The 1868 Shield Nickel represents an important early issue in the first nickel five-cent series produced by the United States Mint. As the third year of Shield Nickel production, the 1868 issue offers collectors several interesting varieties and error types that command premium values in today’s numismatic marketplace. This comprehensive guide examines the specifications, historical context, varieties, errors, and current market values of this significant 19th-century coin.
Historical Context and Specifications
The Shield Nickel series, designed by James B. Longacre, was introduced in 1866 as the first five-cent coin composed of copper-nickel rather than silver. By 1868, production had stabilized following initial design challenges, though mint officials continued to struggle with the hardness of the new alloy.
Technical Specifications:
- Composition: 75% copper, 25% nickel
- Weight: 5.00 grams (tolerance ±0.097 grams)
- Diameter: 20.5 mm (tolerance ±0.1 mm)
- Edge: Plain
- Thickness: 1.95 mm
- Designer: James B. Longacre
- Mint Mark Location: None (all produced in Philadelphia)
Mintage and Production
The 1868 Shield Nickel saw substantial production, reflecting the growing need for small-denomination coins in post-Civil War commerce. Official U.S. Mint records document a total mintage of 28,817,000 business strike coins. No proof coins were officially recorded for this year, though unofficial estimates suggest approximately 600 proof specimens may have been struck for collectors.
Production took place exclusively at the Philadelphia Mint, as was standard for the series until 1912. The relatively high mintage means that 1868 Shield Nickels remain reasonably available in circulated grades, though high-grade uncirculated examples represent a significant challenge for collectors.
Identifying Characteristics and Design Elements
Obverse Design: The obverse features a large shield with crossed arrows at the base and an olive branch hanging from each side. The shield displays vertical stripes and horizontal bands at the top. Above the shield is the motto “IN GOD WE TRUST,” while the date “1868” appears below.
Reverse Design: The reverse displays a large numeral “5” surrounded by 13 stars, enclosed within a circle of rays. The legend “UNITED STATES OF AMERICA” arches around the upper border, while “CENTS” appears at the bottom.
Diagnostic Points:
- The shield should have 13 vertical stripes representing the original colonies
- All 1868 Shield Nickels display the “With Rays” reverse design (unlike 1867 issues that transitioned mid-year)
- Proper striking results in clear horizontal lines in the upper shield, though these are often weak
Value Guide and Grading Standards
Values for 1868 Shield Nickels vary dramatically based on condition, with particularly steep increases for specimens grading MS-65 and above. The following table provides approximate retail values based on recent PCGS Price Guide figures and Heritage Auction results as of April 2025:
| Grade | Description | PCGS Value |
| G-4 | Good | $20-25 |
| VG-8 | Very Good | $30-35 |
| F-12 | Fine | $40-45 |
| VF-20 | Very Fine | $60-70 |
| XF-40 | Extra Fine | $95-110 |
| AU-50 | About Unc. | $150-175 |
| MS-60 | Uncirculated | $225-250 |
| MS-63 | Choice Unc. | $400-450 |
| MS-65 | Gem Unc. | $1,500-1,800 |
| MS-66 | Premium Gem | $5,000-6,000 |
| MS-67 | Superb Gem | $20,000+ |
Grading Challenges: The 1868 Shield Nickel presents specific grading challenges that collectors should understand:
- Strike Quality: Many 1868 nickels exhibit weakness in the horizontal lines at the top of the shield and in the rays on the reverse. This strike weakness should not be confused with wear when grading.
- Luster Assessment: Original mint luster on Shield Nickels appears somewhat subdued compared to modern issues. Proper luster has a satiny appearance rather than the cartwheel effect seen on later series.
- Planchet Quality: The copper-nickel alloy often results in unattractive spotting or discoloration. Premium examples should show minimal spotting and even coloration.
Notable Recent Auction Results:
- A PCGS MS-67 1868 Shield Nickel sold for $32,900 at Heritage Auctions in January 2024
- An NGC MS-66+ example brought $8,400 at Stack’s Bowers in September 2023
Varieties and Die Characteristics
The 1868 Shield Nickel offers several collectible varieties, with the most significant being die repunching and date position variations.
Key Varieties
1. Repunched Date Varieties:
The most notable RPD (Repunched Date) variety is the 1868/1868, where the date was punched twice with clear doubling visible under magnification. This variety (FS-301) commands a 20-40% premium over standard examples in comparable grades.
Authentication Tip: Look for doubling most prominent on the base of the “1” and upper loop of the “8” digits.
2. Doubled Die Varieties:
Several doubled die varieties exist for 1868, with the most significant being:
- DDO-001 (FS-101): Shows doubling on “IN GOD WE TRUST” and shield details
- DDR-002 (FS-801): Exhibits doubling on “CENTS” and stars
Authentication Tip: True doubled dies show consistent doubling across multiple design elements, while mechanical doubling (not a true variety) appears irregular.
3. Misplaced Date:
A rare variety shows evidence of a digit punched in the denticles below the date position (FS-302). This scarce variety brings significant premiums when properly attributed.
Major Error Types
The 1868 Shield Nickel is known for several fascinating error types that command substantial premiums in today’s market. These errors primarily resulted from the Mint’s continuing challenges with the hard copper-nickel alloy.
1. Clashed Dies
Clashed die errors occur when dies strike each other without a planchet between them. On 1868 Shield Nickels, this appears as:
- Partial “5” digit visible in the shield area
- Outline of shield visible near the “5” on reverse
Value Impact: Mild clashing adds minimal premium, but severe examples can bring 25-40% over standard examples.
