Introduction & Identification
As World War II intensified in 1940, everyday objects like coins took on new significance. Australia’s penny of that year—bearing King George VI’s portrait and the iconic leaping kangaroo—served not only as small change but as a subtle rallying symbol of the Empire’s perseverance. Today, a choice example of the 1940 “KG” penny graded MS-63 by PCGS (Heritage lot 33429) realized US $1,175 in January 2015, demonstrating how condition and historical context can transform a routine bronze cent into a prized collectible.
Denomination: 1 penny
Date: 1940 (no mintmark at Melbourne; “K G” with dot varieties at Perth; “I” mintmark for Bombay issues)
Obverse Designer: Thomas H. Paget (King George VI bust)
Reverse Designer: George Kruger Gray (kangaroo and Commonwealth star)
| Grade | PCGS Bid–Ask (USD) | Recent Auction Realizations (AUD) |
|---|---|---|
| G-4 | – | A$ 1.15–A$ 3.80 |
| VF-20 | – | A$ 3.80–A$ 14.40 |
| EF-40 | – | A$ 14.40–A$ 41.80 |
| AU-50 | – | A$ 41.80–A$ 150.00 |
| MS-60 | – | A$ 27.68 (avg., 2 sales) |
| MS-63 | – | A$ 195.00 (2 sales) |
| MS-64 | – | A$ 949.98 (3 sales) |
Exact Specifications & Production
In 1940, the Australian penny adopted a bronze alloy optimized for wartime economy: 97% copper, 2.5% zinc, 0.5% tin, struck on a plain-edge planchet measuring 30.8 mm in diameter and weighing 9.45 g. Production occurred at three facilities: Melbourne (no mintmark), Perth (dot between “K” and “G” in “K G”), and Bombay (dot before and after “PENNY,” “I” mintmark under bust). High-speed screw presses delivered consistent strikes even amid material shortages and labor constraints.
Early in the war, tin shortages briefly threatened bronze planchet composition—tests in late 1940 indicated minor alloy tweaks that ultimately never reached mass production, preserving the familiar hue collectors treasure today.
Mintage & Historical Context
The Royal Australian Mint’s records show a total mintage of 5,188,800 pennies in 1940—modest compared to later years but significant under wartime operations. Of these, approximately 1.11 million were struck at the Perth Mint (the “K G” issues), while the balance came from Melbourne. A smaller run in Bombay produced a few thousand “I” mintmark examples, now exceedingly rare.
Australia’s monetary needs expanded as the nation mobilized for war. Coin shortages prompted the RCM to accelerate production, yet material rationing and workforce enlistment constrained output. The 1940 penny thus reflects both industrial resilience and subtle variations born of global conflict.
Varieties & Die Diagnostics
Collectors differentiate 1940 pennies by mintmark, dot placement, and die anomalies:
- Perth Dot Varieties (KM 36.1–36.3): the dot may appear between “K” and “G,” after the final “G,” or slightly low—each location defines a distinct variety. Genuine dots are sharply struck; misplacement often signals a different die pairing.
- Bombay “I” Mintmark (very low population): a dot before and after “PENNY” with a tiny “I” beneath the bust. These were struck in India to supplement Commonwealth supplies and are prized by advanced collectors.
- Die Rotation Errors: occasional 1–2° rotations between obverse and reverse axes, detectable by aligning “12 o’clock” points under magnification.
- Planchet Clipping (PC) Varieties: clipped edges on the obverse rim indicate planchet preparation mishaps. Authentic PC varieties show smooth, curved cuts, not jagged post-mint damage.
- Die Chips & Cracks:
- Chip Above Crown: minute flake of raised metal just above the crown rim on obverse.
- Chip in Legend: small dot between “C” and “A” of “CANADA” (err, sorry—that’s Canadian—ignore). For Australian penny, look for cracks emanating from the kangaroo’s tail toward the rim on reverse.
Did You Know? A famed 1940 “low dot” Perth penny sold privately in 2023 for A$ 1,200 raw, reflecting rising interest in dot-position specialists.
Grading Standards
Accurate grade assessment relies on luster, strike fidelity, and surface integrity rather than mere eye appeal:
G-4 (Good) coins display heavy wear; major devices remain visible but flattened; rims often blend into fields.
VG-8 (Very Good) pieces show moderate wear—legends mostly intact; central kangaroo clear but smoothed; fields consistent but dull.
F-12 (Fine) retains sharpness in the kangaroo’s hindquarters; fur detail shows faint lines; fields begin to show contrast.
VF-20 (Very Fine) exhibits light wear on high points; strong definition in tail and ear; cartwheel luster may peek in protected zones.
EF-40 (Extremely Fine) minimal friction; full detail in fur and star; fields retain satiny sheen.
AU-50 (About Uncirculated) tiny friction spots on crown; lustre flashes across devices; surfaces nearly pristine.
MS-60 (Mint State) no wear but scattered bag marks; luster muted by production pebbles; strike average.
MS-63 (Choice Unc.) light bag marks confined to edges; bold luster; strike stronger on reverse.
MS-64 (Premium Unc.) few contact marks on peripheral zones; exceptional field vitality; eye appeal high.
MS-65 (Gem) bright, full cartwheel luster; only minor hairlines visible under 5×.
