What Is Coin Clipping?

Coin debasement is the act of decreasing the amount of precious metal in a coin, while continuing to circulate it at face value.

Why are coins clipped?

Clipping was taking a small amount of metal off the edge of hand-struck coins. Over time, the precious metal clippings could be saved up and melted into bullion (a lump of precious metal) to be sold or used to make new coins. ... This meant that they weren't worth as much even though they still looked like the right coin.

Why do people cut pennies?

When our currency was undermined by criminals.

So cutting or filing a small amount off the coin would probably go unnoticed. The cut-off pieces would then be melted into a bar and sold to a goldsmith, or used to make counterfeit coins.