1881 5c PR DCAM

Key to Collecting: The 1881 Shield nickel is remarkable for its scarcity as a circulation strike. Such pieces are so elusive that for many years most collectors have simply opted to acquire the readily available Proofs. It has also been a popular sport to classify Proofs as “Mint State,” as the latter bring more money. The exact same thing is true for many of the dates in the nickel three-cent series of this decade. Before you pay a sharp premium for a coin described as Mint State, have an expert check it for you, although even the best of scholars are sometimes uncertain as to the attribution.

Characteristics and Appearance: Pieces offered as circulation strikes tend to closely resemble Proofs, which indeed they may really be. One die that was used to make circulation strikes (traces of repunching near the rim, below the date) is not known to have made Proofs; buying one of these might be insurance if you want a true circulation strike—but keep in mind that as research goes on, accepted “facts” are often discarded. As a prime example, many comments made years ago in Walter Breen’s Complete Encyclopedia of United States and Colonial Coins are now viewed as incorrect.

Mint records indicate that in January 1882, for circulation-strike nickels of 1881, seven obverse and nine reverse dies were destroyed.36

Mintage and Distribution Notes: On November 12, 1881, the Treasury Department’s holdings of nickel five-cent pieces reached a low point, and the secretary directed that production in quantity recommence. By that time, many silver coins had been absorbed, and most of the once-competitive silver half dimes had been redeemed and melted.

Absent this call in November, it is likely that there would have been a nominal coinage of circulation strikes, following the path of the 16,000 made for 1880. John Dannreuther notes that years ago a Mint State 1881 nickel was a great rarity, but that in the late 20th century Norm Pullen, a professional numismatist from Maine, came across a remarkable cache of about 50 pieces, all very choice.37

Characteristics and Appearance: Some have slight weakness in the horizontal shield stripes (not that most people would notice). Proofs are typically made from an overpolished obverse die, causing the stem on the highest inside berry at right to be incomplete. A deep mirror surface is the rule, although sometimes, there is a grainy non-Proof surface on the reverse near the 5 on various dates of the era. The same characteristic can be observed on certain Proof $3 gold coins of this time.

Peters and Mohon, drawing from Breen, state that one die (of two that were made) was used to make Proofs this year. The outline of the ball is incomplete near the first 8, among other characteristics. However, this die may have been used to make circulation strikes as well. Mint records indicate that in January 1882, for Proof nickels of 1881, two obverse and two reverse dies were destroyed.38