Chairman's Gavel

What Will You Pay For An Encased Penny?

By Ron Mui #25

I recently received an e-mail from a dealer I had met on eBay. He asked, “Ron, I have located three encased, two Lincolns and one Indian. What will you pay?”. I replied that his description of the three encased would need more detail for me to better price them. He wrote back, “I saw the three at a flea market, you must give me an idea of what you’ll pay”. As I replied to this, trying to explain the many factors that might determine the worth of any given encased, I realized that this was going to be a long e-mail.

There are so many variables that can affect the value of any given encased piece. I will attempt to cover some of these variables in this writing. It is important to remember that these are just general guidelines and that any given encased piece will have its own unique set of circumstances that will ultimately determine its value.

I think that one of the first things to determine the value of an encasement would be its condition. Generally, condition is not as important to an encased collector as it would be to a coin collector, but obviously a well preserved piece will have a higher value than a damaged or worn piece. The worst condition of an encased might be a piece with a missing or a replaced coin. Any evidence of tampering or a visible attempt to remove the coin will greatly detract from the value of the piece. General wear of the piece is acceptable but the stronger and more readable the inscription, the higher the value. An uncirculated pristine looking encased piece would be the most desirable and therefore would be valued the highest.

The date of the cent or age of the encased piece will also determine the value. The date of the cent most often indicates the age of the encased or the year it was manufactured. There are legitimate exceptions to this rule but not many. Generally, the older the encased piece, the higher the value would be. Encased Indian cents are usually more valuable than encased Lincoln pennies. Likewise, encased wheat reverse pennies usually value higher than memorial reverse pennies.

The composition of the encasement, or the material the encasement is made out of, can make a big difference in the price of the encased piece. The most common material used to encase coins for advertising purposes was aluminum. However, other materials were used for encasing coins. Brass for instance, as well as other metals were used for encasing coins but were not nearly as common as aluminum thereby making their value to collectors considerably higher. Celluloid buttons and mirrors were also used as a material to encase coins for advertising and they bring an even higher premium than the brass and metal encasements.

The denomination of the coin being encased is another consideration when it comes to pricing encasements. Pennies are undoubtedly the most common coin seen in advertising encasements but there were also Canadian large cents as well as other foreign coins that were used for encasements. In the United States there were businesses that used nickels, dimes, quarters, halves and even dollar coins for their encasements. Usually if an encasement carries any coin other than a U.S. penny it will have a higher value to varying degrees.

It would not seem that something as trivial as the shape of the encasement could make a difference in its value or selling price but it most definitely does. The round and horseshoe shaped encasements are by far the most commonly seen and would therefore not value nearly as high as some of the more rare shapes. The wishbone and chamber pot shaped encasements are much tougher to come by and so naturally they command higher prices than the common shapes. There are also shapes for encasements that are even more rare than the wishbone or chamber pot. The teddy bear shape comes to mind most readily although there are certainly others as well. These rare shapes often realize prices that continually surprise and amaze even the most seasoned encased collectors.

The subject matter of the encased coin advertising piece also plays a major role in determining a value. It seems that every type of business imaginable at one time or another advertised with encased coins. The nature of some of these businesses has made their encasements more desirable to collectors than others. For instance, any encased with the word “saloon” on it is very desirable and would realize a premium price when sold or traded amongst collectors of encased coins. Some lesser examples of better subject matter for encased would be “Chevrolet” encased from Chevrolet’s advertising campaign of 1948. Any type of “brewery” related encased. Encased that were “good for” something are also highly sought after by collectors. There are many other types of subject matter that are also highly collectible in encased but it would take another article to cover them all.

The location or area that an encased piece advertises from is just one more of the many factors that will determine its worth or value to collectors. A maverick encasement is an advertising encased that does not have an address or specific location of the advertising business on it. In regards to location, mavericks are probably the least prized by collectors. Locations listed on encased that collectors might find more desirable would be from sparsely populated areas that had very few businesses. Some examples of better locations for encased to come out of would be Alaska and Hawaii as well as many other overseas or foreign locations. In short, the locations that are most seldom seen on encased are the ones that are prized most highly.

It is important to remember that all of the above considerations that we’ve covered for pricing or valuing encased are just general guidelines and not steadfast rules. I have learned through experience, trial and error that one mans trash can be another mans treasure. I have come to the conclusion that the value of any given encased is only as much as the most interested collector is willing to pay for it. Sometimes that price exceeds our expectations and sometimes it disappoints us.