By January 17, 2012 10 Comments Read More →

1944-D Steel Cent: Rare, Off-Metal Cent Sold at Recent FUN has Interesting Story

by Louis Golino for CoinWeek

Steve Estes (http://www.steveestes.com) is a Portland, Oregon dealer who has in been in business since 1963, and who specializes in classic American coins, especially Morgan and Peace dollars. Last year I interviewed him for CoinWeek about his interest in coins and his expertise on silver dollars .

1944 D steel cent thumb 1944 D Steel Cent: Rare, Off Metal Cent Sold at Recent FUN has Interesting StoryAn Oregon woman contacted Mr. Estes a couple of months ago about a 1944-D steel cent she had inherited. She explained that she had shown the coin to another local dealer who said the coin was probably not real and who offered to buy it for a token amount as a curiosity. She believed the coin was real and was frustrated that she could not find anyone who would take her seriously.

When she spoke to Mr. Estes, he asked if a magnet attracted the coin, and she said it did. This indicated the coin was made of steel rather than copper like most 1944-D cents.

The woman then met with Mr. Estes, who could immediately tell the coin was real based on his decades of experience as a coin dealer and expert numismatist. The woman shared additional information and documentation about the coin with Mr. Estes.

Mr. Estes sent the coin to NGC for grading, and it came back as an MS61. The coin was submitted for auction by Heritage Auctions of Dallas, Texas, the third largest auction in the world. It was sold at the Heritage Platinum event held at the recent FUN show in Florida. The coin was sold for $58,201.50 on January 4 to an online bidder.

1944 D steel cent 1944 D Steel Cent: Rare, Off Metal Cent Sold at Recent FUN has Interesting StoryPrior to the sale of this coin, the most recent sales (both by Heritage) of 1944-D steel cents were earlier in 2011. In July an AU example garnered $23,000, and an AU-53 coin sold last January for $37,375.

According to a February 12, 1966 newspaper article in the San Mateo Times, in 1966 Robert Collins, a then-23 year old man from California discovered what at the time was the second-known 1944-D steel cent.

According to Heritage Auctions, “It was his habit to swap a regular cent for a steel cent whenever he found one in change. He brought the coin to two dealers, who found no reason to doubt it, and from there it went to Walter Breen, the most prominent authenticator of the time, who pronounced it genuine.”

In 1943 steel was used to make pennies, instead of copper, because copper was needed for the U.S. war effort. Because copper was considered a strategic metal during World War II, there was an effort to find an alternative metal to produce pennies.

According to Park Avenue Numismatics’ online Encyclopedia of U.S. coins , this effort resulted in the use of “low-carbon steel coated with zinc, which quickly corroded; cents of this stuff were coined in 1943, and in 1944 some more accidentally coined on leftover steel banks, even as some 1943 cents had been coined on leftover 1942 bronze blanks. Fewer than a dozen of either have been authenticated, though ten-thousands of forgeries exist of the 1943 bronze.”

The leftover steel planchets that were used to make a small number of 1944-D cents thus created one of the great rarities in modern U.S. coinage., a coin which Heritage describes as having rarity and appeal that remain timeless.

About 10 examples of this coin are believed to exist. PCGS puts the number at seven and has only certified one example, an MS 62. NGC’s web site  says it has graded one MS62, and one MS63. The coin which Mr. Estes’ client brought in that received an MS61 must not have yet been added to NGC’s population report.

NGC’s Coin Explorer says that “In 1943, with copper urgently needed for combat-related purposes, the Mint made Lincoln cents from zinc-coated steel. The substitute proved unsatisfactory, and from 1944 through 1946 the Mint instead used the brass alloy first tried in 1942; this lacked the small percentage of tin employed before and after the war. At least a portion of this brass was obtained from salvaged cartridge cases, which did the job nicely. The one-year experiment left a lasting legacy when the Mint inadvertently struck minuscule numbers of 1943 cents in bronze and a slightly greater number of 1944 cents in steel. Both are quite rare and valuable. Many years ago, a false rumor spread around the country that Henry Ford would trade a new car in exchange for the fabled 1943 copper!”

Heritage has sold several such coins over the years. They range substantially in grade and have sold for sums that vary from $7700 for an AU coin in 1996 to $115,000 for the finest quality example, an MS63 that sold at auction in 2007.

