Owner Comments:
The only Proof Pattern Dinero, struck at the Royal Mint as designed by Leonard C. Wyon. Similar to the future design of 1888, but not exactly. Very rare and desirable; only six minted. See history below.
Peru was struggling to regroup after the War of the Pacific. The Lima Mint was in dire straits; it's equipment deteriorating, some machinery still in use dated to the Colonial era. Chilean looters likely absconded with the old die punches for the minor coins, and skilled engraver Britten had passed in 1882, leaving the mint without anyone capable of preparing acceptable new coin.
With such paltry amounts of new coins exiting the mint, paper money was the circulating medium during this time. The solution for these issues was found in one Leonard C. Wyon, famed engraver since 1851 at the Royal Mint in the UK.
Example coins were sent to Wyon, and a contract was made for new dies, punches, and tools. Wyon considered these patterns as "proof of workmanship" only, stating "it is not usual for proof coins to be of exact standard." His coin dies, to the chagrin of the Peruvian mint, were thus prepared at slightly too large a diameter.
Because these matrices did not conform to the correct standards, the Peruvian government opted not to use them, except in the case of the Soles of 1888-1892, which are slightly larger than the Soles of 1893, when new hubs were engraved.
The Royal Mint was only able to produce 6 sets of pattern coins due to a busy schedule. Christensen reports that nine sets were made, however I am more likely to side with Flatt and Krause, who both report six total sets.
While the obverse of the 1886 Proof appears to be nearly identical to that of the 1888 Dinero, the reverse features are of different workmanship. It is unclear why the reverse was reworked for the coins of 1888, but I find the 1886 reverse to be of more artistic merit.
Two in Proof 65 at NGC, on in Proof 65 Cameo at NGC. Three total.
Krause lists a value of $1250 for Proof 60-63. Given the rarity of this coin, this is much to low. The Whittier coin brought $1207.50 in 2006. Prices have doubled since then for most better Peru, and even more so for rare patterns.
I know of only four examples, the three graded, one of which is the Whittier specimen (Cameo), and one which is photographed as the NGC/Krause price guide plate coin, and a fourth in a Peru museum. A fifth is likely in the possession of the Royal Mint.
Important Sources for the 1886 Proofs:
Christensen, William B. "Pattern Coinage of Peru." Article in "The Coinage of El Peru" by William L. Bischoff. American Numismatic Society. pp 177-190.
Flatt, H.P., "The Flawed Peruvian Proof Coins of 1886." American Journal of Numismatics (1989-) Vol. 2 (1990), pp. 151-165