Challenge coin A challenge coin is a small coin or medallion ( usually military ) , bearing an organization ’ s insignia or emblem and carried by the organization ’ s members . Traditionally , they are given to prove membership when challenged and to enhance morale . In addition , they are also collected by service members . In practice , challenge coins are normally presented by unit commanders in recognition of special achievement by a member of the unit . They are also exchanged in recognition of visits to an organization . Origins . There are several stories detailing the origins of the challenge coin . According to the most common story , challenge coins originated during World War I . American volunteers from all parts of the country filled the newly formed flying squadrons . Some were wealthy scions attending colleges such as Yale and Harvard who quit in mid - term to join the war . In one squadron , a wealthy lieutenant ordered medallions struck in solid bronze and presented them to his unit . One young pilot placed the medallion in a small leather pouch that he wore about his neck . Shortly after acquiring the medallion , the pilots ' aircraft was severely damaged by ground fire . He was forced to land behind enemy lines and was immediately captured by a German patrol . In order to discourage his escape , the Germans took all of his personal identification except for the small leather pouch around his neck . In the meantime , he was taken to a small French town near the front . Taking advantage of a bombardment that night , he escaped . However , he was without personal identification . He succeeded in avoiding German patrols by donning civilian attire and reached the front lines . With great difficulty , he crossed no - man ' s land . Eventually , he stumbled onto a French outpost . Unfortunately , saboteurs had plagued the French in the sector . They sometimes masqueraded as civilians and wore civilian clothes . Not recognizing the young pilot ' s American accent , the French thought him to be a saboteur and made ready to execute him . He had no identification to prove his allegiance , but he did have his leather pouch containing the medallion . He showed the medallion to his would - be executioners and one of his French captors recognized the squadron insignia on the medallion . They delayed his execution long enough for him to confirm his identity . Instead of shooting him they gave him a bottle of wine . Back at his squadron , it became tradition to ensure that all members carried their medallion or coin at all times . This was accomplished through challenge in the following manner - a challenger would ask to see the medallion . If the challenged could not produce a medallion , they were required to buy a drink of choice for the member who challenged them . If the challenged member produced a medallion , then the challenging member was required to pay for the drink . This tradition continued on throughout the war and for many years after the war while surviving members of the squadron were still alive . According to another story , challenge coins date back to the second world war and were first used by Office of Strategic Service personnel who were deployed in Nazi held France . The coins were simply a local coin used as a " Bona Fides " during a personal meeting to help verify a person ' s identity . There would be specific aspects such as type of coin , date of the coin , etc . that were examined by each party . This helped prevent infiltration into the meeting by a spy who would have to have advance knowledge of the meeting time and place as well as what coin was to be presented , amongst other signals , as bona fides . While a number of legends place the advent of challenge coins in the post - Korean Conflict era ( some as late as the Viet Nam War ) , or even later , Colonel William " Buffalo Bill " Quinn had coins made for those who served in his 17th Infantry Regiment during 1950 and 1951 . There is another story about an American soldier scheduled to rendezvous with Philippine guerrillas during WWII . As the story goes , he carried a Philippine solid silver coin that was stamped on one side with the unit insignia . The coin was used to verify , to the guerrillas , that the soldier was their valid contact for the mission against the Japanese . The challenge coin tradition has spread to other military units , in all branches of service , and even to non - military organizations as well as the United States Congress , which produces challenge coins for members of Congress to give to constituents . Today , challenge coins are given to members upon joining an organization , as an award to improve morale , and sold to commemorate special occasions or as fundraisers . In the Air Force , military training instructors award an Airman ' s coin to new enlisted personnel upon completion of their United States Air Force Basic Military Training and to new officers upon completion of their Air Force Officer Training School . In 2008 , " Leatherneck Magazine " gave a 90th anniversary " Leatherneck " challenge coin to a select few readers who sent in letters to their Sound Off section which the editors particularly liked . U . S . presidents . President Bill Clinton