Introduction
The 1938 Australian penny introduced a new national icon: George Kruger Gray’s leaping kangaroo set beneath the Commonwealth star. Minted at Melbourne on the eve of World War II, this bronze cent combined modern design with colonial gravitas and remains one of the most sought-after pre-decimal issues. Collectors prize the first kangaroo reverse not only for its aesthetic appeal but for its historical resonance as Australia prepared to join the global conflict.
Did You Know? The same kröger-gray kangaroo motif later inspired Australia’s celebrated 1966 silver dollar design, cementing its place in numismatic history.
Identification & Quick Value Snapshot
A standard Melbourne strike from 1938, bearing no mintmark, typically trades between AUD 45 and AUD 65 in Very Fine condition and up to AUD 100 in Extremely Fine. About Uncirculated pieces with strong satin luster command around AUD 250, while Mint State survivors start at AUD 350 for MS-60 and escalate to over AUD 6,000 for MS-65 gems. Special proofs from Sydney, identifiable by a small “S” below the wreath, and rare trial strikes from Bombay, marked with an “I” beneath the bust, can eclipse these figures by several thousand dollars.
| Grade | Typical AUD Realizations |
|---|---|
| VF-20 | 45–65 |
| EF-40 | 65–100 |
| AU-58 | 200–300 |
| MS-60 | 350–450 |
| MS-63 | 1,200–1,500 |
| MS-65 | 4,000–6,500 |
Specifications & Minting Details
Measuring 30.8 mm in diameter and weighing 9.45 g, the 1938 penny features a plain edge and a bronze alloy of 97 % copper, 2.5 % zinc, and 0.5 % tin. Circulation strikes originated exclusively from the Melbourne Mint, with no mintmark. Presentation proofs were struck in Sydney and carry a discreet “S” beneath the wreath, while a small batch of trial strikes produced at Bombay bear an “I” below King George VI’s bust. High-speed screw presses ensured uniform strikes, even as wartime material demands and workforce changes introduced subtle die wear.
Historical Context
Released just months before Australia entered World War II, the 1938 penny symbolized both national identity and monetary modernization. Its introduction coincided with a broader shift from silver to bronze for low-denomination coins, preserving precious metals for defense needs. Melbourne’s output of nearly 17 million circulation pennies met domestic demand, while the Sydney proofs and Bombay trials served imperial numismatic programs. The looming conflict soon strained resources and labor, making 1938 the largest peacetime mintage for the kangaroo design until decimalization in the 1960s.
Varieties & Diagnostic Features
While the standard Melbourne strike is most accessible, advanced collectors focus on mintmark and die-variety nuances. Sydney proofs exhibit deeply mirrored fields and frosted devices, with their “S” mintmark visible only under magnification. Bombay trials, with crisp relief from lighter striking, are exceptionally rare and often surface only in major institutional collections.
Among circulation strikes, expert eyes seek the faint repunched “9” in the date—detectable as a second serif under 5× magnification—and hairline die cracks radiating from the kangaroo’s tail into the field. Occasional planchet clips produce smooth, curved missing-metal areas on the obverse rim, testaments to mint-planchet preparation errors rather than subsequent damage.
A single Sydney proof “S” penny realized over AUD 2,500 in 2022, underscoring the allure of these specially struck presentation pieces.
Grading Hallmarks
Evaluating a 1938 penny hinges on luster quality and surface integrity rather than mere eye appeal. Very Fine examples retain clear legends and defined fur detail on the kangaroo, though high points show moderate smoothing. Extremely Fine coins reveal minimal friction and a hint of satin sheen in protected rims and legend panels.
About Uncirculated survivors deliver strong cartwheel luster with only a few high-point nicks. Mint State pieces are classified by the scope of contact marks: MS-60 retains muted luster overshadowed by bag marks, MS-63 offers bold central fields with abrasions confined to edges, and MS-65 gems display full cartwheel brilliance with only pin-point marks under higher magnification.
Market Trends & Auction Highlights
The 1938 penny has shown steady price appreciation over the last decade. Circulated grades remain accessible to general collectors, while Uncirculated and Proof examples appeal to specialists. Recent auctions in Melbourne and Sydney have pushed MS-63 survivors into the AUD 1,200–1,500 range, with MS-65 coins achieving AUD 5,500 and above. Proof “S” pieces frequently pass the AUD 3,000 mark, and while Bombay “I” trials seldom appear at public sales, their estimated value exceeds AUD 7,500 when they do. Watch for major house sales in October and March—typical listing seasons for pre-decimal rarities.
Counterfeit Detection & Preservation
Given the value of high-grade and mintmark varieties, careful authentication is crucial. A magnet test quickly rules out steel-based counterfeits, while rim examination under magnification can reveal casting seams or flow lines. True die chips and repunched figures will show crisp raised metal; artificial tooling marks often gouge and distort the field.
Natural patina on a genuine bronze deepens into a consistent chocolate brown over decades; vivid blues, greens, or spotty hues betray chemical toning. For preservation, store pennies in archival‐safe Mylar flips or inert holders, avoiding PVC holders that leach plasticizers and promote bronze disease—an autocatalytic corrosion visible as powdery green spots.
Did You Know? Bronze disease was first identified by archaeologists studying ancient copper artifacts, where moisture-induced copper chlorides triggered relentless surface decay.
Acquisition Strategies
Serious collectors find 1938 pennies through multiple channels: monitoring Sydney and Melbourne auction catalogs for proof and high-grade lots; setting online alerts for search terms like “1938 MS-65” or “proof S penny”; rolling-hunt at banks linked to Australian expatriate communities; and networking within specialized pre-decimal forums.
Dealer recommendations include Noble Numismatics in Sydney, Sterling & Currency in Perth, and Gold Coast Coins & Stamps, each noted for quality pre-decimal listings. Estate sales and local coin shows remain fertile ground for ungraded circulation strikes, offering the chance to inspect coins firsthand and negotiate multi-coin acquisitions.
Frequently Asked Questions
Q1: How rare are the “I” mintmark Bombay trials?
A: With under 1,200 struck, genuine examples rarely appear and command premiums above AUD 7,000.
Q2: When should I consider grading my coin?
A: For MS-63 and above, third-party certification (PCGS, NGC) enhances resale value and market confidence.
Q3: Are planchet-clipped 1938 pennies valuable?
A: Yes—error collectors pay 2–3× standard MS-60 values for well-defined clips.