Cut coin jewelry seems to be rising in popularity. Though rumored to be illegal, it's probably not, because the coins are not being altered with fraudulent intent: U.S.C. Title 18, Part I, Chapter 17, Sec. 331: Mutilation, diminution, and falsification of coins
One common way to do it is by hand with a jeweler's saw. A few options:
You can cut out the negative space, enhancing the main image, like this:
You can also cut any new shape out of coin, essentially ignoring the existing imagery on the coin:
Coins can be cut for an interlocking effect, both for shared jewelry and mini jigsaw puzzles.
I like this concept of cutting out the heads, which can later be used as jewelry or ornamentation.
Pendants and keychains are common, with nicer coins made into money clips on the high end.
This video shows the process, and can safely be speeded up to 2X speed.
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