1981-S Type 2 Lincoln Penny Value: History and Price Guide
The 1981-S Type 2 Lincoln Penny is worth anywhere from $5 in standard Proof condition to over $3,500 for the highest-graded specimens. While most pennies in your pocket are worth just one cent, this specific variety from the San Fransisco Mint is a prized trophy for many collectors.
| Grade / Condition | Estimated Value (USD) |
|---|---|
| PR-65 Deep Cameo (Type 1) | $3 – $7 |
| PR-65 Deep Cameo (Type 2) | $15 – $25 |
| PR-70 Ultra Cameo (Type 2) | $500 – $3,500+ |
Identifying the 1981-S Type 2 Lincoln Penny
Finding a rare coin in a collection or an old jar is an exciting moment for any American. If you have stumbled upon a shiny 1981 penny with an “S” mint mark, you might be holding a “Type 2” variety. Before you get too excited, it is important to use a free coin identifier app to confirm the details. The “S” stands for the San Francisco Mint, which exclusively produced Proof coins for collectors that year.
The 1981-S Type 2 is defined by the appearance of the mint mark. During 1981, the Mint replaced a worn-out mint mark punch (Type 1) with a new, clearer one (Type 2). The Type 1 “S” looks blob-like, with the loops of the letter filled in or “mushy.”
The Type 2 “S,” however, is much more distinct. It has clear bulbous ends (serifs) and a well-defined paths through the center of the letter. If you are unsure which one you have, the CoinKnow app can help you zoom in and compare your coin against high-resolution archive images.
The Difference Between Type 1 and Type 2 Mint Marks
The transition from Type 1 to Type 2 occurred late in 1981. Because the Type 2 punch was introduced toward the end of the production cycle, it is significantly rarer than the Type 1. Most 1981-S proof sets contain the Type 1 version, making the Type 2 a “key” variety for modern Lincoln Cent enthusiasts.
To see the difference, you need a magnifying glass or a jeweler’s loupe. On the Type 1, the “S” looks like a rounded rectangle with very little internal detail. On the Type 2, the “S” is crisp, and the field (the flat background of the coin) is visible through the loops of the letter.
Because of this rarity, the 1981-S Type 2 Lincoln Penny value is substantially higher than its common counterpart. Collectors are often willing to pay a premium to complete their “Proof Variety” sets.
| Feature | Type 1 (Filled S) | Type 2 (Clear S) |
|---|---|---|
| Clarity | Indistinct, “blobby” | Sharp and clear |
| Serifs | Disappear into the loops | Flat and bulbous ends |
| Scarcity | Common | Rare |
Grading and Condition Impacts Value
When it comes to the 1981-S Type 2, condition is everything. Since these are Proof coins, they were never meant for general circulation. They were sold in plastic cases to collectors. However, if a coin is removed from its case or handled with bare fingers, natural oils can cause “toning” or spotting, which lowers the grade.
Professional grading services like PCGS or NGC use a 70-point scale. A “PR-70” is a perfect coin with no visible flaws under 5x magnification. For this specific variety, a PR-70 can fetch thousands of dollars, whereas a PR-63 (which might have small scratches or haze) might only be worth $10.
If you are just starting out, using CoinKnow allows you to snap a photo and get a rough idea of the grade before you spend money on professional certification fees. Understanding the market worth of a 1981 penny helps you decide if it is worth the $30-$50 cost to have it officially graded.
1981-S Type 2 Market Pricing and Rare Sales
The market for modern proof varieties is very active. While a mid-grade Type 2 is affordable for most people, the “Registry Set” collectors—those who compete to own the highest-graded coins in existence—drive the prices of perfect specimens into the stratosphere.
In recent years, auction houses have seen 1981-S Type 2 pennies in PR-70 Deep Cameo condition sell for between $3,000 and $5,000. These coins must have a “Deep Cameo” (DCAM) effect, where the frosted portrait of Lincoln contrasts sharply against a mirror-like background.
| Grade (Type 2) | Average Auction Price |
|---|---|
| Proof 67 DCAM | $35 – $50 |
| Proof 68 DCAM | $65 – $90 |
| Proof 69 DCAM | $150 – $250 |
| Proof 70 DCAM | $3,200+ |
Why the 1981 Lincoln Penny Is Historical
Beyond the “S” varieties, 1981 was a significant year for the Lincoln Cent for another reason. It was the last full year that the U.S. Mint produced pennies made of 95% copper. In mid-1982, the Mint switched to copper-plated zinc to save money. This makes 1981 pennies the last of the “solid copper” era.
While business-strike pennies (those without an “S” mark) from Philadelphia and Denver are generally only worth their copper melt value (about 2 to 3 cents), they are still popular with “hoarders” who believe the price of copper will rise.
The CoinKnow community often discusses the importance of the 1981 transition. When you find a 1981-S Type 2, you aren’t just looking at a mint error; you are looking at the final days of traditional American coining methods before the more modern, automated processes took over entirely.
Tips for New Coin Hunters
If you want to find a 1981-S Type 2, the best place to look is in old Proof Sets. Often, these sets are sold at estate sales or flea markets for $5 to $10. If you can spot a Type 2 through the plastic packaging, you can make an instant profit.
Always look for “Clean” coins. A coin that has been cleaned with chemicals or cloth is considered “damaged” by collectors and loses 70-90% of its value. If you find a rare penny, handle it only by the edges and never touch the face of the coin.
Keep an eye out for other 1981 errors as well, such as double dies or off-center strikes. While the Type 2 “S” is the most famous variety, error collectors are always looking for “mistakes” that happened during the minting process.
FAQ
Q: How can I tell for sure if my 1981-S penny is a Type 2?
A: You need to look at the “S” mint mark. The Type 2 has very clear, rounded ends on the “S,” and the loops are wide open. The Type 1 looks like a filled-in “blob” where the “S” is barely recognizable.
Q: Is a 1981 penny without an “S” worth anything?
A: Pennies minted in Philadelphia (no mint mark) or Denver (“D” mint mark) are generally worth only 1 to 3 cents unless they represent a significant error or are in perfect uncirculated condition.
Q: Where is the best place to sell my 1981-S Type 2?
A: For lower-grade coins ($15-$50), eBay or local coin shops are best. For high-grade PR-69 or PR-70 coins worth hundreds or thousands, you should contact a major auction house like Heritage Auctions or GreatCollections.
Q: Do all 1981 Proof sets have the Type 2 penny?
A: No. In fact, most 1981 Proof sets contain the common Type 1 penny. The Type 2 was introduced late in the year, so it is found in a much smaller percentage of the total sets produced.
