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On the points bikes that wire ran from the part of the mount the condensers were mounted on to under one of the bolts that held the mount to the engine. This was to ensure a good ground for the condensers.
Even after they converted to the TCI ignition they didn't delete the ground wire.
You don't mention the year of the bike. If it has points you need the wire. On a TCI bike you can delete the wire.
A lot of us put our bike info in the signature. This way others will see it and know what year and mods you have done. You can find the signature in you profile.
Leo
You can keep it or remove it, up to you. The factory had it run to the motor at the front right side mount like so .....
That ground wire to the coil mount is something different. That one comes out of the wiring harness. You want to keep that one. It doesn't ground the coil, it grounds various things connected to the wiring harness.
Oh yes 5twins is right.
also that wire connects to the coil mount bolt on my bike.
I had forgot about the 4" ground wire which i'm looking at right now, also connects to the same coil mount bolt and engine mount bolt