The 1886 Type 2 Indian Head Penny is worth anywhere from $50 in worn condition to over $15,000 in pristine mint state. This specific coin is a favorite among collectors because it represents a distinct design change that occurred mid-year, making it much rarer than its Type 1 counterpart.
| Condition | Estimated Value (Type 2) |
|---|---|
| Good (G-4) | $50 – $65 |
| Fine (F-12) | $110 – $140 |
| Extremely Fine (EF-40) | $250 – $320 |
| Uncirculated (MS-63) | $800 – $1,200 |
| Choice Mint State (MS-65+) | $4,500 – $15,000+ |
Understanding the 1886 Indian Head Penny Variety
If you have found a penny from 1886 in an old jar or a family collection, you might be looking at a significant windfall. However, not all 1886 pennies are created equal. In that year, the United States Mint modified the dies used to strike these coins. This resulted in two distinct varieties: Type 1 and Type 2.
If you aren’t sure which one you have, using the best coin identifier app can help you zoom in on the specific details that distinguish these two types. Most casual observers miss the differences, but for a collector, the Type 2 is the “holy grail” of that year.
The Type 2 variety is significantly scarcer than the Type 1. While millions of pennies were struck in 1886, it is estimated that only a fraction of them featured the new design. This scarcity drives the price up dramatically, even for coins that show significant signs of wear from being used in 19th-century commerce. Knowing how to spot the difference is the first step in determining if your pocket change is worth fifty dollars or five thousand.
How to Identify the 1886 Type 2 Indian Head Penny
The secret to identifying the 1886 Type 2 Indian Head Penny lies in the position of the letters in “AMERICA” and the feathers in Lady Liberty’s headdress. On the Type 1 coin, the lowest feather on the headdress points between the “I” and “C” of AMERICA. On the Type 2 coin, the feather has been shifted and points between the “C” and the “A.”
Additionally, the positioning of the letters relative to the bust of Lady Liberty changed. In Type 2, the word “AMERICA” is shifted slightly clockwise. To get a precise look, many hobbyists use CoinHix, which provides high-resolution reference images to compare your coin against. Looking at these tiny details without a magnifying glass can be difficult, but they are the key to the coin’s value.
Another way to verify your find is to look at the hair ribbons on the back of Liberty’s neck. While the feather position is the most reliable “tell,” the overall sharper relief of the Type 2 design is often noticeable to the trained eye. If your coin matches the Type 2 description, you are holding a much rarer piece of American history than the common 1886 cent.
| Feature | Type 1 Characteristics | Type 2 Characteristics |
|---|---|---|
| Lowest Feather | Points between I and C | Points between C and A |
| Letter Positioning | Standard alignment | Shifted clockwise |
| Rarity | Common | Scarce/Rare |
Analyzing the 1886 Type 2 Indian Head Penny Value by Grade
When it comes to pricing, the “grade” or condition of your coin is everything. A heavily scratched or cleaned coin will always be worth less than one that has been preserved in a paper wrap for over a century. For those checking their collection, the 1886 Type 1 and Type 2 price differences show that even in low grades, the Type 2 commands a massive premium.
In “Good” condition, where the letters are visible but the details on the feathers are worn smooth, the coin easily sells for over $50. Once you move into “Fine” or “Very Fine” grades where “LIBERTY” is clearly legible on the headband, the price jumps into the hundreds. The demand for this variety is constant because it is a “key date” variant for anyone trying to complete a full set of Indian Head pennies.
For lucky finders with a coin that still has its original copper glow, the value can skyrocket. Red (RD) or Red-Brown (RB) specimens are incredibly rare for Type 2. Using an app like CoinHix can help you determine the color designation of your coin, which is a vital step before sending it to a professional grading service like PCGS or NGC.
Why the 1886 Type 2 Variation Is So Rare
The rarity of the Type 2 is primarily due to the timing of the hub change at the Philadelphia Mint. For the first half of 1886, the mint used the “Type 1” hub that had been in use for years. Sometime during the middle of the production cycle, they switched to the refined “Type 2” design.
Because the majority of the 17.6 million pennies minted that year were already struck using the old design, the number of Type 2 coins released into circulation was quite small. This makes them much harder to find in the wild today. Just like the 1898 Indian Head Penny value information, the market for these coins is driven by collectors who need specific years and types to fill their albums.
Collectors often refer to 1886 as a “transitional” year. Whenever a mint changes designs mid-stream, it creates a “variety” that becomes a target for specialists. If you happen to have a Type 2 in high grade, you aren’t just holding a penny; you’re holding a piece of numismatic transition that represents a shift in American manufacturing history.
| Grade Detail | Visual Markers | Price Range |
|---|---|---|
| VG-8 (Very Good) | Heavy wear, some detail in motto | $75 – $90 |
| VF-20 (Very Fine) | LIBERTY is full and plain | $160 – $210 |
| AU-50 (About Uncirculated) | Traces of wear only on high points | $400 – $550 |
The Impact of Color on Penny Value
Copper coins are unique because their value is heavily influenced by their color. When a penny is first minted, it has a bright, shiny orange-red luster. Over time, exposure to oxygen turns the copper brown. Professional graders categorize these as Red (RD), Red-Brown (RB), or Brown (BN).
An 1886 Type 2 penny in “Brown” condition is still valuable, but a “Red” version can be worth ten times as much. Most people who find these coins today will find the “Brown” version, as copper reacts quickly to the oils on human hands and the moisture in the air. If you think you see a hint of original red luster on your coin, handle it only by the edges and store it in a PVC-free flip immediately.
To get a better sense of where your coin falls on the spectrum, you can use CoinHix to see side-by-side comparisons of the different color stages. This is one of the most critical factors in determining whether a coin is worth a nice dinner out or a down payment on a new car.
Where to Sell Your 1886 Type 2 Indian Head Penny
Once you’ve identified your coin and estimated its grade, you might be wondering how to turn that metal into cash. For a high-value coin like the 1886 Type 2, you have several options. Local coin shops are the fastest route, but they often offer “wholesale” prices so they can resell the coin for a profit.
For maximum value, many collectors turn to specialized auction houses like Heritage Auctions or Stacks Bowers, especially if the coin is graded by PCGS or NGC. Selling on platforms like eBay is also an option, but you must be careful with shipping and potential scams. Regardless of where you sell, having a clear understanding of the market value—aided by modern digital tools—ensures you don’t get underpaid for your rare find.
Always remember that rarity and demand are the two pillars of coin value. Since the 1886 Type 2 is a recognized variety in all major coin albums, there will always be a buyer waiting for it. The better the condition, the more aggressive those buyers will be.
FAQ
Q: How can I tell for sure if my 1886 penny is a Type 1 or Type 2?
A: Look at the last feather on Lady Liberty’s headdress. If it points between the “I” and the “C” in AMERICA, it is the common Type 1. If it points further to the right, between the “C” and the “A,” you have the valuable Type 2.
Q: Should I clean my 1886 penny to make it look better?
A: No! Never clean a rare coin. Cleaning creates microscopic scratches that professional graders can easily spot. A cleaned coin can lose 50% or more of its market value instantly.
Q: Is the 1886 Type 2 penny rare?
A: Yes, it is considered much rarer than the Type 1 version. Because it was a mid-year design change, far fewer were produced and even fewer have survived in good condition over the last 130+ years.
Q: What is the most expensive 1886 Type 2 penny ever sold?
A: High-grade specimens in “Mint State 65 Red” have sold for over $20,000 at auction. However, most examples found today are in circulated condition and are worth between $50 and $300.
