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GARY... while that sounds cool... it scares the crab out of me... I doubt I'd be up for that anytime soon... the right size bit gets me a round hole the size of the coin... as long as they are gram sized coins, they'd look like regular ( maybe slightly larger ) medallions
a bigger sized ( quarter or so ) coin might look nice if it would fit in the grip correctly
but I'd admit a silver dollar sized coin emblem cut out for an inlay would look pretty sweet...
my Montados have plastic grips... I'd bet that would be harder to inlay than a wood grip ???
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You want to use a end mill to cut for round inlays. You get any size you want or have one "sharpened" to any size. Evil bay is a great source for used cutters, very cheap.