On the net, there are endless streams of information about numerous variations associated with the imperfect application of mintmarks, yet nothing about how the punch itself was manufactured. I have thought about it and concluded there were at least a few possibilities (if not more): the letters were sculpted in relief; the letters were sculpted at a larger scale and subsequently reduced by a reduction lathe; the letters were engraved (incuse) into steel and then (using something like the hubbing process) another piece of steel was pressed into and later trimmed down; and finally they were made like a piece of jewelry: carved out of a soft material (like wax), cast, polished and annealed.
I might be way off on my guesses and missing something obvious, but from the generated list, my sense is that a reduction lathe would have been too complex and costly. (As an artist myself) carving the letters in relief would seem possible, however due to the small size probably unlikely. Engraving the letters incuse, either in metal or another material, makes the most sense as I imagine that the mint had engravers on hand anyway.
I also don't know is how long these punches lasted and once it went kaput if they were able to replicate that punch (from a source cast or whatever) or if that was it, that style punch was forever gone.
I have a reason for asking but I’ll leave that for another time…
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