Non circulating?

I have this coin in what is a visibly circulated condition.
This is not caused by accidental handling by amature coin dealers.
The coin looks like it has actually been used in circulation.

What causes this?
Were coin sets broken up and spent? Was the bank looted of some of these coins?
How did they become circulated?

My guess:

Coin sets broken up and spent? 

There may have been an excess of coins produced for the sets. Why not put them into circulation?

YuK

There may have been an excess of coins produced for the sets. Why not put them into circulation?

Very true, but then, surely someone else would have found a circulated example by now. After 50 years!

I don't have it yet…..

These Franklin Mint matte coins were often sent directly to the countries' central banks rather than being assembled into sets at the FM, especially from 1975 onwards. In some cases, the central banks assembled sets themselves, and in others, the coins were just released into circulation, perhaps to give legitimacy to, or as advertisements for, the proof and special uncirculated sets. Your coin is most likely one that the central bank issued.

This does force us to consider whether these coins should be listed as circulating or not. I personally don't count them because there's no firm documentation of the intentions of the FM or individual central banks, but I can certainly understand if other collectors choose to count them as circulation coins.

TheGame

These Franklin Mint matte coins were often sent directly to the countries' central banks rather than being assembled into sets at the FM, especially from 1975 onwards. In some cases, the central banks assembled sets themselves, and in others, the coins were just released into circulation, perhaps to give legitimacy to, or as advertisements for, the proof and special uncirculated sets. Your coin is most likely one that the central bank issued.

 

This does force us to consider whether these coins should be listed as circulating or not. I personally don't count them because there's no firm documentation of the intentions of the FM or individual central banks, but I can certainly understand if other collectors choose to count them as circulation coins.

Interesting information.

I think this should still be classed as a “non-circulating” issue as none of the coins were intended for ordinary circulation.

I have had something similar in the UK, I have had large-size proof 50p's arrive in the till at my former workplace! Clearly never intended for circulation, but I have one that is substantially circulated!

Hello. I have seen this numerous times.  Usually someone collects a set and later it is broken up by relatives, friends or just a flea market.   The sets are often put into circulation.  I found numerous interesting coins over the years. 

It is the lack of knowledge of the value if kept UNC.   Some coins values are not high at all, so using for money makes sense if you don't collect.

Best of Luck.