Golden chains bind tighter than iron. (German proverb)

The literal translation of gnadenpfennig is “penny of grace” or “penny of favor”. But, of course, a gnadenpfennig is not a penny, or any fractional coin for that matter. The word “pfennig” is merely an Early New High German term for a coin and/or a medal. After all, people in the 16th century did not distinguish between coins and medals as clearly as numismatists do today. For early modern people, a gnadenpfennig was one of the gifts given by superiors to their subordinates in the hope of securing their loyal service.

But a gnadenpfennig was not intended to be kept in a coin cabinet. They were worn as a pendant on a gold chain, which was usually also part of the princely gift. In this way, the owner of the gnadenpfennig displayed their own importance as the pieces not only represented a financial value, but also reflected the rank of the person who wore them. It proved that its owner was closely associated with the ruler.

Those who own golden chains need not to be bound with iron ones. (German proverb)

When Did the Gnadenpfennig Come About?

We do not know exactly when the first gnadenpfennigs were created, but from the late 14th century, wealthy rulers became increasingly fond of giving gold chains with pendants to their knights and courtiers: order chains, chains for knights and marksmen, even oversized rosaries. But there was no personal reference that could make a chain identifiable as the gift from a particular ruler. Pope Paul II took this step when, for the Jubilee of 1470, he had double-sided medals of various metals made. They were probably intended as precious gifts for particularly prominent pilgrims to Rome. We know this not only from written sources: such pieces have been preserved in the Vatican and the Museo Correr.

This is nothing short of a small miracle, since gnadenpfennigs were made of precious materials and were melted down as soon as their owner ran into financial difficulties. We know of one such case from Ulm. The merchant Ulrich Krafft (1550-1621) had his gnadenpfennig and the chain melted down when he got in financial difficulties, only to have the pendant recast at a later time (using less valuable metal). On another occasion, as Krafft stated himself in his autobiography, he had a gnadenpfennig presented to him by the Prince-Abbot of Kempten in 1587 melted down – allegedly because it was made of inferior gold. The timing, however, suggests that Krafft melted it down to finance his wedding. There are also cases where pieces were melted down because the person depicted on the gnadenpfennig fell out of favor. This happened in 1495 to a 1471 gnadenpfennig by Bona of Savoy.

They are linked by the golden chain. (Dutch proverb)

The Gnadenpfennig at Court

In the second half of the 16th century, the gnadenpfennig was among the standard gifts used by princes to present their courtiers with. Although they could be given at any time, it is more likely that they were given at New Year’s celebrations, on the prince’s birthday, on the occasion of a promise of loyalty, the attainment of a special office, a political success or a funeral. In this context, it is important to remember that such a gift came with strings attached as it was expected to be returned. After all, this was no one-sided action but a bilateral transaction – a gift required something in return. When a prince gave a gnadenpfennig to a servant, they expected the loyal service of the recipient in return.

Every chain is a burden, even if its links are made of gold. (Bohemian proverb)

A Political Tool

Especially in times of political unrest, the wearer of a gnadenpfennig made it clear to everyone which side he was on. Therefore, it should not come as a surprise that, especially during the Thirty Years’ War, gnadenpfennigs played an important role. By then, the form had slightly changed. The medal itself had become a beautiful gem, richly decorated by the goldsmith, hanging from three fine chains, which could be attached to the heavy gold chain by means of a ring.

The portrait of the famous Bernese mercenary leader and diplomat Hans Jakob von Diesbach (1559-1627) shows how such gnadenpfennigs on three chains were attached. In this case, it is a piece with the portrait of Henry IV of France from 1598. We know from written sources that such gnadenpfennigs were treated almost like the person they depicted: the gem was pressed fervently to one’s heart and soaked with tears when the person depicted died.

We are offering a particularly magnificent specimen with an estimate of 75,000 euros as lot No. 13. The gem with the portrait of Gustav II Adolph is a valuable piece of jewelry decorated with the finest enamel and a large river pearl. The loop is decorated with a finely cut amethyst. This was a great treasure in the 17th century, worth as much as a diamond, sapphire, ruby or emerald. It was not until the huge amethyst deposits of Brazil were discovered in the 19th century that the price fell. When this gnadenpfennig was sold at an auction of Münzen und Medaillen AG in Basel in 1971, it jumped from an estimate of CHF 30,000 to incredible CHF 70,000 plus buyer’s premium. When we hear this sum today, we cannot even imagine what it meant at the time. Let’s contrast it with some other results: The gnadenpfennig sold for 35-times as much as a perfect reichstaler of the Swedish king John III (CHF 2,000 at the time) and almost three times as much as an aureus of Elagabalus with the reverse “stone of Emesa” in extremely fine to FDC (CHF 25,000 at the time), which were both sold in the same sale. Let us put it even more clearly: CHF 70,000 equaled the yearly income of SEVEN(!) average Swiss families with two children in 1971.

Golden chains are good, but no chain is the best chain. (Portuguese proverb)

A Sign of Loyalty

Long after gnadenpfennigs had gone out of fashion, they continued to be worn. No longer as a sign of alliance to a ruler, but as a political statement. This is illustrated by a later-produced gold gnadenpfennig with the portrait of Philip II of Spain, under whom the Netherlands declared its independence. The gnadenpfennig alludes to the so-called geuzenpenning. They depict the portrait of the Spanish king with the same obverse legend – (translated) always loyal to the king – but commented on this legend with the satirical depiction of two beggar’s sacks and a handshake. The geuzenpenning implied that the Dutch had become beggars because of their loyalty to the Spanish ruler, and that is why they refer to themselves as Geuzen (= beggars). The specimen offered at our Berlin Auction Sale is more complex. It does not show the characteristic beggar’s sack on the reverse, leaving one to wonder whether a member of a Geuzen family was commemorating their ancestors or whether a supporter of Spanish ruler was showing their loyalty to the Spanish king.

Gnadenpfennigs in Collections

For centuries, gnadenpfennigs were the highlights of any numismatic collection. Kings kept them in their cabinets of art and curiosities, as we can see on a picture of the art chamber of the Polish king Sigismund III. Today, the lavishly enameled and decorated cimelia are considered a niche field of numismatics that is actually quite affordable in relation to the incredible rarity and the historical significance of the pieces. This is because they do not fit into a numismatic investment portfolio. Investors set the value of a numismatic specimen based on type, rarity and condition. Unique pieces are difficult to classify in this way – and almost all gnadenpfennigs are unique. That is why they are perfect collector’s items. They offer what we love so much about numismatics: they are tangible history. With (almost) every piece, we can assume that the person depicted on it once held it in their hands in order to give it to the recipient. 

The historical significance of a numismatic object could not be greater than this.

Bibliography: 

Ulrich Pfisterer, Lysippus und seine Freunde. Liebesgaben und Gedächtnis im Rom der Renaissance oder: Das erste Jahrhundert der Medaille. Berlin 2008