Why does this penny look like this?

[watson8715]

It's gold in color. The date on it is 1968. It feels slightly heavier than a penny. It looks almost like it's coated in something especially around the edge and the part around the edge seems to be coming off in a spot as seen in the first picture.

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[Kevo_DFX]

My guess is a chemistry experiment. This is a fairly common high school project.

Gold Pennies at Steve Spangler Science

- Kevo

[Mike Moutray]

What you have is a genuine penny that was modified for use as a jewelery item. What you see peeling off at the edge is actually a thin brass bezel that is formed around the coin for mounting in or on something. It is all gold plated to make it pretty. It could have come off a variety of things like a chain pendant, money clip, good luck charm, etc.