You need a different coin shop. The piece appears fake because of the dentils and also because the surfaces look gold-washed instead of gold, though the odd gold color could have been from being in jewelry, I guess. Regardless, if it is real it is only an EF or so and appears to have been cleaned. The 1862 is the most common gold dollar and even in problem-free AU, which this coin does not appear to be, the piece is only worth $200-$300. If this piece is real it is worth less than $200-$300, which is obviously far less than 500 pounds.
You can argue if you want, but I know what I am looking at.
I know very little about this series. However, I have read that because of their small size, 'jeweler's copies' in good gold have been made, and turn up reasonably often.
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