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The 1981-S Type 2 Lincoln Penny is worth anywhere from $5 in standard proof condition to over $1,000 for high-grade specimens. While most pennies in your pocket change are only worth face value, this specific “Clear S” variety is a prize that many collectors actively hunt for in vintage proof sets.
| Condition / Grade | Estimated Value (USD) |
|---|---|
| PR65 Red (Type 1) | $3 – $5 |
| PR65 Red (Type 2 – Clear S) | $15 – $25 |
| PR69 Deep Cameo (Type 2) | $50 – $120 |
| PR70 Deep Cameo (High Grade) | $1,000+ |
Understanding the Basics of the 1981-S Lincoln Penny
If you’ve recently inherited a coin collection or found an old proof set in the attic, you might be looking at a significant rarity. In 1981, the San Francisco Mint produced two distinct versions of the proof Lincoln Cent. These are known as the Type 1 and the Type 2. While the Type 1 is common, the Type 2 is the “holy grail” for collectors of modern copper-plated cents. Using a top coin identifier app can help you zoom in on the mint mark to see which version you have.
The distinction lies entirely in the “S” mint mark. During 1981, the minting hub began to wear out, resulting in a “Filled S” (Type 1). Later in the year, a new mint mark punch was introduced, creating a “Clear S” (Type 2). Because the Type 2 was introduced late in the production cycle, significantly fewer were made. If you are examining your coins, downloading an app like CoinKnow can provide high-resolution references to ensure you don’t mistake a blurry Type 1 for a sharp Type 2.
The 1981-S Type 2 Lincoln Penny value is driven by this scarcity. Collectors want the “Clear S” to complete their sets, and they are willing to pay a premium for it. Unlike coins found in jars of change, these are typically found in US Mint-issued plastic cases. If your penny is loose and scratched, it is likely a regular business strike from Philadelphia or Denver, which does not carry the same premium as the San Francisco proof.
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How to Identify the Type 2 Clear S Mint Mark
Identifying the 1981-S Type 2 requires a keen eye and usually a 10x magnifying glass. The Type 1 Mint Mark, also known as the “Sandalwood S,” looks like a blob. The loops of the “S” are filled with extra metal, and the overall shape is rounded and indistinct. It was the result of a tired, worn-out punch that had been used for several years.
In contrast, the Type 2 Mint Mark is distinct and sharp. The centers of the upper and lower loops are clearly visible and free of debris. The bulbous ends of the “S” are also very well-defined. This “Clear S” variety is what drives the market price up. Many beginners find it helpful to use CoinKnow to compare their coin side-by-side with authenticated professional photos of both types.
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The difference might seem small, but in the world of numismatics, these tiny details mean everything. If you find a “Clear S” in a proof set, you should handle it with extreme care. Even a single fingerprint can lower the grade and value of the coin. Always hold the coin by the edges and avoid touching the flat surfaces (the “fields”) of the penny.
| Feature | Type 1 (Filled S) | Type 2 (Clear S) |
|---|---|---|
| Visual Appearance | Blurred, Blob-like | Crisp, Well-defined |
| Internal Loops | Filled with metal | Open and prominent |
| Rarity | Common | Scarce |
Determining the 1981-S Type 2 Lincoln Penny Value
Pricing for these coins depends heavily on the “grade.” Professional graders use a 70-point scale. A 1981-S penny that looks perfect may be a PR69 (Proof 69), which is very common. However, a PR70 (a perfect coin) is exceptionally rare for the Type 2 variety. According to recent auction data, the 1981-S Type 2 Deep Cameo market price can reach four figures if it earns that elusive 70 grade from PCGS or NGC.
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For the average collector, most Type 2 pennies found in original proof sets will grade between PR67 and PR69. In these conditions, the value usually stays between $20 and $100. The term “Deep Cameo” (DCAM) is also vital—this refers to the contrast between the frosted portrait of Lincoln and the mirror-like background. If yours has a “mirror” finish that looks like black water, you have a winner.
Before selling, it is wise to check an updated 1981 Lincoln Penny value guide to see if the market has shifted. Prices for modern proof rarities can fluctuate based on supply and collector demand. Currently, the Type 2 remains one of the most sought-after modern pennies, alongside the 1979-S Type 2.