2. Off-Center Strikes
Off-center strikes range from minor (5-10% off center) to dramatic (40-50% off center). The value increases substantially with the percentage off center, provided the date remains fully visible.
Value Analysis: A 30-40% off-center 1868 nickel in XF condition recently sold for $3,200 at Heritage Auctions, compared to $95 for a normally struck example.
3. Lamination Errors
The copper-nickel composition was prone to incomplete mixing during the planchet preparation process, resulting in lamination errors where pieces of the surface separate or peel away.
Authentication Tip: True laminations follow the metal flow lines and appear as flaking metal, while post-mint damage typically shows sharp edges and unnatural patterns.
4. Cracked Dies
Late-die state examples often show extensive die cracks, particularly from the rim toward the central design elements. These cracks appear as raised lines on the coin’s surface.
Value Assessment: Minor die cracks add minimal value, but dramatic “shattered die” examples can command 50-100% premiums, especially when the cracks create interesting visual effects.
5. Cuds and Die Breaks
Advanced die breaks resulted in portions of the die breaking away completely, creating raised, blank areas on the coins known as cuds. Large cuds on 1868 nickels are particularly desirable.
Value Impact: A large cud error can increase the value by 100-400% depending on size and location.
Authentication Guide
Counterfeit 1868 Shield Nickels exist in the marketplace, primarily targeting higher-grade examples. Follow these guidelines to authenticate your specimen:
1. Weight and Dimensions: Genuine 1868 Shield Nickels should weigh 5.00 grams (±0.097g) and measure 20.5mm in diameter. Counterfeits often fail to match these specifications precisely.
2. Die Characteristics: Authentic examples show consistent die characteristics including:
- Slight weakness in the top horizontal shield lines (a production issue, not a counterfeit indicator)
- Properly formed stars with five points each
- Correct font style with period spacing in “IN GOD WE TRUST”
3. Metal Flow Lines: Under magnification, genuine specimens display natural metal flow lines that radiate from the center toward the rim.
4. Edge Examination: The edge should be plain without reeding and show natural “upset” ridging rather than machine-made uniformity.
Authentication Tip: Chinese counterfeits often show incorrect metal composition, with many having a brassy appearance rather than the proper silver-gray color of copper-nickel.
Preservation Considerations
The copper-nickel composition of Shield Nickels presents unique preservation challenges:
1. Environmental Damage: The copper content makes these coins susceptible to corrosion in high-humidity environments. Store in PVC-free holders with stable relative humidity.
2. Cleaning Effects: Improper cleaning can severely damage Shield Nickels. Harsh chemicals or abrasives will permanently affect the surface. Never clean these coins as it significantly reduces value.
3. Natural Toning vs. Artificial Coloring: Natural toning on Shield Nickels typically presents as light golden to gray-blue patina. Artificial toning often appears unnaturally vibrant or shows fingerprint patterns.
4. Proper Storage: For long-term preservation, use inert materials like Mylar or archival-quality holders rather than paper envelopes that may contain harmful sulfur compounds.
Market Trends and Investment Outlook
The market for high-grade 1868 Shield Nickels has shown steady appreciation over the past decade. Premium examples, particularly those grading MS-66 or better, have demonstrated strong price performance.
PCGS population reports indicate fewer than 15 examples certified in MS-67 or better, making top-grade specimens true condition rarities. Major error types have also shown increasing collector interest, with prices for dramatic errors increasing approximately 30% over the past five years.
Current trends suggest continued appreciation for:
- Gem uncirculated examples (MS-65+)
- Major varieties with clear attribution
- Dramatic errors with eye appeal
- Original, untoned specimens with full strikes
Investment Consideration: While common circulated examples track inflation at best, premium specimens have outperformed many traditional investments, showing 8-12% annual appreciation for properly authenticated gem examples.
Frequently Asked Questions
Are there any proof 1868 Shield Nickels?
While no official mintage figures exist for proof 1868 Shield Nickels, numismatic researchers estimate approximately 600 proofs were struck. These are distinguished by sharp strikes, mirrored fields, and evidence of die polishing. Authentic proofs command $10,000+ in PR-64 condition according to recent PCGS valuations.
Why do many 1868 Shield Nickels show weak strikes?
The hardness of the copper-nickel alloy challenged the Mint’s equipment. Combined with relatively shallow die designs, this resulted in frequently weak strikes, particularly in the horizontal lines at the top of the shield and in the rays on the reverse. This weakness represents a production characteristic rather than wear.
How can I distinguish between a genuine 1868 Shield Nickel and a common counterfeit?
Beyond weight and measurement, examine the date placement (which should show consistent positioning), the precise star arrangement, and the shield details. Most counterfeits show incorrect spacing between “IN GOD WE TRUST” or improperly formed stars. Consider professional authentication for any high-value example.
What causes the spotting often seen on Shield Nickels?
The copper-nickel alloy used was prone to uneven mixing during production. Over time, this compositional inconsistency often manifests as spots or discoloration. While some spotting is expected and acceptable, heavily spotted examples typically sell at discounts of 20-30% compared to clean examples in the same grade.
Are 1868 Shield Nickels a good long-term investment?
High-grade examples (MS-65 and above) with original surfaces and strong eye appeal have demonstrated solid long-term appreciation. However, common circulated examples generally track inflation at best. For investment-grade specimens, seek examples with CAC approval, strong strikes, and minimal surface problems, focusing on grades where population statistics show significant rarity increases.
