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Holed, well-circulated, and no traces of the original gold plating remain.  My hypothesis of this piece is that it was identified as a counterfeit early on, removed from circulation, holed, and then used on a necklace or similar item which was then gradually worn-down and the gold plating eventually wore-off.  But any of a number of scenarious could have occurred to get this piece to its current condition.

1861 'C-1' Gold dollar counterfeit

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