The coin's high price was due to a missing silver nickel plated alloy middle, which is present in all modern British pound coins.
The error happened during the minting process and resulted in the coin being all gold, resembling the old style pound coins that are no longer legal tender.
The coin's bimetallic design, with a gold outer ring and silver nickel plated alloy center, made the error version even more desirable to collectors, causing 23 offers and a bidding war.
The starting price was just 99p, but quickly increased by over 156 times.
Similar error coins have sold for £205 and £206 in recent months.
The Royal Mint produces between three million and four million coins a day, so mistakes can happen, but these rare errors often make the coins more valuable as they are produced in low numbers.
In April, a rare £1 coin sold for £155 due to upside down writing, and in February of last year, another mis-struck £1 coin sold for £112 with a silver-colored inner part resembling a fried egg.