The Holey Dollar is the nation’s first coin, minted in 1813 by order of Governor Lachlan Macquarie.

The Holey Dollar is the nation’s first coin, minted in 1813 by order of Governor Lachlan Macquarie.

By 1812, the penal colony of New South Wales had reached a point in its history that a formal medium of exchange was required to underpin a flourishing economy.

As Macquarie had no access to metal blanks to create his currency, he improvised and acquired 40,000 Spanish Silver Dollars as a substitute.

To make his new coinage unique to the colony, and to inhibit their export, he employed emancipated convict William Henshall to cut a hole in each silver dollar.

Each holed silver dollar was then over-stamped on both sides, around the edge of the hole. On one side, the date 1813 and the issuing authority of New South Wales.

And on the other side, the value 'Five Shillings' with some decorative embellishments of a fleur de lis, a double twig of six leaves and a tiny 'H' for Henshall at the junction of the twigs.

The application of the counter stamps is the point at which the holed silver dollar became the 1813 Holey Dollar, the nation's first locally made coinage.

While the original intention was to create 40,000 Holey Dollars from 40,000 silver dollars, spoilage and the despatch of samples back to Great Britain saw a slightly reduced number of Holey Dollars - 39,910 - released into circulation.

Today there are approximately 200 Holey Dollars held by private collectors with perhaps 100 held in museums. The coin is a national treasure and is revered and sought after by collectors, the world over.

When you look closely at the Holey Dollars shown above, each coin has a different date and the legend and portraits, can vary. From left to right, we note the dates 1757, 1788, 1789 and 1790. And the legend of Charles III and Charles IV.

The Holey Dollar is a story. Its narrative, is as much about Australian history as it is about European history, charting the changing Spanish monarchs, Ferdinand VI, Charles III, Charles IV and Ferdinand VII. And reflecting the associated political and social turmoil that so often occurs when a monarch dies or abdicates.  

As to why there are different dates and monarchs appearing on the Holey Dollars?

The simple answer is that the Holey Dollar was not created from a silver blank onto which a decorative pattern was stamped in a mass production process that produced thousands of uniformly struck coins, each featuring the same design. 

The Holey Dollar was created from another coin, a Spanish Silver Dollar, and that coin came with different dates and in various levels of quality, most well used.

Forty thousand Spanish Silver Dollars were imported by Governor Lachlan Macquarie from the East India Company to convert into forty thousand Holey Dollars, the nation's first circulating currency.

The order for the dollars was not date specific, any date would suffice. Ferdinand VI reigned from 1746 to 1759. Charles III, 1759 to 1788. Charles IV was the reigning monarch from 1788 to 1808 and Ferdinand VII endured a disrupted reign, 1808 and again between 1814 and 1833. 

And as each king ascended the throne, the design of the dollar was re-created with a re-styled legend and a re-styled portrait to record the new reigning monarch.

Holey Dollars are classified into types based on the legend and portrait of the monarch depicted on the original Spanish Silver Dollar. 

There are eight distinct types of Holey Dollars as photographed above. And detailed here.

Type 1 - Ferdinand VI Holey Dollar
Design: features the legend and portrait of Ferdinand VI (1746 - 1759).
Availability: 2

Type 2 - Charles III Holey Dollar
Design: features the legend and portrait of Charles III (1759 - 1788).
Availability: 22

Type 3 - Charles III, deceased, Holey Dollar
Design: features the legend and portrait of the deceased king Charles III, depicted on silver dollars issued in 1789 and 1790 when Charles IV was the reigning monarch.
Availability: 2

Type 4 - Charles III on Charles IV Holey Dollar
Design: features the legend of the reigning monarch Charles IV and the portrait of the deceased King Charles III.
Availability: 8

Type 5 - Charles IV Holey Dollar
Design: features the legend and portrait of Charles IV (1788 - 1808)
Availability: 129

Type 6 - Charles IV Continental Holey Dollar
Design: struck from a Continental Silver Dollar, featuring the legend and portrait of Charles IV.
Availability: 1

Type 7 - Ferdinand VII Holey Dollar
Design: features the legend and portrait of Ferdinand VII.  Ferdinand VII was exiled in 1808, Napoleon Bonaparte proclaiming his brother Joseph as king of Spain from 1808 to 1813.
Availability: 13

Type 8 - Hannibal Head Holey Dollar
Design: features the legend of Ferdinand VII and an imaginary portrait of the monarch referred to as the 'Hannibal Head'. Ferdinand VII was exiled in 1808, Napoleon Bonaparte proclaiming his brother Joseph as king of Spain from 1808 to 1813.
Availability: 2

Now, look closely again at the eight Holey Dollars shown above, and you will notice that the counter stamps, New South Wales, 1813 and Five Shillings applied discretely around the edge of the hole are not uniformly positioned. And there is no consistency as to which side of the coin they appear on.