displayed several racks of challenge coins , which had been given to him by U . S . servicemembers , on the credenza behind his Oval Office desk . These coins are currently on display at the Clinton Library . The challenge coins appear in the background of his , now hanging in the White House . President George W . Bush received a challenge coin from a Marine combat patrol unit during his short but unexpected visit to Al - Asad Airbase in Anbar province , Iraq , September 3 , 2007 . President Barack Obama placed challenge coins on the memorials of the soldiers killed in the Fort Hood shooting . Challenging . The tradition of a challenge is the most common way to ensure that members are carrying their unit ' s coin . The rules of a challenge are not always formalized for a unit , and may vary between organizations . The challenge only applies to those members that have been given a coin formally by their unit . This may lead to some controversy when challenges are initiated between members of different organizations and is not recommended . The tradition of the coin challenge is meant to be a source of morale in a unit , and forcing the challenge can cause a reverse effect . The challenge , which can be made at any time , begins with the challenger drawing his / her coin , and slapping or placing the coin on the table or bar . In noisy environments , continuously rapping the challenge coin on a surface may initiate the challenge . ( Accidentally dropping a challenge coin is considered to be a deliberate challenge to all present . ) Everyone being challenged must immediately produce the coin for their organization and anyone failing to do so must buy a round of drinks for the challenger and everyone else who has their challenge coin . However , should everyone challenged be able to produce their coin , the challenger must buy a round of drinks for the group . While most holders of challenge coins usually carry them in their pockets or in some other readily accessible place on their persons , most versions of the rules permit a challenged person " a step and a reach " Variants of the rules include the following . If someone is able to steal a challenge coin , everyone in the group must buy a drink for that person . During a challenge , everyone in the group must buy a drink for the holder of the highest - ranking coin . A coin presented to a low rank , by a high rank , ( i . e . : Admiral ) trumps all low rank coins in a challenge . Traditionally the presentation of a coin is , the coin is passed during a handshake . Some units provide strict time limits to respond to a challenge . Traditionally , rules of a challenge include a prohibition against defacing the coin , especially if it makes it easier to carry at all times . If the challenge coin is attached to a belt buckle or key ring , or has had a hole drilled in it to attach to a lanyard , it no longer qualifies as a challenge coin . A safer place to carry a coin is in a pouch worn around the neck . There are many finishes available – from a simple pewter to 24K gold . While there are only a few base metals , the patina ( finish ) can range from gold , silver , nickel , brass , copper . bronze plus the antiqued variations . Soft or hard enamel or a printed inset with an epoxy coating may add color ( the epoxies are often more resilient and scratch resistant than the metal surfaces ) . Cost . Challenge coins are moderately inexpensive to design and produce . There are two basic processes by which to manufacture : zinc - alloy castings or die struck bronze . Zinc alloy castings offer the advantage of low cost . While a die struck bronze or brass coin is more expensive , the result renders a far superior product ( numismatic quality ) . , coins manufactured in Asia typically cost between US $ 2 . 50 to US $ 7 . 00 per coin depending on production process and complexity of design , laser engraving , enamels , voids , etc . The dies must be sculpted by an artist and can range in cost from US $ 50 to US $ 300 depending on complexity . The cost of domestic manufacture can be many times this amount . In order to be competitive , most North American companies offering challenge coins rely on having the product manufactured ' off - shore ' . Many challenge coins are fabricated in South Korea , as the connection to the US military bases there is strong , and costs are cheaper than US made coins . Chinese coins are perhaps even more numerous . Uses . Besides using coins for challenging , they are also used as rewards or award s for outstanding service or performance of duty . As such they are used as a tool to build morale . In the context as they are used by the modern U . S . military , the tradition probably began among special forces units during the Vietnam War . The tradition spread through the Airborne community , and by the early 1980s also into the 75th Ranger Regiment . As officers were reassigned as their careers progressed , they carried with them the tradition of awarding a unit coin for acts that were worthy of recognition , but yet lacked enough merit to submit the soldiers act for an official medal . Challenge coins were not very common until the First Persian Gulf War of 1990 – 1991 , and have steadily grown in