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The 1886 Type 2 Indian Head Penny is worth anywhere from $50 in worn condition to over $15,000 in high-grade mint state. Finding one of these in your change or an old collection is an exciting discovery because of its unique transitional history.
| Condition | Estimated Value Range |
|---|---|
| Good / Very Good (Worn) | $50 – $85 |
| Fine / Extra Fine (Detailed) | $150 – $350 |
| Uncirculated (Mint State) | $650 – $15,000+ |
Why the 1886 Type 2 Indian Head Penny is So Special
To understand the value of your coin, you first need to know that 1886 was a “transitional” year for the U.S. Mint. During this year, the Chief Engraver modified the design of the Indian Head Penny mid-way through production. This resulted in two distinct varieties: Type 1 and Type 2.
The Type 2 is significantly rarer than the Type 1. While millions of pennies were struck in 1886, the Type 2 reverse and obverse tweaks occurred later in the year. If you aren’t sure which one you have, using a top coin identifier app can help you zoom in on the specific details that separate a common penny from a multi-thousand dollar rarity.
Most everyday Americans who find an 1886 penny actually have the Type 1. However, if you are lucky enough to hold a Type 2, you are looking at one of the “key dates” or “semi-key dates” of the entire Indian Head series. Using tools like CoinKnow makes it easy to compare your coin against high-resolution images of known Type 2 specimens.
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How to Identify the 1886 Type 2 Variety
The difference between a Type 1 and a Type 2 is subtle but crucial for pricing. On the front (obverse) of the coin, you need to look at the positioning of the “feather” in Lady Liberty’s headdress.
On the Type 1, the lowest feather points between the letters “I” and “C” in “AMERICA.” On the Type 2—the more valuable one—the lowest feather points between the “C” and the “A” in “AMERICA.” This tiny shift in the hub design marks the difference between a $10 coin and a $100 coin in the same condition.
Your Old Coin Could Be Valuable!
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| Feature | Type 1 Description | Type 2 Description |
|---|---|---|
| Feather Alignment | Points between I and C | Points between C and A |
| Rarity | Common | Scarce / Rare |
Grading and Condition: The Key to Maximum Value
Once you have confirmed that you have a Type 2, the next step is determining the “grade.” Grade refers to the physical condition of the coin on a scale from 1 to 70. For old copper pennies, even a small amount of wear can drop the price significantly.
Professional collectors look for “Full Liberty” on the headband. If the letters in “LIBERTY” are worn away, the coin is likely in “Good” or “Very Good” condition. If the letters are sharp and the feathers show individual strands, the coin is “Extra Fine” or “Uncirculated.” Check out the 1886 Indian Head Penny price guide for Red Mint State grades to see how much the color of the copper affects the final sale price.
Your Old Coin Could Be Valuable!
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If you are a beginner, CoinKnow can guide you through the grading process by offering side-by-side comparisons. High-grade 1886 Type 2 pennies often require professional certification from services like PCGS or NGC to reach their full market potential.
The Market for 1886 Type 2 Pennies
The market for Indian Head Pennies has remained strong for decades because they are a staple of American numismatics. Because the Type 2 was a late-year change, fewer of them were released into circulation before the year ended. Collectors who are building a complete set of Indian Head cents must have both varieties, which keeps demand high.
Current auction trends show that even “scruffy” looking Type 2 pennies sell quickly on platforms like eBay. However, you should be wary of cleaned coins. If a penny looks unnaturally shiny or has horizontal scratch lines (hairlines), it has likely been cleaned, which can cut its value by 50% or more.
Your Old Coin Could Be Valuable!
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If you are interested in how this year compares to others in the series, you might also want to look at the current market value of an 1898 Indian Head Penny to see the price difference between common years and rare varieties. Generally, the 1886 Type 2 will always command a much higher premium.
Color Designations: Red vs. Brown
For copper coins, color is everything. When they are first minted, they are a bright “Red” (RD). Over time, oxygen turns them “Red-Brown” (RB) and eventually a chocolate “Brown” (BN).
A “Red” 1886 Type 2 is a magnificent rarity. Most surviving Type 2 pennies are Brown because they spent time in pockets or jars. If you find one that still has its original copper glow, do not touch it with your bare hands! The oils from your skin can cause permanent damage.
Your Old Coin Could Be Valuable!
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| Color Grade | Approximate Price (MS63) |
|---|---|
| Brown (BN) | $600 – $800 |
| Red-Brown (RB) | $1,200 – $1,800 |
| Red (RD) | $4,000+ |
Where to Sell Your 1886 Indian Head Penny
If you discover that you have a valuable variety, you have several options for selling. For coins worth $50 – $200, local coin shops or eBay are your best bets. For high-value specimens worth over $1,000, you should consider a specialized auction house like Heritage Auctions or GreatCollections.
Before you sell, make sure you have used CoinKnow to verify the variety. Many people mistake the Type 1 for the Type 2 and are disappointed when they reach a dealer. Having clear photos and a basic understanding of the grading scale will help you negotiate a fair price.
Remember that a dealer has to make a profit, so they will typically offer you 60% to 80% of the “book value.” Selling directly to another collector can net you more money, but it requires more effort and knowledge of the market.
FAQ
Frequently Asked Questions about the 1886 Type 2 Penny
Q: How many 1886 Type 2 pennies were minted?
A: While the total mintage for 1886 was 17,654,290, the U.S. Mint did not track how many were Type 1 versus Type 2. Experts estimate that the Type 2 makes up only a small fraction of that total, likely less than 15-20%.
Your Old Coin Could Be Valuable!
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Q: Can I find an 1886 Type 2 in my spare change today?
A: It is extremely unlikely to find any Indian Head Penny in modern circulation, let alone a rare 1886 Type 2. They were replaced by the Lincoln Penny in 1909. However, they are frequently found in “unsearched” estate bags or old family jars.
Q: Should I clean my 1886 penny to make it more valuable?
A: No! Never clean a collectible coin. Cleaning removes the original surface (patina) and leaves microscopic scratches. Collectors prefer a dirty, authentic coin over a shiny, cleaned one. Cleaning can ruin a coin’s value instantly.
Q: What is the most an 1886 Type 2 has ever sold for?
A: High-grade examples in “Red” condition have sold for over $20,000 at auction. The value depends entirely on the numerical grade assigned by a professional grading service.