The 1940 Reverse of 1938 Jefferson Nickel is worth anywhere from $0.15 in worn condition to over $3,500 for high-grade specimens. This fascinating variety represents a transition period in U.S. Mint history, where old die designs lingered as newer techniques were introduced, making it a favorite for eagle-eyed collectors and casual treasure hunters alike.
| Condition | Estimated Value |
|---|---|
| Good / Fine (Circulated) | $0.15 – $0.50 |
| Extremely Fine (XF) | $1.50 – $4.00 |
| Uncirculated (MS60+) | $15 – $65 |
| Gem Mint State (MS65+) | $150 – $3,500+ |
Understanding the 1940 Jefferson Nickel Varieties
When you look at a nickel from 1940, you are seeing a coin from only the third year of the Jefferson design. At this time, the Mint was refining how Monticello—Jefferson’s home—appeared on the back of the coin. If you have found one in your change, using the best coin identifier app can help you determine which specific version you have in your hand.
Essentially, there are two types of reverses for the 1940 nickel. The “Reverse of 1938” is the old style, characterized by steps on Monticello that look wavy or blurry. The “Reverse of 1940” features straight, crisp steps. Because the 1938 style was supposed to be replaced, finding it on a 1940-dated coin is a specific “mule” variety that collectors actively seek out.
By using tools like CoinHix, you can zoom in on the building steps to see if they are the “wavy” type or the “straight” type. While millions were made, certain mint marks combined with the old reverse can lead to a significant payday for the lucky owner.
How to Identify the Reverse of 1938 vs. 1940
The secret to identifying this coin lies entirely on the back (the reverse side). You need to look closely at the steps leading up to the door of Monticello. In the “Reverse of 1938” variety, the steps are not clearly defined; they appear as soft, flowing lines that merge into one another.
In contrast, the “Reverse of 1940” (the “new” style) shows six distinct, parallel steps with sharp edges. Collectors use the term “Full Steps” to describe the highest quality strikes, but even on worn coins, the difference in the general shape of the staircase is visible with a magnifying glass.
| Feature | Reverse of 1938 (Old) | Reverse of 1940 (New) |
|---|---|---|
| Steps Appearance | Wavy, blurry, “mushed” | Sharp, straight lines |
| Rarity | Common for Philly / Rare for Proofs | Standard / Intended design |
The Value of 1940 Nickels by Mint Mark
The value of your 1940 nickel depends heavily on where it was made. Coins with no mint mark were struck in Philadelphia. Those with an “S” were made in San Francisco, and those with a “D” were made in Denver. You can find the mint mark on the reverse, to the right of the Monticello building.
Current 1940 Jefferson Nickel auction records and prices show that Philadelphia strikes (no mint mark) with the Reverse of 1938 are quite common. However, finding an “S” or “D” mint mark with this specific old reverse is much more difficult and considerably more valuable.
For the everyday collector, most 1940 nickels found in circulation are only worth a few cents over face value. However, if you find one that looks “shiny” or like it has never been touched, it could be worth between $20 and $100 depending on the luster and the sharpness of the strike.
Grading and the “Full Steps” Bonus
In the world of coin collecting, “grading” is the process of determining a coin’s condition on a scale from 1 to 70. A 1940 nickel in “Mint State” (MS) condition means it has no wear from being used in pockets or cash registers. Professional graders also look for “Full Steps” (FS).
Finding a 1940 nickel with the Reverse of 1938 that also has five or six fully separated steps is the “Holy Grail” for Jefferson Nickel hunters. Because the 1938 die was naturally “mushy,” getting a strike strong enough to show full steps is incredibly rare.
Many people use the CoinHix app to compare their coin’s condition against high-resolution photos of graded coins. This helps you decide if it is worth the $20-$40 fee to send your coin to a professional grading service like PCGS or NGC.
| Grade | Estimated Value (No Mint Mark) | Estimated Value (S Mint Mark) |
|---|---|---|
| MS63 | $15 | $25 |
| MS65 | $45 | $110 |
| MS66 Full Steps | $350 | $1,250+ |
Special 1940 Proof Nickel Values
In 1940, the Mint also produced “Proof” coins specifically for collectors. These coins were struck using polished dies and blanks to create a mirror-like finish. Interestingly, both the 1938 and 1940 reverses were used for these proof sets.
The 1940 Jefferson nickel value for proof versions is significantly higher than for standard business strikes. A Proof 1940 nickel with the Reverse of 1938 is quite rare. Most proofs from that year utilized the updated 1940 die with the straight steps.
If you come across a nickel that looks like a mirror and has the blurry steps of the 1938 design, you could be looking at a coin worth $500 to $2,000. These are rarely found in pocket change and are usually found in old estates or specialized coin collections.
Tips for Cashing In on Your Find
If you think you have a valuable variety, don’t rush to the nearest pawn shop. Pawn shops often pay only a fraction of a coin’s true market value. Instead, start by using CoinHix to verify the variety and get a baseline price estimate based on recent auction data.
The next step is to protect the coin. Avoid cleaning it! Cleaning a coin with soap, water, or cloth can actually create tiny scratches that destroy its numismatic value. Place it in a soft “flip” or a plastic container to keep it from getting scratched.
Finally, consider visiting a local coin shop or attending a coin show. Collectors are usually happy to take a quick look at a coin and tell you if it’s worth grading. Remember that the “Reverse of 1938” is a subtle detail—patience and a good eye are your best tools.
FAQ
Q: Is a regular 1940 nickel without the variety worth anything?
A: Most 1940 nickels found in common circulation are only worth about $0.15 to $0.25. They are old and made of a copper-nickel alloy, but they are not rare unless they are in exceptionally “bright” and uncirculated condition.
Q: Where is the mint mark on a 1940 Jefferson Nickel?
A: You can find the mint mark on the reverse side of the coin, to the right of the Monticello building, between the building and the rim. If there is no letter there, it was minted in Philadelphia.
Q: Is there any silver in a 1940 nickel?
A: No. Silver was only added to Jefferson Nickels from 1942 to 1945 (known as “War Nickels”). 1940 nickels are composed of 75% copper and 25% nickel.
Q: How can I tell if the steps are “Full Steps”?
A: To qualify for the “Full Steps” designation by grading services like PCGS, there must be at least five or six complete, uninterrupted lines visible on the staircase of Monticello. Any scratches or marks that break these lines will disqualify the coin from the “FS” status.