As to why the counter stamps are in different positions and on different sides of the coin?

The counter stamps are important as technically the application of the counter stamps, New South Wales, 1813, and Five Shillings was the point at which the holed Spanish coin became the 1813 Holey Dollar, the nation's first locally made coinage.

A study of the surviving Holey Dollars reveals that Henshall's application of the counter stamps was wildly random, that the holed dollar was not placed in a particular position between the dies.

And it obviously didn't matter which side of the holed dollar was facing up. 

The process used a simple drop hammer system and speed was of the essence. Precision was simply not required which is why the counter-stamps of most Holey Dollars are 'all over the shop'.

The extent of wear on the counter stamps indicates the degree of circulation of the Holey Dollar.

It is noted that the Holey Dollar, as a high denomination coinage (Five Shillings) was stored by the Bank of New South Wales, as backup for their banknotes. Thereby minimising the wear of the counter stamps on most Holey Dollars.

In the realm of rare coins, Holey Dollars exist on a different plane. They transcend mere collectibles, and have become coveted objects that represent the pinnacle of Australia's numismatic industry, our very first coin.

Owning a Holey Dollar isn't just about adding another coin to a collection. It's about indulging in an experience, a fusion of history and prestige and we hope the information provided above, triggers your interest.

Remember, you are not just buying a coin, you own the experience. So enjoy it!

Final points to consider when acquiring a Holey Dollar

Setting a budget 

A budget is the first step in the task of acquiring a Holey Dollar knowing that at whatever level you spend, the Holey Dollar, as the nation's first coin, never goes out of fashion. And will always be in demand.

As a guide, let's look at the more readily available Type 5 Holey Dollar, featuring the legend and portrait of Charles IV. As the most readily available, it is therefore the most affordable. 

A starting price for a well circulated Type 5 Mexico Mint Holey Dollar is approximately $50,000. Prices move up from here, depending on the quality, the mint and the design type of the Holey Dollar. 

Be prepared to wait

There are less than two hundred Holey Dollars available to collectors. Compare it to the 1930 Penny, where fifteen hundred are believed to exist. So, if the 1930 Penny is rare, the Holey Dollar is 'super-rare'.

Our estimate is that one or two Holey Dollars may come onto the market annually.

Note that you could be waiting at least twenty years for the rarest types to come onto the market, Type 1 where there are two known, Type 3 (also two known), Type 6 (unique) and Type 8 (again, two known). Working against the buyer is the fact that Holey Dollars tend to be held for the long term, viewed as family heirlooms.

Some mints are rarer than others

Governor Lachlan Macquarie placed his order for the Spanish Silver dollars with the East India Company, the coins originating from various mints around the world. 

The percentage of Holey Dollars converted from the mints in Mexico, Lima, Potosi and Madrid are noted below.

• Holey Dollars converted from Mexico Mint dollars - 81 per cent

• Holey Dollars converted from Lima Mint dollars - 10 per cent

• Holey Dollars converted from Potosi Mint dollars - 8 per cent.

• Holey Dollars converted from Madrid Mint dollars - 1 per cent

Quality and price go hand-in-hand 

Macquarie did not set any quality parameters on his shipment of 40,000 coins. He wanted quantity. Not quality! That, and the fact that, the Spanish Silver Dollar was an internationally traded coin means that most Holey Dollars are today found well worn. The chart below indicates the percentage available to collectors at the various quality levels. 

Fair to Good 
Heavily circulated and akin to a washer.

About Fine to Good Fine
Extensive circulation, the general design recognisable but the significant parts of the design have worn away. Knocks in the fields will be visible.

About Very Fine to Very Fine
Circulated with some elements of the design, the detail in the hair and detail in the robes, worn down.

Good Very Fine to About Extremely Fine
Circulated with design details slightly worn.

Extremely Fine to Uncirculated 
Well preserved with the slightest hint of wear. Obviously, no wear in the uncirculated example, of which there is only one.

A final consideration of the counter stamps

With respect to Holey Dollars, the last item on your check list is to consider the counter stamps in the knowledge that the circulation of the Holey Dollar is reflected in the wear to the counter stamps.
Some Holey Dollars do show a precise alignment of the counter stamps and these pieces are highly valued.