popularity since . One widely known challenge coin in the United States Air Force was the " Bull Dog " challenge coin that was exclusive to B - 52 enlisted tail gunner s . Since the B - 52 gunner position was phased out in 1991 , this famous challenge coin has become more rare . This coin was presented to gunners upon graduation from their Air Force technical training and their entry into the " Gunners Association " . In the earlier days of bombers , a bean or a nugget was used . The coin represents the attributes of strength and courage as reflected in the Bulldog , the gunner ' s official mascot . The coin was also given to certain " honorary gunners " , usually commanders and leaders who portrayed the spirit of the bulldog . Some collectors buy them for their numismatic value . Coins given as awards for accomplishments are normally given to the recipient during a handshake , passing from the right hand of the giver to the right hand of the awardee . It is also normal for the giver to offer a brief explanation of the reason for awarding the coin . " Perhaps the largest collection of Army Engineer related coins exists in a large cabinet in the Army Engineer Association ' s ( AEA ) Engineer Regimental Store , located in the Engineer Museum at the home of the Engineer Regiment . These coins were donated by store customers who have passed through the store since it opened in the late 1980s . " Challenge coins outside of the military . Challenge coins are also exchanged outside the military . NASCAR , the NFL , Eagle Scouts and World Series of Poker all have their own challenge coins . They are also becoming popular with Police Department s , Fire Department s and Fraternal organizations . In 2007 , the Utah Symphony and Opera gave challenge coins to all of its staff and musicians , making it the first symphony organization in America to do so . Challenge coins are also presented to veteran members of the Glamisdunes . com flag ceremony in November . Another organization in which challenge coins have gained popularity is the " National Association of Buffalo Soldiers and Troopers Motorcycle Club " ( NABSTMC ) which has over 85 chapters totaling over 2 , 000 members . The coin is 1 . 75 inches in diameter , minted in solid brass with an antique finish . The front of the coin bears the NABSTMC Buffalo Soldier Logo . Also depicted is the year the club was established , which was 1999 . The back of the coin proudly displays the " Cavalry Charge " with the motto of the 9th and 10th Cavalry Buffalo Soldiers – " We Can , We Will " and " Ready Forward " . The coin must be earned by the members and can only be presented by a National Officer or Chapter President for a noteworthy accomplishment . In 2009 , the Harley Owners Group ( H . O . G . ) created and made available its own challenge coin to Harley - Davidson motorcycle owners through the H . O . G . Members Only website , stating " Those who ride Harley - Davidson motorcycles share a bond in much the same way as those who have served their country with pride . Carrying a H . O . G . National Challenge Coin in your pocket , on your bike or off , is a meaningful way to show your pride of Harley - Davidson ownership – while also paying tribute to those who serve . " The H . O . G . National Challenge Coin , available for US $ 12 , measures 1 . 75 inches in diameter and is minted in U . S . A . from solid brass alloy with an antique finish . The H . O . G . Eagle logo is stamped on the coin . The Harley - Davidson Bar and Shield logo encircled with the words The Official Riding Club of Harley - Davidson is stamped on the back . In his audio commentary for the DVD release of " Iron Man 2 " , film director Jon Favreau notes that he had " Iron Man 2 " challenge coins made to distribute to United States Air Force personnel as a gesture of thanks for their cooperation while the production ( and its predecessor , " Iron Man " ) filmed on location at Edwards Air Force Base . Bill Prady , Executive Producer of " The Big Bang Theory " recently gave the " Big Bang Theory " Executive Producer ' s Challenge Coin to the crew of the last Space Shuttle . On the " Rockets " episode of " Lock N ' Load with R . Lee Ermey " , R . Lee ( Gunny ) Ermey presents a challenge coin to 2nd Lt . Carr as a reward for being the " Top Gun " in his class with the Javelin Portable Rocket Launching System . Members of the American Radio Relay League who are Volunteer Examiners may carry the VEC ( Volunteer Examiner Coordinator ) Challenge Coin . These members are responsible for administering Federal Communications Commission sanctioned examinations that allow successful applicants to qualify as amateur radio operators in the three different license categories of : Technician , General , and Amateur Extra . Even video game companies like Treyarch gave these coins with certain packages for the release of Black Ops 2 Switzerland . The challenge coin tradition was introduced into the Swiss Armed Forces by American officers on training missions and other assignments for the Organization for Security and Co - operation in Europe , of which Switzerland is a member . Coins are not issued , but rather ordered and paid for by Swiss officers of various branches within the Army .