Collectors Corner^SM: The Collectibles Marketplace

The Jefferson Nickel series launched in 1938 and turns 85 years old in 2023. Courtesy of PCGS TrueView. Click image to enlarge.

No, we’re not talking about the popular 1970s sitcom The Jeffersons, one of many spinoff television hits from Norman Lear’s CBS series All in the Family. We are about to review the major anniversary of another kind of series – one that hasn’t necessarily produced as many laughs but certainly has a fan base all its own. The Jefferson Nickel has been celebrating a major milestone in 2023… Even with the realization that the Liberty and Buffalo Nickels of the late 19th and early 20th centuries exist, it seems like the Jefferson Nickel has been around nearly forever. Nearly is the operative adverb, for it was 85 years ago that the Jefferson Nickel debuted.

It would be easy for the Jefferson Nickel to feel somewhat underappreciated – had the coin any feelings to express, of course. And this would be understandable because the series is frequently overshadowed by contemporary counterparts with far more stage time, including the Lincoln Cent and Washington Quarter. Perhaps Jefferson Nickels find consolation in knowing they aren’t alone on quieter sidelines (hello, Roosevelt Dime), but, like the modern ten-cent series with a surprising number of headline-worthy highlights, the Jeffersons offer a dynamic collector experience for those who embark on collecting them.

For starters, the Jefferson Nickel holds the distinction of being the only series of its longevity whose regular-strike issues can all still be found in circulation, given one spends the necessary amount of time (and is blessed with enough luck) ardently searching through rolls. Even the 35% silver wartime issues from 1942 through 1945 can still be found on occasion in circulation; this is perhaps because relatively few people in the general public know that these coins contain silver and thus don’t pull them from their pocket change when they appear there.

Images of the original Jefferson Nickel design by Felix Schlag showing Monticello in three-quarter view and modernistic inscription fonts. Used with written permission from FelixSchlag.com. Click image to enlarge.

To be sure, ordinary circulation finds of heavily worn Jefferson Nickels from the late 1930s, 1940s, and 1950s may not wind up in the prize-winning collections of PCGS Set Registry members who usually seek higher-end pieces for their sets. But the series offers multitudes of trophies for those wanting a true challenge in terms of numismatic scarceness and multi-figure value.

We couldn’t forget the widely known 1939-D and 1950-D key dates, which are sufficiently scarce and valuable enough to rank high on the lists of any pocket-change searchers. Yet these aren’t necessarily the coins that diehard Jefferson enthusiasts find difficult. Rather, some may be willing to sacrifice their eye tooth for nice Full Steps (FS) examples of scarce regular issues, including many from the 1950s, 1960s, 1970s, and even later. And we can’t leave off the many rare overmintmarks and other major varieties that Jefferson Nickel devotees have been chasing for years.

A Sleeping Giant Awakens?

For better or worse, the Jefferson Nickel has long been dubbed a “sleeper” by market analysts who for decades now have declared the series a worthy collectible that simply has not gained much market traction despite offering some tantalizing features. There was hardly even a blip of sustaining marketplace buzz for the coin upon the issuance of the Westward Journey Nickels from 2004 through 2005.

Jefferson Nickel enthusiasts may rightfully wonder if their favorite series will ever rise to the prominence of the beloved Lincoln Cent or headline-stirring Washington Quarter, the latter with its frequent reverse designs that pique national interest. However, the fact that this series hardly claims the number of dedicated collectors that other series may draw only serves to behoove the collector, who has the opportunity to build a wonderful set of coins from one of the nation’s most enduring series for relatively affordable prices.

Perhaps the 85th anniversary of the Jefferson Nickel will have served as a sufficient catalyst for a surge of new attention around this deserving coin. But whether it does or not is of little consequence to the passionate Jefferson Nickel aficionado, who doesn’t need commemorative interludes or even major milestone anniversaries to enjoy collecting this most delightful modern series.

Bringing the Jefferson Nickel to Life

By the late 1930s, the Buffalo Nickel was ticking past a quarter century of existence, having been struck since 1913. United States Mint officials had become weary in attempting to render the Buffalo Nickel design, which did not always strike up well and was taxing on dies. Therefore in 1938, when the Buffalo Nickel had been in production for 25 years and was eligible for redesign by decree of the Secretary of the Treasury rather than an act of Congress, the U.S. Mint opened a design contest to find a suitable replacement in January 1938. The contest required an obverse portrait of President Thomas Jefferson and a reverse depiction of Jefferson’s Virginia home called Monticello.

The contest prize of $1,000 and an April 15 deadline spurred hundreds of entries, with 390 making it before judges. German-born sculptor Felix Schlag won the contest with his bust of Jefferson closely mirroring a bust of the third president by Jean-Antoine Houdon, whose George Washington bust was parlayed into a design of the first president on the quarter beginning in 1932.

