Help with 1880-S Morgan Error
I was given this coin because it was not up to a young lady's standards for her Morgan collection as it was "contaminated with tar or something". When I put it under my microscope, what she had though was a black tarry substance or other contaminant was actually black and neon blue marking that I would say were related to heat around a large gouge in the metal and the "S" in "Pluribus" stamped right in the middle of it. Not being overly familiar with Error coins I decided to see if I could get some input from those of you with more experience. I have several questions about the coin. First, since the "S" goes to the bottom of the gouge didn't the gouge already have to be there when it was stamped? Why the heat marks at the S. end of the gouge? and finally is this something worth sending to PCGS before I give it back to her? Take a look and tell me what you think!
The whole Obverse:
The gouge and the letter "S":
Notice the "S" drops off at the edges of the gouge?