The 1940 Nickel Value Guide

Full Steps is a strike-quality designation — not a minting error — awarded by PCGS and NGC when a Jefferson nickel's reverse shows five or six complete, uninterrupted horizontal lines across the full width of Monticello's ground-level staircase. The steps are the shallowest relief element on the entire reverse die, making them the first feature to fail from worn dies, soft striking pressure, or inadequate planchet preparation.

In 1940, the U.S. Mint introduced an improved reverse hub that sharpened Monticello's step detail compared to earlier issues. Despite this, Full Steps coins remain uncommon — most 1940 nickels in Mint State show partial or flat steps. At MS65, a Full Steps designation roughly doubles retail value. At MS67 and MS68, the premium is exponential and reflects extreme rarity.

The 1940-D Full Steps is the crown jewel for this date. Despite Denver having the second-lowest business-strike mintage, the MS68 Full Steps is a trophy-level rarity. The Legend Rare Coin Auctions record of $21,738 in May 2018 (confirmed by PCGS CoinFacts and CoinValueChecker independently) stands as the highest price ever paid for any 1940 business-strike nickel. PCGS population data as of May 2025 shows only 11 Philadelphia coins certified at MS68 Full Steps; NGC has graded just 1 coin at MS68 6FS.

The 1940 Proof Reverse of 1938 is the rarest variety in the entire 1940 Jefferson Nickel series. When the U.S. Mint transitioned to the improved 1940-style reverse hub, a small number of 1940 proof coins were inadvertently struck using leftover 1938 reverse dies before quality control could intervene. The result is a proof coin with the standard 1940 obverse but an unmistakably softer, poorly defined reverse.

The visual difference is immediately apparent under examination. The Reverse of 1938 shows soft, wavy, indistinct steps on the Monticello staircase — exactly the quality problem the improved 1940 hub was designed to correct. The obverse retains full mirror fields and sharp Jefferson portrait of a standard 1940 proof. PCGS formally catalogs this variety under its own designation, PCGS #94177, with Fivaz-Stanton reference FS-901.

The auction record of $28,750 for a PCGS PR68 at Heritage Auctions on January 5, 2011 is directly confirmed by PCGS CoinFacts and independently documented by CoinValueChecker and CoinValueLookup — three independent sources. This is the highest price ever realized for any 1940 Jefferson Nickel in any category. Authentication by PCGS or NGC is essential for any suspected example.

The 1940-S/S RPM FS-501 is the most prominent and best-documented error variety for the entire 1940 Jefferson Nickel date. It was created during the era when San Francisco mint technicians individually hand-hammered the "S" mint mark punch into each working die. When the initial strike was misaligned, the worker corrected and re-struck the punch, leaving two overlapping "S" impressions — and therefore on every coin struck from that die.

The FS-501 variety shows a secondary "S" impression extending clearly south of the primary mark. Unlike flat die wear or bag marks, this secondary punch presents as a raised, three-dimensional feature with sharp edges. The Fivaz-Stanton designation FS-501 is formally cataloged in the Cherrypickers' Guide to Rare Die Varieties and recognized by both PCGS and NGC for attribution. This hand-punching method continued until approximately 1990 when the Mint began incorporating mint marks directly into master dies.

Circulated examples with clearly visible repunching trade for $5–$25. Uncirculated MS65 examples range from $75–$200, with Full Steps specimens reaching $350–$450 at peak. A CoinValueChecker-documented auction record of $450 for an MS66 specimen reflects the premium for the strongest, most visually dramatic FS-501 examples. Per CoinValueLookup, PCGS population shows only 13 known examples in MS66, making this a genuine condition rarity at the top of the grade range.

An off-center strike results when a blank planchet is not correctly seated between the dies at the moment of impact. The misaligned blank causes the dies to strike with the intended design center off-target, leaving one portion fully struck while the opposite side shows smooth, bare, unstruck planchet metal. These are genuine production errors that passed quality control and entered circulation on 1940 Jefferson Nickels.

Off-center 1940 nickels are most desirable when the shift is dramatic — 15% or more — and when the full date remains visible on the struck portion. Collectors can confirm the year from coins up to 40–50% off-center as long as the date falls within the struck area. The bare planchet zone should be completely smooth and featureless; the struck portion should show mint luster or wear consistent with the coin's overall grade. CoinTrackers specifically documents 1940 nickel off-center strikes as occurring at offsets up to 70%.

Values range from $20–$50 for minor 5–10% examples to $100–$300 or more for dramatic 25–50% strikes retaining the complete date. Authentication through PCGS or NGC is recommended for all examples claiming 20% or greater offset, as post-mint damage can superficially resemble an off-center strike to an untrained eye.

Cud errors and die breaks on 1940 Jefferson Nickels are caused by physical failure of the coinage die during production. As a die is used repeatedly, metal fatigue causes it to crack — most frequently near the rim where stress is highest. When a piece of die material breaks away or a crack grows large enough, the void in the die surface creates a raised mass of metal on every coin struck afterward using that die.

A true cud is a raised mass that connects to or replaces the rim — the chip was large enough to eliminate a section of design and rim detail simultaneously. Smaller die cracks produce raised lines crossing the coin's field without reaching the rim. Both types are visible to the naked eye and confirm a genuine die-failure event. The raised mass will be smooth on top (mirroring where the die surface was) with irregular edges where the die material broke away.

Minor die cracks appearing as thin raised lines across the fields or through lettering add $10–$50 in collector premium depending on visual prominence. True cuds — where a raised mass replaces a section of rim and nearby design — are worth $50–$100 or more for significant examples. CoinValueLookup documents cuds on 1940 Jefferson Nickels in the $50–$100 range from error coin specialists. TheFunTimesGuide independently confirms the $10–$50 premium for die crack anomalies on 1940 nickel surfaces.