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The 1940 Reverse of 1938 Jefferson Nickel is worth anywhere from $0.15 in worn condition to over $3,500 for high-grade specimens with Full Steps. While most of these coins found in pocket change are only worth face value, identifying this specific transitional variety can lead to a significant payday for lucky collectors.
| Condition | Estimated Value (Common) | Rare Variety Value |
|---|---|---|
| Circulated (G-VF) | $0.05 – $0.25 | $1.00 – $5.00 |
| About Uncirculated | $0.50 – $1.00 | $10.00 – $25.00 |
| Mint State (MS65) | $15 – $30 | $100 – $300+ |
Understanding the 1940 Reverse of 1938 Nickel Variety
If you have just started hunting through your spare change, you might wonder why a 1940 nickel would be labeled as having a “Reverse of 1938.” During the early years of the Jefferson Nickel series, the United States Mint made a subtle design change to the building of Monticello on the back of the coin. Most 1940 nickels feature the “Reverse of 1940,” but a small number were struck using the older 1938 hubs. Identifying this variety is much easier when you use a top coin identifier app to zoom in on the specific details of the steps.
The primary difference lies in the steps of Monticello. The “Reverse of 1938” features steps that are slightly wavy and lack crisp, defined horizontal lines. In contrast, the “Reverse of 1940” (the standard version) has steps that are straight and sharply defined. For everyday Americans, this might seem like a tiny detail, but for serious numismatists, it marks the difference between a common coin and a collectible variety. Using the CoinKnow app can help you distinguish these fine lines without needing a professional jeweler’s loupe.
Because the Mint was transitioning its equipment, these “mule” varieties occurred at the Philadelphia, Denver, and San Francisco mints. However, the 1940-S (San Francisco) variety with the 1938 reverse is considered the most distinct and sought-after by enthusiasts. If you find one in high grade, you should immediately check the current market value for 1940 Jefferson Nickel Mint State coins to see what recent auctions are yielding.
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How to Spot the 1938 Reverse on a 1940 Nickel
To the naked eye, all 1940 nickels look identical. But if you look closely at the “Steps of Monticello” on the reverse side, the secret is revealed. The 1938 reverse hubs produced steps that appear “blurry” or “wavy.” They don’t have the sharp, rectangular edges seen on later designs. This is often described as the “wavy steps” variety.
Another key identifier is the thickness of the steps. On the 1938 hub, the steps are thinner and the transition between the steps and the base of the building is less pronounced. If your coin is heavily worn, this detail might be lost, which is why “Full Step” designations are so important for value. When you use CoinKnow, you can compare high-resolution photos of both varieties side-by-side to confirm your find.
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Beyond the steps, collectors also look at the “S” or “D” mint marks on the reverse. While the Philadelphia mint produced the most coins, the San Francisco (1940-S) variety with the 1938 reverse is a true prize. Identifying these nuances is the first step in determining the 1940 Jefferson Nickel price and rarity.
| Feature | Reverse of 1938 (Rare) | Reverse of 1940 (Common) |
|---|---|---|
| Step Quality | Wavy, blurred lines | Straight, sharp lines |
| Visual Impact | Looks “worn” even in high grade | Clean architectural look |
The Role of Mint Marks in 1940 Nickel Value
The location of the mint mark on a 1940 nickel is on the reverse side, just to the right of the Monticello building. There are three possibilities: no mark (Philadelphia), “D” (Denver), and “S” (San Francisco). Each mint had a different production volume, which directly impacts the scarcity of the “Reverse of 1938” variety today.
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Philadelphia struck over 176 million nickels in 1940, making them very common. Denver produced about 43 million, and San Francisco produced nearly 40 million. While millions were made, only a fraction were struck with the 1938 back. Historically, the San Francisco 1940-S with the 1938 reverse is the most valuable among the three when found in Uncirculated condition.
