Early US penny sells for $1.38 million

An example of the first official US coin minted by the federal government on its own equipment and premises sold last month for a staggering $1.38 million.

Not bad, considering it represents a markup of nearly 140 million times over it original face value.

Heritage Auctions sold the 1793 Chain cent in January, likely the most money ever paid for a one-cent piece.

The 219-year-old coin is one of a relatively small number of Chain cents that survive, and one of the best examples, being classified in near-mint condition.

Called the Eliasberg specimen, the Chain cent auctioned by Heritage carries a provenance that dates back to 1864.

Heritage described it as having “a bold strike with excellent definition of the motifs, including the fine strands of Liberty’s hair. The rim is bold and the centering is excellent. Every aspect of this superlative Chain cent is remarkable. The rich olive and mahogany-brown surfaces are highly lustrous and virtually flawless.”

The Chain cent is an example of a large cent, so called because it was larger than today’s quarter. It had twice the copper of the half cent, making them heavy and quite bulky.

As the price of copper rose during the 1800s, the large cent became too expensive to produce and was replaced in 1857 by the small cent, which is still in use today.

Some 36,103 Chain cents were minted in early 1793. Designed by Henry Voight, the Chain cent was almost universally criticized from the outset for its lack of aesthetic appeal and perceived allusion to slavery related to the chains on the reverse.

In reality, the reverse design, an interlocking chain with 15 links, represents the 15 American states in existence at that time.

It didn’t matter, though, and by mid-March 1793 production of Chain cents had been halted, to be replaced a short time later with Wreath cents.

Probably no more than 1,500 to 2,000 Chain cents may actually survive today. Many of these are impaired, low-grade coins, and there may only be 10 or so known today in mint condition, according to Coin Community.

The coin’s low survival rate, small mintage and place in US numismatics history has made it popular with generations of collectors. Even examples in the worst condition sell for $2,000-$3,000.