Inlay is one technique used to customize knife handles and other items. To inlay an item, you carve the depth and size of the item you intend to inlay from the material where it will rest. Inlay can be used to create mosaic effects or to secure a single coin or stone. It is important to protect the surface that is not being inlaid, and to use the right adhesives to assure that the inlaid item will not fall out during casual use.
Bind your knife blade with leather, cardboard, cloth or layers of tape to ensure that the edge and point cannot cut you while you work.
Place the coin on the knife handle. Outline the coin with black permanent marker as close to the coin's edge as possible.
Insert a coarse, square burring bit into your hand-held, high-speed rotary tool. Create a depth stop by wrapping the back of your burring bit with electrical tape, so that the bit's teeth will not be able to cut more than the coin's thickness into the knife handle.
Stay inside the coin outline as you carve the handle to the coin's thickness. Work slowly, removing only a little material at a time. Stop frequently to check your progress. Each time you stop, place the coin in the hole. When it sits flush with the surface of the handle, stop carving.
Once the coin is seated correctly in the hole, mix a small amount of one-hour epoxy. Place a drop into the hole and insert the coin. Press firmly to ensure a good seal. Wipe away excess with a clean rag. Allow the epoxy to cure for 24 hours before using or cleaning your knife.