UPDATE: Legendary 1936 Dot Cent–Finest of Three Known had been sold to an identified buyer for  $402,500.

Pre-sale estimates of the coin valued it at around $300,000. The penny was part of one of the most valuable Canadian coin collections ever offered at auction, however while the 1936 penny is certainly among the priciest Canadian coins ever sold, it did not a new record for the country. A 1911 Canadian silver dollar — one of only two known to exist — was sold in 2003 to a Canadian collector for $1.1 million

Heritage’s  2010 January Signature World Coin Auction features quite a number of great coins, but none are as famous as the legendary Canadian 1936 Dot Cent. This coin, struck in 1937 prior to the creation of coinage dies for George VI but never released for circulation, has seen its reputation grow exponentially since its discovery.

In early 1936, Great Britain’s George V passed away and was succeeded by his son King Edward VIII. As was common practice, for the remainder of 1936 the coinage continued to have the effigy of King George V. Toward the end of the year, and throughout the British Commonwealth coinage, models were made and dies produced with the effigy of King Edward VIII, but upon Edward’s abdication the dies were no longer valid and a severe shortage of Canadian 1, 10, and 25 Cent pieces arose in early 1937.

Because of the shortage, Canada was forced to continue producing coins dated 1936 with the portrait of King George V. Canadian authorities felt a need to distinguish this 1937 mintage from the 1936 production and a small Dot was placed on the reverse of the 1, 10, and 25 Cent coins. The dot is under the date on the 1 Cent coin, and under the bow on the wreath of the 10 and 25 Cent coins.

History tells us that only the 25 Cent piece was placed in circulation and that three pieces of the Dot Cents, and four pieces of the Dot 10 Cents are the only surviving examples. (more…)