What is Coin Clipping & How Does it Work?

For much of British history, circulating coins were made from gold or silver. During this period, people would practice what’s known as ‘coin clipping’: shaving off small amounts of precious metal from the edges of coins, melting them down, and selling for a profit.

This was, of course, illegal, but the practice was difficult to detect. Eventually, the ease of coin clipping made it so widespread it devalued the nation’s currency and led to an overhaul of the entire coin system.

In this blog, we explain what coin clipping is, how it worked, the penalties involved, and how the Great Recoinage of 1696 put an end to this practice and introduced our modern coin system.

What is coin clipping?

Coin clipping was a form of currency fraud that involved shaving or cutting down the edges of gold or silver coins. Clippers used knives, files, or specially designed shears to shave off tiny amounts of metal from coins. Over time, these fragments could accumulate into significant quantities of gold or silver, which was melted down and sold for a profit. Meanwhile, the clipped coins would be returned to circulation.

Coin clipping was a common crime in periods when precious metals were used in everyday coinage. These coins were struck to a standardised weight and purity, with their value directly tied to the amount of gold or silver they contained. Because coins naturally wore down through everyday use, small reductions at the edges often went unnoticed, making clipping relatively easy to conceal.

By taking advantage of this natural erosion, clippers could remove small bits of metal without raising suspicion. This practice directly reduced a coin’s intrinsic value while keeping its face value the same. Eventually, the practice became more widespread and led to the gradual devaluation of currency.

To help you understand just how popular this practice was, an English royal survey from the year 1247 estimated that the majority of circulating coins at the time had lost about a third of their original weight.

Keep Reading: Gold Purity, Fineness, And Karat – What Is It And How To Check It

Was coin clipping a crime?

Yes, coin clipping was considered a serious crime because it directly undermined the monetary system. When a currency’s value depends on precious metal content, it’s essential that every coin has the same weight and purity. Clipping reduced a coin’s weight, therefore eroding its value and leading to loss of trust in the currency. Nobody knew if their coins were actually worth their face value, making it difficult for authorities to maintain economic stability.

Coin clipping was also viewed as an attack on state power. The right to mint currency was closely tied to sovereign authority, and tampering with coinage interfered with the government’s ability to regulate money and commerce. For this reason, coin clipping was often legally treated in the same way as counterfeiting.

Learn More: What Drives the Price of Gold?

What was the penalty for coin clipping?

In medieval Europe, the penalties for coin clipping often included heavy fines and imprisonment. Some coin clippers even faced corporal punishment, such as the loss of a hand or an eye, or being banished from their communities. These penalties reflected the belief that coin clipping was not just a financial offence, but an attack against state authority.

By the 17th and 18th centuries, coin clipping had become a capital offence in Britain. Under the reign of William III, those found guilty were sentenced to death, usually by hanging. The severity of this punishment was intended to discourage others from engaging in the practice and protect the currency’s integrity, however coin clipping continued to be an issue, mostly because there was no real way to stop it from occurring.

What sort of people were clippers?

It wasn’t just criminals who engaged in coin clipping. Everyday people, like shopkeepers, market traders, or tavern keepers all participated in the practice. Since they handled large volumes of money through daily transactions, these people had the opportunity to divert coins for clipping without immediately drawing attention.

Women were also involved in coin clipping, often working from private homes where it was less likely for them to be discovered. In some cases, clipping was practiced by organised networks, with different groups of people responsible for supplying the coins, clipping them, and selling the accumulated metal.

How does coin clipping work?

Coin clipping was a relatively simple process, but it required careful precision. The aim was to remove enough metal without making the coin look as though it had been visibly tampered with.

Here’s how the coin clipping process was typically carried out:

1. Selecting the coin

First, the clipper had to choose a coin made from a precious metal like gold or silver. It was important that the coin didn’t already look underweight or damaged – if a coin had already been clipped, then further clipping might make it look more suspicious.

Coin clippers required a steady supply to coins, so they often relied on businesses like shops or taverns to contribute.

2. Securing the coin

To provide stability and allow for careful trimming, the clipper would hold the coin firmly in place using a vice, clamp, or similar tool. Clipping was a discreet activity, usually done in private settings (like a cellar or attic) to avoid detection.

3. Trimming the edges

Using a sharp instrument, like a knife, file, or specially designed clipping shears, the clipper would carefully shave small amounts of metal from the edges of the coin. These cuts had to be made as evenly as possible to avoid changing the coin’s shape or making it appear obviously smaller.

