by CoinWeek…
In July 2011, Coinworks announced the record-breaking sale of an 1813 Holey Dollar for an astounding $485,000. This particular coin, Australia’s first domestic currency, was purchased by a prominent graphic designer from Melbourne who saw its value not only in its exquisite detail but also in its strong investment potential, especially with its 200th anniversary approaching in 2013.
Belinda Downie, managing director of Coinworks, noted that this specific Holey Dollar is one of the best-preserved examples in existence. “What’s the probability that a coin struck in 1789… would circulate for 24 years beforehand, and virtually not have a mark on it?” she stated, highlighting the coin’s remarkable condition. She also added that the coin is likely in the top 10 of the approximately 200 Holey Dollars that remain in private collections.
The Story of the Holey Dollar
Almost 200 years before the record-breaking sale, Governor Lachlan Macquarie faced a currency crisis in the fledgling penal colony of New South Wales. In 1813, he purchased 40,000 Spanish Silver Dollars and enlisted a convicted forger to punch a hole in the center of each coin.
The outer, donut-shaped piece was re-stamped with a value of five shillings and became the 1813 Holey Dollar. The small circular center piece was also re-stamped with a value of fifteen pence and became the 1813 Dump. This clever measure not only doubled the number of coins in circulation but also made it difficult for them to be taken out of the colony, while providing an immediate 25% profit.
In 1829, the Holey Dollars and Dumps were withdrawn from circulation, and the majority were melted down for their silver content. Only about 300 Holey Dollars and 800 Dumps are known to exist today.
Rarity and Condition of the Record-Breaking Coin
The Holey Dollar sold by Coinworks is a rare Type 3, meaning it was converted from a Spanish Dollar bearing the portrait and legend of the deceased monarch, Charles III of Spain. Only two such coins are known to exist, and this one is by far the finest example.
In fact, it is considered one of the top ten finest Holey Dollars of all 300 known to survive. Its countermarks- the markings stamped around the inner edge when the coin was created- are virtually as clear as the day they were struck, indicating it saw almost no circulation after its creation.
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