Photo Credit: Atlas-Numismatics
Brazilian 12 Guilder Gold Coin Restrike from 1954
Buy It Now Price: $604 (price as of 2017; item no longer available)
Pros:
-Here is an unusual and captivating Brazilian 12 guilder gold coin restrike from 1954. The original coins were minted in 1645/46, a period when the Dutch controlled part of the Portuguese colony of Brazil.
-This Brazilian 12 guilder restrike is a klippe, or square, coin that measures 21.6 mm (0.85 inches) by 21.7 mm (0.85 inches).
-We do not know the fineness of these gold restrikes, but it is certain that they are very high purity. I would guess they are .900 fine gold or better. Given that this particular coin weighs 7.74 grams (0.2488 troy ounces), we can infer that the melt value is at least $289 with spot gold trading at $1,292. This means the restrike is selling for a moderate 109% premium over bullion value.
-The obverse features the roman numerals “XII” (for 12 guilders) and “GWC” (for Geoctroyeede West-Indische Compagniev), while the reverse has “ANNO BRASIL” and the date, 1645.
-The Netherlands seized a large portion of Brazil from the Portuguese between 1630 and 1654, in an attempt to exploit the region’s valuable sugarcane plantations. The coastal city of Recife became the capital of Dutch Brazil during this period.
-The original Brazilian 12 guilder gold coins were struck by the Geoctroyeede West-Indische Compagniev, or Dutch West India Company, in the Pernambuco region of Brazil from late 1645 into 1646. The coins were made with West African gold delivered to the port of Recife aboard the Dutch galleon “Zeeland”.
-The original Brazilian 12 guilder pieces, along with their very similar 3 and 6 guilder counterparts, are among the rarest of Brazilian coins. Although it is estimated that between 1,500 and 2,000 of each denomination were struck, almost all of them were subsequently melted down or lost. As a result, there are only around 50 to 60 examples of all three denominations still extant, and perhaps 15 to 20 of those are part of museum collections.
-The Brazilian 12 guilder gold coin featured above was restruck in 1954 during the Exposition Numismatic in Sao Paulo in celebration of the city’s 400th anniversary. It is prominently labeled “COPIA” (copy) on both sides so that it cannot be confused with an original specimen. It is also stamped “S. PAULO IV CENT.”
-While the mintage of this Brazilian 12 guilder restrike is unknown, a clue is provided by the fact that they have all been individually serialized (numbered). This specimen is number 119 and I have not seen any that are numbered above 200. As a result, I would guess that the total mintage of these restrikes is very low – probably between 200 and 300 pieces.
-Two other examples of this Brazilian 12 guilder restrike sold at auction recently. The first brought $800 plus an 18% buyer’s premium on October 25, 2012. The other sold for $850 plus a 17.5% buyer’s premium on May 1, 2013. These auction results compare very favorably to the $604 asking price for this specimen. It is also noteworthy that both of those auction sales were made to dealers, indicating that they believed the coins could potentially be resold to collectors for even higher prices.
-There is a strong relationship between the collector demand for a nation’s coinage and its GDP. Currently, Brazil is one of the largest emerging market countries, with a nominal 2016 GDP of nearly $1.8 trillion. Therefore, this Brazilian 12 guilder gold coin could serve as a great investment substitute in place of Brazilian stocks in your portfolio.
Cons:
-An original specimen of this Brazilian 12 guilder gold coin would be vastly more valuable than this restrike. In January 2011, an original example sold for $54,625 at auction, over 90 times the asking price of this restrike version. However, these restrikes are now over 60 years old in their own right and are gradually coming into their own as desirable specimens.
-This gold coin is highly illiquid, a common trait among fine art and antiques. I highly recommend that you hold this coin for many years if you decide to buy, otherwise there is a high probability that you will take a loss on any resale.
