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PMD or strange damage?


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Hello, after spending several hours trying to find a coin similar to the one I have here, I'm going to ask what this looks like to you all. I am not a collector of coins, but I did think at first the coin had just been melted on the edges. Until I saw the die imprint still showing on the area I thought had melted. Then i started wondering if it had been heated with a torch or something, wouldn't the silver casting be more distorted nearby the severely  damaged area ? Thank you for your help. 

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