If you have a collection of old nickels, using a tool like CoinKnow allows you to catalog your coins by mint mark and variety effortlessly. Knowing the specific mint helps you narrow down whether your coin is a common pocket change find or a rare transitional error that should be sent for professional grading.
| Mint Mark | Mintage Total | Rarity Score (Rev of 38) |
|---|---|---|
| P (None) | 176,485,000 | Moderate |
| D (Denver) | 43,540,000 | High |
| S (San Francisco) | 39,690,000 | Very High |
Grading and the “Full Steps” Designation
When looking at the 1940 Jefferson Nickel, “Full Steps” (FS) is the holy grail for collectors. This term refers to a nickel that has at least five or six fully visible lines in the steps of Monticello. Because the Reverse of 1938 design was naturally “wavy” and less defined, finding a 1940 Reverse of 1938 with Full Steps is incredibly rare.
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Most nickels quickly lost detail in the steps due to circulation or weak striking at the mint. A 1940 nickel in MS65 (Mint State 65) might be worth $20, but that same coin with a Full Steps designation could jump to $500 or more. This is why preserving the condition of any old coin you find is critical—avoid cleaning them at all costs!
Professional grading services like PCGS or NGC are the final word on these designations. However, before spending the money on grading fees, you can use CoinKnow to get an initial estimate of your coin’s grade. If the app suggests your coin is in “About Uncirculated” or higher, it might be worth the investment to have it certified.
What Makes the 1940 Nickel Worth Thousands?
You might see headlines about 1940 nickels selling for $3,000 to $7,000. These are not your average coins. To reach these price levels, the nickel must be in nearly perfect condition (MS67 or higher) and possess the Proof-like luster often seen on early strikes. For the 1940 Reverse of 1938, the rarity combined with a high grade creates a perfect storm for investors.
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Toning can also add value. Some 1940 nickels develop beautiful “rainbow” oxidation over decades of storage in original mint sets or paper rolls. Collectors pay a premium for visually stunning coins that have survived the last 80 years without scratches or “bag marks” (the tiny nicks caused by coins hitting each other in mint bags).
Auction records show that a 1940-S Reverse of 1938 in MS67 condition once sold for over $3,200. While most of us won’t find that in a jar of pennies, knowing what to look for ensures you don’t spend a potential fortune on a pack of gum. Always double-check the back of any pre-1960 nickel you encounter.
| Grade | 1940-P Price Estimate | 1940-S Price Estimate |
|---|---|---|
| MS63 | $10 | $25 |
| MS65 | $35 | $120 |
| MS66++ FS | $600+ | $2,500+ |
FAQs About the 1940 Jefferson Nickel
Q: Why is it called “Reverse of 1938” if the coin is dated 1940?
A: In 1939 and 1940, the US Mint was updating the design dies for the Jefferson Nickel. Some older dies (hubs) from the 1938 production were still being used or were mixed in with the new 1940 dies. This created a “mule” where the front (obverse) has the 1940 date, but the back (reverse) features the slightly different 1938 architecture details.
Q: Is every 1940 nickel made of silver?
A: No. Standard Jefferson Nickels from 1940 are made of 75% copper and 25% nickel. “War Nickels,” which contain 35% silver, were only produced between 1942 and 1945. You can tell a War Nickel by the large mint mark (P, D, or S) located directly above the dome of Monticello.
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Q: Can I find a 1940 Reverse of 1938 in my pocket change?
A: It is possible, but very rare. Most nickels from 1940 have been pulled from circulation by collectors over the years. However, people still find them in “estate hauls” or old jars of coins. If you find one, it will likely be in “Good” or “Very Good” condition, worth about 10 to 50 cents, unless it is the rare variety.
Q: How do I know if my coin is “Full Steps”?
A: To qualify for the Full Steps (FS) designation, the five or six horizontal lines representing the steps of Monticello must be complete and uninterrupted. If there are any scuff marks or “hits” that break a line, the coin cannot be graded as Full Steps. This is extremely hard to find on the Reverse of 1938 variety due to the softer design.
Q: Where is the best place to sell my 1940 Jefferson Nickel?
A: For common 1940 nickels, a local coin shop is your best bet. If you believe you have a high-grade 1940 Reverse of 1938 or a Full Steps coin, you should consider selling through a major auction house like Heritage Auctions or Stacks Bowers after getting the coin professionally graded.