Where to Find and How to Sell Your 1981-S Penny
You won’t find a 1981-S Type 2 in your pocket change. These were never intended for circulation. Instead, they were sold by the US Mint in purple-packaged “1981 Proof Sets.” If you find a collection of these sets, you have a chance at finding the Type 2. Statistically, only about 15-20% of the sets produced in 1981 contained the “Clear S” variety across all denominations.
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When you are ready to sell, your first step should be verification. Tools like CoinKnow can help you determine if your coin is worth the $30-$50 fee required for professional grading. If your coin is indeed a Type 2 and looks flawless, sending it to a grading service is the only way to realize its full value. A raw (ungraded) Type 2 usually sells for much less than one encased in a slab with a certified grade.
Selling can be done through eBay, local coin shops, or specialty auction houses like Heritage Auctions if the coin is a high grade. Be wary of local shops that may offer “bulk” prices; ensure they recognize the coin is a Type 2 variety. Proper identification is the key to getting a fair price for your 1981-S Lincoln Penny.
| Sales Channel | Best For… | Pros/Cons |
|---|---|---|
| eBay | Raw or Low Grade | High fees, high visibility |
| Coin Shops | Quick Cash | Usually 50-70% of retail |
| Heritage/Stacks | PR70 Grade Coins | Maximum price, slow process |
Common Mistakes When Identifying Proof Pennies
One common error beginners make is confusing a “Proof” coin with a shiny “Uncirculated” coin. A proof coin is struck at least twice on specially polished blanks to give it a mirror-like finish. If your 1981 penny was found in a jar and has an “S” mint mark, but is scratched or dull, it is likely a “circulated proof.” This happens when someone breaks open a proof set and spends the coins as regular money.
Even if it is a Type 2, a circulated 1981-S penny loses most of its value. Collectors of these modern rarities demand perfection. Another mistake is misinterpreting the “S” mint mark without proper lighting. Always look at the mint mark from several angles. Sometimes a tiny speck of dust or a minor scratch can make a Type 1 look like a Type 2.
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Using CoinKnow can mitigate these errors by providing a “checklist” of what to look for. For the 1981-S, specifically look at the ends of the “S.” In Type 2, they have clear, bulbous shapes that do not touch the rest of the letter. If the ends seem to melt back into the body of the “S,” you are likely looking at a Type 1.
Conclusion: Is the 1981-S Type 2 Worth Keeping?
Absolutely. The 1981-S Type 2 Lincoln Penny is a staple of modern American coin collecting. While it may not buy you a new car (unless it’s a perfect PR70), it is a fantastic example of how a small change in the mint’s manufacturing process can create a lasting legacy for collectors. Whether you found it in an old box of sets or purchased it at a show, it represents a unique era in the history of the San Francisco Mint.
Always keep your proof pennies in their original protective holders. If you must move them, use PVC-free plastic flips. Oxidation is the enemy of copper, and even a 1981 penny can “turn” or develop spots if exposed to humidity. With the right care and identification, your 1981-S Type 2 can be a centerpiece of your collection or a profitable sale in the future.
FAQ
Q: How many 1981-S Type 2 Pennies were made?
A: While the exact mintage isn’t known, it is estimated that about 600,000 to 1,000,000 Type 2 sets were produced across all denominations, making the penny significantly rarer than the Type 1 version.
Your Old Coin Could Be Valuable!
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Q: Can I find a 1981-S Type 2 in my change?
A: It is extremely unlikely. These were only issued in Proof Sets. If one did end up in change, it would be heavily worn and worth very little compared to a preserved proof specimen.
Q: What is the highest price ever paid for a 1981-S Type 2 Penny?
A: In high grades like PR70 Deep Cameo, these coins have sold for over $1,500 at major auctions. Most collectors, however, will find specimens in the $20 to $50 range.
Q: Does CoinKnow tell me the grade of my coin?
A: CoinKnow helps you identify the variety (Type 1 vs Type 2) and provides market estimates, but a final numeric grade (like PR69) requires a physical inspection by a professional service like PCGS.