A Multi-Billion Dollar Market
For the past few centuries, coin collecting has gradually morphed from a minor hobby into an everyday obsession for Amercians, many of whom are searching for rare coins that could fetch hundreds of thousands of dollars at auction.
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As the popularity of coin collecting continues to grow with each passing year, the market for currency valued at around $18 billion is set to increase to nearly $44 billion by 2034.
Why Are Some Coins Worth so Much More Than Others?
The increased value of coins typically results from unusual errors in the minting process or the limit of coins in circulation.
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A well-trained eye can easily differentiate between coins that are worth their face value and those that could allow someone to pay off their mortgage. However, to the average American, most can’t tell the difference.
The Value of Rare Pennies
While most would assume the most valuable coins would be made from gold or silver and date back to Roman times, plenty of plain copper pennies from the 20th century have become increasingly sought after by collectors, drastically increasing their price.
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One such example is wheat pennies, which were first minted in 1909. The earliest examples were made from 95% copper. However, following the outbreak of World War II, the coins’ composition was changed to zinc-coated steel in 1943 for a single year, as copper was needed for war.
The Value of 1943 Wheat Pennies
The 1943 wheat pennies, which portray an image of Abraham Lincoln on one side and two stalks of wheat on the reverse, are now relatively valuable due to certain errors that occurred during the minting of the steel variants.
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Examples in perfect condition can fetch anywhere from a few hundred dollars to well over $1,000.
1943 Bronzed Lincoln Penny
A large number of bronze Lincoln pennies were released in 1943 by accident, which are now highly sought after in the modern era, per CNBC.
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Coin collectors refer to this cent as “the most famous error coin in American numismatics,” and the odds of finding such a coin are slim to zero as it is thought only around 20 are currently in existence.
A Penny Worth $200,000
David Stone, a coin cataloger for Heritage, explained that one example was formerly in the possession of a man known as Don Lutes before his passing.
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“A nice circulated example, like Lutes’ coin, could sell for around $150,000 to $200,000. Heritage auctioned a similar one — in slightly lower grade — for $186,000 earlier this month,” he said.
Doubled Die Pennies
In the world of coin collecting, extremely rare pennies are defined as “doubled die” coins, which have been sold for astronomical amounts at auction.
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During the production of coins at a factory, pennies are pressed with a die, a stamp that features the picture that will later appear on the coin. However, sometimes the steel die strikes the metal twice, resulting in doubled die coins.
Doubled Die Coins Sell for Over $1.3 Million
Last year, a Doubled die penny minted in 1958 was auctioned by GreatCollections Coin Auctions, the official auctioneer of the American Numismatic Association, and sold for a staggering $1.366 million.
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Experts have ascribed the value to a unique error that resulted in “severe doubling of letters in the motto IN GOD WE TRUST and the word LIBERTY on the front of the coin,” explained Ian Russell, president at GreatCollections headquarters in Irvine, California.
Coin Expert Shares Thoughts on Doubled Die Coins
Ohio coin collector and founder of the blog CoinHub Blake Alma explained that doubled die pennies may portray designs and text stamped twice, resulting from a “minor deviation” or a “major structural anomaly.”
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“Minting errors like the doubled die penny are supposed to be inspected, seen, and then destroyed by the mint,” Alma explained.
The Desire for Doubled Die Pennies
Alma explains that doubled die pennies are some of the most sought-after coins on the market because they are considered incredibly rare.
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“Doubled die pennies are highly sought after by coin collectors because they are considered a rare and valuable error. The Doubled image on the coin makes it unique and highly prized among collectors,” said Alma.
The Value of Rare Bronze Pennies Continues to Rise
Alma explained that the rarity of the doubled die pennies adds “an extra level of excitement and interest,” which has led to a drastic increase in the price of these unique bronze coins.
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“Coin collecting is a popular hobby, and many people are willing to pay top dollar for unique and rare pieces to add to their collections,” he continued. “The fewer doubled die pennies that exist, the higher their value becomes.”
