
Here is an example of a coin with advanced PVC damage. PVC damage can of occur when a coin is stored in certain soft plastic holders. The things (plasticizers) added to the PVC plastic to make it soft can leach out onto the coin and cause this kind of damage over time.
The PVC on the coin above can be seen as the green areas. The PVC damage is so advanced on this coin that you can see where it has eaten into the coin and left pits in it. In less advanced stages, the PVC residue may be removed with a solvent such as acetone with little damage but, for this coin, it is too late. Even after removal, the damage to the coin would be obvious.
I have heard that one sign of the presence of PVC softeners is a 'new shower curtain' smell to the holder or coin. However, it is much better to ensure that whatever holders you use are archivally safe and free of PVC plasticizers before placing a coin in them than to be unsure and try to guess.
I also always remove any coin that I buy from the dealer's holder and place it in my own which I know are ok.
Finally, here is a closeup of the PVC on the coin:

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