Schlag’s design of a three-quarter view of Monticello was overhauled by mint officials who loathed the modern style of font used for the reverse. A tree appearing next to Monticello also caused artistic unrest, with some officials believing the tree – considered by many to be a palm – would not have been grown by Jefferson. A request for Schlag to redesign the coin accordingly led to his submission of an elevational view of Monticello, which eventually made it into production in the widely familiar form seen today after Secretary of the Treasury Henry Morgenthau gave his approval.

Felix Schlag is seen holding models of his original Jefferson Nickel design. Image from the OT Thompson Collection and used with permission from FelixSchlag.com. Click image to enlarge.

Art historian Cornelius Vermeule, whose numismatic observations have included declarations of the Walking Liberty Half Dollar being among the most beautiful coins ever minted, evidently preferred Schlag’s original iteration of Monticello. “Official taste eliminated this interesting, even exciting, view, and substituted the mausoleum of Roman profile and blurred forms that masquerades as the building on the finished coin,” he said. “On the trial reverse, the name ‘Monticello’ seemed scarcely necessary and was therefore, logically, omitted. On the coin, as issued, it seems essential lest one think the building portrayed is the vault at Fort Knox, a state archives building, or a public library somewhere.”

The Long Run

The Jefferson Nickel entered production at the Philadelphia, Denver, and San Francisco Mints on October 3, 1938, and officially began circulation on November 15 of that year. The coin was widely hoarded – so much so that Jefferson Nickels were largely absent from circulation until at least 1940. During these early years, some minor changes were made to the coin, including sharpening of the steps on Monticello that resulted in the Reverse of 1938 and Reverse of 1940 types that keep collectors busily looking for these variations on the circulation-strike and proof versions of 1939 Jefferson Nickels.

Differences between the Reverse of 1938 and Reverse of 1940 are chiefly seen in the step detail on Monticello. Courtesy of PCGS. Click image to enlarge.

By 1939, World War II was already brewing overseas, eventually wrapping the United States into the international conflict on a formal basis after the attack on Pearl Harbor in December 1941. With the U.S. at war and many supplies scarce for the nation’s troops, the U.S. Mint endeavored to save nickel for the war effort. Congress authorized the U.S. Mint to make the necessary compositional changes, with an alloy of 56% copper, 35% silver, and 9% manganese becoming the most feasible solution. The so-called “war” nickels started rolling out in October 1942, and these coins carry a large mintmark over the dome of Monticello on the reverse. This led to the appearance of the first “P” mintmark from the Philadelphia Mint on any United States coin, with the Denver and San Francisco Mints also sporting their respective “D” and “S” mintmarks on the coins.

The three faces of Thomas Jefferson over the course of the 2004 through 2006 issues. Courtesy of PCGS TrueView. Click image to enlarge.

The war was over in 1945, and the following year the usual 75% copper, 25% nickel alloy had returned to the Jefferson Nickel. The post-war economy saw its ups and downs; a recession in 1950 led the mints to strike fewer nickels that year, with the Philadelphia Mint producing fewer than 10 million, Denver striking just 2,630,030, and San Francisco making none. The scarcity of the 1950-D Jefferson Nickel fueled many to hoard any available examples of the coin in the months after its issuance, and the coin is arguably more common in uncirculated condition than it is in circulated grades.

The 1942-P Jefferson five-cent coin made with a 35% silver alloy was the first U.S. coin to carry a “P” mintmark from the Philadelphia Mint. Courtesy of PCGS TrueView. Click image to enlarge.

In 1966, designer Felix Schlag’s initials, “FS,” were added to the obverse directly under the bust of Jefferson. This constituted among the very few changes the coin saw over the course of its run in the 20th century, with a few major overhauls to come just after the turn of the 21st century.

The Jefferson Nickel series launched in 1938 and turns 85 years old in 2023. Courtesy of PCGS TrueView. Click image to enlarge.

The Jefferson Nickel Today

The year 2003 marked the 200th anniversary of the Louisiana Purchase, for which President Jefferson oversaw the acquisition of nearly 830,000 square miles of land west of the Mississippi River from the French First Republic for $15 million in 1803. The land was surveyed by Captain Meriwether Lewis and Second Lieutenant William Clark from 1804 through 1805 during an exploratory tour known as the Lewis and Clark Expedition.

The bicentennial of the expedition was commemorated in 2004 and 2005, aptly spawning a circulating series of four Jefferson Nickels representing symbolic scenes from the journey. The four commemorative reverse designs include the 2004 Peace Medal, 2004 Keel Boat, 2005 American Bison, and 2005 Western Waters issues. The commemorative run concluded in 2006 with its Return to Monticello.

Closeup of the 1939 Doubled Monticello details. Courtesy of PCGS. Click image to enlarge.

The Westward Journey Nickels depict various scenes and symbols honoring the Lewis & Clark Expedition. Courtesy of PCGS TrueView. Click image to enlarge.

