Purchase Of Damaged Coins

Yes.
And there are many reasons beyond the one mentioned by @pertinax.

Some type coins are beyond the average collector's means unless they have some defect like PMD of some sort. I sold a holed 1807 draped bust dime a while ago, and I suspect that was the reason there was a buyer.

Here is another reason: http://goccf.com/t/390649

Yup.



At about $8, I paid a bargain price for this coin even in this condition, but if it didn't have that hole it would've probably been worth well into the hundreds.


Another reason that hadn't come up yet: signs of historical circulation. A lot of people collect chopmarked coins, especially in the Trade dollar series. Counterstamps are always popular, particularly if they can be identified to a specific person. IIRC some ancient coin collectors prefer coins with test cuts.

There are also a few coin series that were commonly cut in halves, or occasionally even smaller fragments, to make small change for circulation. Some people collect those fragments. I know I wouldn't shy away from one of those if it came well attributed.


This, on the other hand, I'm with @jacrispies on: nope, or at least nope unless there's a really really good reason otherwise.

And more--some people knowingly buy damaged, cull coins in bulk. For example, check ebay for damaged and cull coin lots.