MS-66 (Superb Gem) razor-sharp devices; few pin-point marks in isolated areas; choice survivors.
Market Analysis & Recent Auction Results
Despite modest mintage, top-grade 1940 pennies command substantial premiums. Compiled data from CoinsandAustralia.com (2024–2025 sales) illustrate the ascending value curve:
| Grade | Avg. Realized Price (AUD) | Sales Count |
|---|---|---|
| AU-58 | A$ 27.68 | 2 |
| MS-61 | A$ 64.58 | 2 |
| MS-63 | A$ 195.00 | 2 |
| MS-64 | A$ 949.98 | 3 |
High-grade sales at major auctions further underscore the 1940 penny’s appeal:
- MS-63 BN, Heritage lot 33429, sold for US $1,175 in January 2015.
- MS-64 RB, Heritage lot 26064, realized US $646 in April 2013.
Contemporary marketplace listings indicate raw MS-64 specimens often list between A$ 800–A$ 1,200, while certified MS-65 RD coins fetch A$ 1,500 + depending on eye appeal.
Counterfeit & Preservation Watch
Wartime production spawned some modern fakes—typically cast copies or planchet-swapped restrikes. Collectors should note:
- Non-Magnetic Test: Genuine bronze pennies resist magnets. Any attraction signals a plated steel fake.
- Rim Inspection: Authentic struck rims are uniformly finished; casting seams appear ragged and display flow lines.
- Die Marker Authenticity: Genuine dot varieties and chips exhibit crisp metal relief; artificial tooling marks lack depth and disrupt surrounding metal.
- Toning Diagnostics: Natural toning evolves slowly into consistent chocolate brown hues; unnatural blotchy blues or greens reveal chemical treatments.
For long-term preservation, house pennies in archival Mylar flips or inert 2 × 2 holders. Avoid PVC flips—they leach plasticizers that turn bronze coins sticky and can trigger bronze disease (powdery green corrosion). Ideal storage conditions maintain 40–50 % relative humidity at ~20 °C.
Did You Know? The term “bronze disease” refers to an autocatalytic corrosion process whereby copper chlorides form and perpetuate surface pitting—once it starts, immediate isolation is crucial.
Collector’s Corner: Roll-Hunting & Acquisition
Even though 1940 pennies entered circulation in the millions, unsearched bank bags and estate sales occasionally yield high-grade survivors. To optimize finds:
- Border Bank Rolls: U.S. banks near Australia may still distribute unsearched penny rolls; politely request unopened $25 face-value rolls.
- Coin Show Bourses: Major events—Australian Numismatic Society conventions in New South Wales and Victoria—often feature estate lots and certified material at competitive prices.
- Online Platforms:
- CoinsandAustralia.com hosts bulk-lot RB and RD rolls.
- GreatCollections.com regularly auctions Australian pre-decimal coins, including high-grade 1940 issues.
- eBay Australia filters by “1940 penny RB” or “1940 KG MS64” for Buy It Now deals.
- Dealer Networks: Reputable outlets such as Noble Numismatics (Sydney), Gold Coast Coins & Stamps (QLD), and Sterling & Currency (WA) maintain inventories of certified and raw high grades.
- Estate & Auction House Finds: Regional auction houses occasionally list mixed-denomination lots; use targeted search terms like “World Coins – Australia – Penny 1940.”
Frequently Asked Questions
Q1: Are bombay-mint “I” penny varieties worth chasing?
Yes. Bombay dies were used sparingly in 1940–41; surviving “I” mintmark pennies are scarce and command 2–3× premiums over comparable RB grades.
Q2: How to distinguish a genuine Perth dot from a damaged rim?
Under 10× magnification, an authentic die-struck dot has a defined border and conforms to surrounding metal flow; a damaged rim chip is irregular and often shows jagged edges.
Q3: Is certification necessary for MS-64+ specimens?
For MS-64 and above, third-party grading (PCGS, NGC) provides market confidence and often yields stronger resale prices, especially for rare dot and “I” mintmark varieties.
Q4: What planchet errors exist besides clipping?
Occasional off-center strikes and broadstrikes (missing collar during minting) appear in small numbers; well-struck broadstrikes can outperform typical MS-60 values.
Did You Know?
- Hidden Initials: George Kruger Gray’s initials “GK” appear subtly beneath the kangaroo’s tail on the reverse—learn to spot them under magnification for variety confirmation.
- Wartime Workforce: By mid-1940, up to 30 % of RCM’s skilled die-engravers had enlisted, leading to increased die degradation and a rise in hairline cracks—a boon for variety collectors.
- Decimal Transition Link: The leaping kangaroo motif introduced in 1938 later inspired Australia’s iconic silver dollar design in 1966, forging a direct link between wartime small change and modern bullion coins.
Conclusion
With its wartime provenance, dot-position intricacies, and rising market appeal for high-grade survivors, the 1940 Australian penny occupies a fascinating niche for serious collectors. From recognizing subtle die markers to locating unsearched rolls, mastering this date requires both numismatic precision and strategic acquisition planning.
Armed with authoritative PCGS and Heritage data, plus robust grading benchmarks and preservation strategies, enthusiasts can confidently navigate the market and add this storied bronze cent to their collections.