Over the course of this time, three different obverse portraits of Jefferson were seen, including the original Schlag obverse in 2004, and a closeup likeness of Jefferson by designer Joe Fitzgerald in 2005. The current, forward-looking obverse of Jefferson was designed by Jamie Franki and was paired with a slightly retooled version of Schlag’s Monticello on the reverse.

Collecting Jefferson Nickels

From the standpoint of collecting the series by date and mintmark, the biggest challenges come with the 1939-D and 1950-D issues, coins that are technically keys but are both about as available as and priced more like semi-key coins. Acquiring any of the coins in run-of-the-mill proof or uncirculated grades is neither very difficult nor costly, as compared to other popular coins. It can probably be best characterized as one of the most affordable of the long-running 20th-century series to obtain.

So, where’s the challenge in collecting the Jefferson Nickel? That comes in the varieties and Full Steps examples, which become extraordinarily expensive.

Along with the various Reverse of 1938 and Reverse of 1940 designs from 1939, there is also the 1939 Doubled Monticello, a popular doubled die that fetches around $120 in XF40 and $1,100 in MS64. Two more doubled dies came in the wartime years, with the 1943-P Doubled Eye and 1945-P Doubled Die Reverse each fetching about $250 in MS64. Meanwhile, the 1943/2-P is an interesting wartime overdate that takes $650 in MS64. The post-war years saw a trio of significant overmintmarks with the 1949-D/S, 1954-S/D, and 1955 D/S, with the first taking $315 in MS64 and the latter two each garnering around $120 apiece in the same grade.

A closeup of Full Steps details on the Jefferson Nickel. Courtesy of PCGS TrueView. Click image to enlarge.

Details attributing the 1943-P Doubled Eye variety. Courtesy of PCGS. Click image to enlarge.

A closeup of the 1943/2-P overdate. Courtesy of PCGS. Click image to enlarge.

A few major overmintmarks are known among Jefferson Nickels hailing from the years after World War II, with the 1954-S/D, seen here in closeup, among them. Courtesy of PCGS. Click image to enlarge.

A closeup of the 1971 No-S Proof variety. Courtesy of PCGS. Click image to enlarge.

Closeup of the 2005-D Speared Bison shows a major reverse die crack. Courtesy of PCGS. Click image to enlarge.

The unusual 1971 No-S Proof – the only Jefferson Nickel not to contain its intended mintmark – offers several hundred specimens and can be had for about $1,000 in PR67. The 2005-D Speared Bison – the result of a prominent die crack appearing on the reverse – caused a stir when it surfaced and now goes for about $425 in MS65.

Pretty much all business strikes in the series become conditional rarities – and in some cases conditional series keys – with the Full Steps (FS) designation. According to PCGS grading guidelines, the FS designation is bestowed to Jefferson Nickels that grade MS60 or better and show a full five or six steps in the portrait of Monticello (Thomas Jefferson’s home) on the reverse; to qualify for this designation, a coin must also have no major disturbances, including cuts and marks, to the separation of the steps.

The only 1969-D Jefferson Nickel graded PCGS MS65FS hammered for an astonishing $33,600 in an August 2021 Stack’s Bowers Galleries offering. Courtesy of Stack’s Bowers Galleries. Click image to enlarge.

Those who think finding Jefferson Nickels with a complete strike and the requisite five or six undisturbed steps on Monticello necessary for the coveted FS designation is easy might want to revisit their consideration. Many issues offer mere handfuls of Full Steps examples, while some, such as the 1969-D, yield merely one – one(!) – FS example for collectors. As expected, such coins often sell for four and five figures.

This is not to suggest that all Full Steps Jefferson Nickels are costly rarities. Most dates offer FS specimens in the lower and middle Mint State grade ranges for two- or three-digit prices and are relatively affordable. Collectors who want to build beautiful PCGS Registry Sets of Full Steps Jefferson Nickels can cobble together a great many of the necessary coins without spending huge sums of money, provided examples grading in the MS66 to MS67 grades or higher are avoided. While this may not necessarily result in building an award-winning PCGS Registry Set, it would be one that a collector could nonetheless be proud of.

This 1958 Jefferson Nickel, graded MS64FS, retails for about $30, offering the desired Full Steps details so many collectors love without the pricing formidability that keeps many series enthusiasts from pursuing these well-struck coins in higher Mint State grades. Courtesy of PCGS TrueView. Click image to enlarge.

What this all boils down to is this: the Jefferson Nickel is a wonderfully versatile series for collectors of all levels, offering something for just about everyone. The PCGS Set Registry reflects this with a bevy of Jefferson Nickel sets for collectors spanning the gamut of budget, discipline, and expertise. With 85 years of regular issues, varieties, and other novelties for collectors to pursue, the Jefferson Nickel seems primed to see renewed interest from collectors.

As the Jefferson Nickel blows out 85 candles, it's time to give this meritorious series the best numismatic gift any coin can receive: an honorable spot in your collection!