Malaysia RM1.00 1994 Waffle Cancelled Coin.
About Waffled Cancelled Errors:
When coins are released from the mint with an error they achieve a new more valuable status. Historically they have multiplied in value. Error coins that manage to get out of the mint become valuable collector's items; and as coin minting technology has advanced the amount of imperfect coins leaving the mint has been drastically reduced; creating an even bigger demand for those that inadvertently do get out.

Now the mint has begun to employ a new method of cancelling errors and voiding them as currency. That method is called waffle cancelling. In most cases these cancelled coins are subsequently melted and recycled, but not always.
Since the mint began to waffle coins, they have become a new hot collectible in the coin market. The Mint has been using machines to cancel defective coins. The coins are conveyed through crushing rollers. These rollers partly obliterate the coin's design and impart a corrugated or "Waffle" pattern on the coin. Hence, the term Waffle.
The same basic process has been used by Germany, Belgium, The Netherlands, South Africa, Spain and other countries for many years.

Coins destroyed in this way are variously called: Demonetized, Decoined, Mint-Cancelled, or Defaced. The patterns left by the rollers may or may not resemble "waffles".

When the mint finds a problem on a coin and rejects it they run it trough the "waffler" to "cancel" it and render it into a non-legal tender piece of scrap metal.

Those that have appeared on the open market have achieved their own unique market values.
In the past these rejected coins were not waffled and when they were shipped back to the coinage strip manufacturers for recycling they had to be accompanied by armed mint police for security because they were still legal tender and the security would have to remain until such time and the coins were melted down. Now with waffling they are just scrap metal and the security measures are no longer needed. This results in a big savings for the Mint. Now this scrap metal is offered for sale by the mint and it is usually purchased by the strip manufacturerers but it can be purchased by other metal recylers as well.
Once it is purchased and they take possession of the scrap it belongs to them and they can do what ever they want with it. In some cases people have bought some of these waffled coins, they have had the coins slabbed and they offer them for sale.

More to read: http://dniewcollectors.blogspot.com/2011/03/striking-errorswaffle-coins.html


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