coin made using a precious metal, a “Reeded Edge” that’s why pennies and nickels don’t have the same edge as quarters,etc. as they were never made from precious metals.
2.)They enacted Defacing Laws Such as:
U.S.code Title 18, Chapter 17, Section 331
Which Prohibits among other things, the fraudulent alteration and mutilation of coins. This statute Does Not, however, Prohibit the mutilation of coins
IF DONE WITHOUT FRAUDULENT INTENT,
or if the coins are not used fraudulently.
In Layman’s Terms the Law States:
That if you alter a coin YOU CANNOT SPEND IT!!!!!!!
IT IS NO LONGER LEGAL TENDER !!!!!!!!
So, If you purchase a cutout Half Dollar from me for $65.00.
IT IS ILLEGAL !!! TO SPEND IT AS A Half Dollar!!!!!!!
NOT TO MENTION PRETTY DUMB!!!!
The Cut-Out Coin has an Intrinsic or Jewelry Value
and is a Great Collectable TOO!!!!!!!!