A purported counterfeit example of a 1797 Draped Bust dime of the JR-2  variety identified in the numismatic community is believed to have been made by a transfer die process.

A discussion of the piece was posted July 24 on the U.S. Coins Forum on the Professional Coin Grading Service website.

Numismatist Bill Nyberg wrote up his examination of the discovery in the Aug. 2 email issue of the John Reich Collectors Society’s JR Newsletter.

The PCGS website describes the transfer die process as “an advanced counterfeiting technique where illicit coin dies are created by copying a genuine host coin. Counterfeiters use spark erosion, hubbing, or electroplating on a real coin to engrave working dies, which then strike fake coins with exact dimensions and accurate details.”

The 1797 dime’s JR-2 variety is cataloged in Early United States Dimes 1796-1837 (by D avid J. Davis, Russell J. Logan, Allen F. Lovejoy, John W. McCloskey and William L. Subjack). Its obverse bears 13 six-pointed stars, seven to the left of Liberty’s portrait and six stars right.

The 1797 Draped Bust dime has an overall recorded mintage of 25,261 coins.

In the July 24 JR Newsletter, Nyberg wrote of the counterfeit:

“The piece had hairlines from cleaning, but most considered it to be a genuine coin with problems. I responded and posted images ‘Interesting. Check the diameter. Count the edge reeds. At first glance it looks genuine, then I compared [it] with my PCGS VG-10 [example] of the 1797 JR-2. Compare the 2 small diagonal scratches on the neck on each coin, along with a longer diagonal scratch starting at the bottom of the two scratches to hair.

“The reverse has post-Mint marks that are similar to OP coin, small dig with cratering between S and T, dig on leaf below R, scratch just off end of D to leaf, others.”

“Further diagnostic analysis and additional [examples]identified by Heritage Auctions catalogers confirmed those examples as being transfer die counterfeits of 1797 JR-2, which is the very scarce 13 Stars major variety.

“At least ten counterfeits have been identified, with eight encapsulated by third party grading, both graded and details/genuine with the highest grade VG-10, and two raw pieces.

“One was auctioned in 2007, and the subject item was purchased ‘about 20 years ago at a coin show.’ It is important to note that the genuine host coin has not been identified, and it could be one of the examples.

“Additional research is being done, and more detailed information will be published on these deceptive counterfeits.

“Transfer die counterfeits are difficult to detect because the host coin design can be transferred exactly to counterfeit dies and then struck as opposed to being cast.

Very few Draped Bust dime counterfeits were previously known. From the 1984 reference book Early United States Dimes 1796 – 1837, ‘The 1800 Variety 2 dime has the dubious distinction of being the only variety of heraldic eagle dime seen by the authors that has been counterfeited.’ ”

Nyberg posed the possibility to Coin World that even his PCGS VG-10 1797 dime may not be genuine.

“My VG-10 example could be counterfeit, although it is the highest graded example and it might be the host coin, I will be sending to PCGS for authentication when a plan is put together. Jack Young [a noted counterfeit expert] is investigating the counterfeits and is planning an in-depth article; the current list is now 13 counterfeits.

“This is a very disturbing issue, and I hope the counterfeiters can be identified.”