According to the Heritage Auctions catalog description for the MS61 example that sold during the FUN action, “This example, despite being pulled from change, was awarded a Mint State grade in its recent certification by NGC. Several shallow, almost parallel diagonal abrasions are visible only at certain angles to the light, while a narrow streak of gray paler than the rest of the coin’s medium-steel hue is visible on the photograph of the coin printed in the newspaper. A number of smallish oxidation spots are also visible in the vintage photograph; these appear not to have progressed since then. The weight is listed at 2.9 grams, a touch heavier than some other 1944-D steel cents but within tolerance. A great coin with a great story behind it — and the documentation to prove it.”

The moral of this story is two-fold. First, there are great, rare coins that have yet to enter the market. Second, it is always highly advisable to seek the counsel of an experienced and knowledgeable dealer like Mr. Estes if one has a coin that could potentially be very rare and valuable. As always, do your research and find a dealer who knows the type of coin you think you have, and look for someone like Mr. Estes who has a reputation for honesty and integrity.

A dealer does not stay in business for almost 50 years unless he or she treats their customers well. Word eventually gets around if a dealer sells overgraded coins, or takes advantage of less knowledgeable sellers. If you are fortunate enough to live near an expert dealer, try to get to know them and you will learn a lot of useful information that will help you get more out of the hobby of kings, or as others put it, the world’s greatest hobby.

The information about the coin owned by Mr. Estes’ client appears here with the permission of Steve and Debbi Estes.

golino portrait thumb 1944 D Steel Cent: Rare, Off Metal Cent Sold at Recent FUN has Interesting StoryLouis Golino is a coin collector and numismatic writer, whose articles on coins have appeared in Coin World, Numismatic News, and a number of different coin web sites. His column for CoinWeek, “The Coin Analyst,” covers U.S. and world coins and precious metals. He collects U.S. and European coins and is a member of the ANA, PCGS, NGC, and CAC. He has also worked for the U.S. Library of Congress and has been a syndicated columnist and news analyst on international affairs for a wide variety of newspapers and web sites.

About the Author:

Louis Golino is a numismatic journalist and writer specializing in modern coin issues. He has been writing a weekly column for Coin Week since May 2011 called "The Coin Analyst," which focuses primarily on modern U.S. and world coins and developments at major world mints, and is also a contributor to two magazines, American Hard Assets and the Numismatist, the American Numismatic Association's monthly publication. His work has also appeared in Coin World, Numismatic News, and various coin web sites. He collects classic and modern U.S. coins and modern world coins from a number of different countries. He first joined the ANA in the 1970's. He has also worked for the Congressional Research Service of the Library of Congress and has been a syndicated columnist and news analyst on international affairs for a wide variety of publications. He has been writing professionally since the early 1980's.

10 Comments on "1944-D Steel Cent: Rare, Off-Metal Cent Sold at Recent FUN has Interesting Story"

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  1. JMH Coincollector says:

    Thanks for the great “back” story about the 1944-D Zinc. It was my first “major” coin purchase. Indeed I submitted the bid online,and my family and I were “high-fiving” when we won!

    • Paul Wesolowski says:

      I just submitted to Great Collections a 1943 steel penny. Underneith the 943 there are the number 4. Between the date and the mint mark (s) is another 4. Very rare I thought.Maybe you might be interested?

  2. Louis Golino says:

    Thanks, JMH. Glad you enjoyed it.

  3. kenneth caldwell says:

    i came across a what i thought was just a token but after intensive research,it comes to be a 1785 bar cent,please advise me how to get it authenicated and graded.thanks kenneth.

  4. kenneth caldwell says:

    if anyone can help me, please send me an e mail thanks,the penny does stick to a magnet, k.c. ala.

  5. J Buzzno says:

    got a 1944 penny and need to know how to find out if it is real or what

  6. Patricia says:

    My Daughter Discovered A 1944 Steel Penny With No Stamp Letter On It. We Searched And Found It To Be Valuable. Advise Us Please. It Does Cling To A Magnet

  7. Marlene says:

    My mother had recently passed away and she was a collector of wheat pennies, I have over 1000, I came across a 1944 penny that appears to be steel and copper mix, it does not look copper or steel it appears like both, not sure if anyone had heard of this?
    I tried the magnet but it does not stick and the weight it slightly different then a all copper penny, any suggestions?

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