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This variety is 1  of 5 documented hand-made die counterfeit gold dollar varieties dated 1856.   This example shows an advanced state of wear likely indicative as use as a pocket-piece by the owner realizing it was not genuine.  Only a small amount of the gold plating remains around the obverse portrait and on the reverse wreath.  The die sinker did get the obverse and reverse dies correct in their design elements, and overall die quality was quite good!

1856 counterfeit Gold Dollar, Variety 'C-3'

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