4. Smoothing the edges

After trimming, clippers would smooth the coin’s edges to make them look as though they’d been naturally worn down from everyday use, rather than deliberately altered. This step was essential in helping clipped coins pass through undetected.

5. Collecting the clippings

The small pieces of metal that were shaved off would be collected and stored in a safe place. Over time, these clippings would add up to a significant quantity of gold and silver and could be melted down and sold, either as bullion or new coins.

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Tools used by coin clippers

Coin clippers used a range of different tools to keep the process as efficient and undetectable as possible. These items included:

• Knives or metal files: Used to shave off small amounts of precious metal. These were the most popular as they were widely available and easy to use.
• Clipping shears: These specially designed tools could remove thin strips of metal from coin edges quickly and evenly, making the process faster and less detectable.
• Vice or clamps: Used to hold the coins steady during the trimming process.
• Bags: Bags were sometimes used for ‘sweating’ coins. This practice involved shaking coins together in a bag, then collecting the fine metal dust that would be rubbed off.
• Crucibles: These small pots were used to melt down the collected metal fragments in a fire.

See: How Much Gold is Kept in the Bank of England?

What was the Great Recoinage of 1696?

The Great Recoinage of 1696 was a major monetary reform in Britain, introduced largely in response to the widespread problem of coin clipping. By the late 17th century, years of clipping and counterfeiting coins had severely undermined the currency. Many coins in circulation were significantly underweight or counterfeit, and people didn’t know what the coins they held were actually worth anymore.

In response, the government, under the reign of King William III, launched an ambitious plan to restore confidence in the currency. One of the key figures in this effort was Sir Isaac Newtown, who was appointed Warden of the Royal Mint in 1696 (later becoming Master of the Mint).

The purpose of the Great Recoinage was to remove damaged and unreliable coins from circulation and replace them with new, more secure coinage. There were several steps required to do this:

Recall of old coins

The government recalled all existing silver coins, many of which had been heavily clipped or worn down. People were instructed to bring their coins to the mint, where they would be melted down and reissued as new coins.

To help encourage participation, people were refunded the amount at face value, no matter how much the original coin had been clipped. Of course, this led to many people taking advantage and clipping coins as much as possible before handing them in, further increasing losses to the state.

Introduction of milled edges

One of the biggest changes introduced by the Great Recoinage was the introduction of milled, or reeded, edges. These coins feature a series of evenly spaced grooves around the entire edge of the coin, making tampering easier to detect. If anyone attempted to clip or shave off edges of the coin, it would be immediately obvious as it would smoothen the rimmed edges.

Standardisation of weight & purity

New coins were minted to strict standards of weight and fineness so that each coin contained a consistent and verifiable amount of precious metal. This helped restore trust in the currency.

Increased minting capacity

To manage the scale of the recoinage, the Royal Mint expanded its operations. Additional facilities were opened, more workers were employed, and mechanised minting techniques were adopted to speed up production. These changes allowed the recoinage process to be completed as quickly and efficiently as possible, though it still caused short-term disruptions to the economy.

Learn More: How To Spot Fake Gold Coins and Avoid Fraud

Is coin clipping still a problem?

Coin clipping in Britain gradually died out after the Great Recoinage of 1696. This reform had two advantages: it recalled damaged coins, addressing the issue of underweight coinage, and it introduced new milled edges, helping prevent tampering from becoming an issue in the future.

In today’s circulating currency, coin clipping is no longer an issue because the value of our coins doesn’t depend on the value of their metal content. Most modern coins are made from relatively inexpensive metals like copper and nickel, which have little intrinsic value compared to gold or silver. Because of that, there’s no longer a financial incentive to clip them.

Other methods of coin debasement

Coin clipping was one of the most common forms of currency tampering, but there were also other ways to extract value from precious metal coins. These included:

Sweating

Sweating involved placing gold or silver coins in a bag and shaking them together. Over time, this would naturally wear off small amounts of metal from the coins which would settle at the bottom of the bag. This dust could then be collected and melted down.

The process of sweating tended to wear a coin down in a more natural way compared to clipping, making it harder to detect.

Plugging

Plugging was a more invasive method of debasement, often used for large coins. One method was to punch a hole out of the centre of a coin, then hammer it flat to close up the hole. Another way was to cut a coin in half and remove a plug of metal from the interior. The space would be filled up with a cheaper metal, then the coin would be welded back together again.