Talk is they might be getting rid of the nickel, too.
The “they” refers to the United States government.
And the “too”?
Well, that’s in conjunction with the U.S. one cent coin, which is on its way toward complete elimination.
As you may have heard, they’re getting rid of the penny — and not everyone is happy about that!
How The Penny’s Demise Affects Nickels
We’ve been talking for years now about the end of the one cent coin. Matter of fact, America has debated getting rid of the penny since at least the 1970s and ’80s — when copper prices began rising to new heights.
Of course, the penny stuck around another few decades. The government combated increasing copper prices by making cheaper zinc pennies beginning in 1982.
But as time went on, even those became too expensive to produce and distribute — costing nearly 4 cents a pop to make each penny by the beginning of 2025.
The mounting cost of making pennies led the U.S. government to announce the end of the penny in 2025.
This would leave the nickel as the lowest-denomination coin in United States circulation.
But this also led to at least one major repercussion for the nickel: renewed concerns about what it costs to make nickels. And the math isn’t in favor of the nation’s five cent coin!
How Much Does It Cost To Make A Nickel?
It has cost much more than just five cents to make nickels for a long time.
Since at least the mid-2000s, the production and distribution of each five cent coin has cost American taxpayers MORE than just five cents per nickel.
By the time the U.S. government was announcing the end of the penny in 2025, each nickel cost about 13.78 cents each to make.
What’s more? Persistent inflation and other types of price increases point to the cost of making nickels going upward still from there.
When Will They Stop Making Nickels?
As of this writing, there’s no timeframe on if or when the last U.S. nickels will be made.
However, many government officials are focused on cutting wasteful spending. Therefore, spending money on a coin that costs some three times more than its face value in circulation could be deemed an extraneous expense by anyone.
This leads many to believe the end of the nickel may be nearing.
What Happens If We Get Rid Of Nickels?
The most immediate effect of getting rid of nickels is that the dime would become the lowest-denominated United States coin still in production. (That is, of course, if the penny is no more.)
So, what does eliminating the nickel mean for consumers, like you and me?
These are the most likely scenarios:
- If you use CASH to pay for goods and services… you would see your transactions rounded to the nearest dime. This might not seem like a big deal to many. But the idea of potentially paying 3, maybe 5, perhaps 7, even 9 cents more for something induces much anxiety among those with lower incomes and the unbanked (those who don’t use credit or debit cards).
- If you use PLASTIC or phone APPS to pay for purchases… then you wouldn’t necessarily see much of a difference. Your transactions will likely remain charged to the nearest cent.
But… the stakes are different for coin collectors.
For one, if the nickel became an obsolete coin, numismatic interest in all nickels would probably increase.
And just imagine the number of non-collectors who would assume all nickels were suddenly worth much more as collectibles because these coins were no longer being made!
It goes deeper than that though…
Eventually, nickels would all but completely disappear from circulation if the coin is no longer being struck and fewer people are using the coin.
This would make it more difficult for collectors to obtain nickels from pocket change, bank rolls, and other avenues of circulation — leaving many having to buy them from other sources, like coin dealers.
Will Nickels Become Rare & Valuable If They’re No Longer Made?
It’s impossible to say how much U.S. nickels will be worth in the future when they’re no longer struck. There are just too many factors at play and too many variables to consider. So there’s no stock answer as to what nickels will be worth in the future when they’re no longer being made.
However, it’s not far-fetched to believe that many nickels could be worth significantly more money as they become scarcer in circulation.
It’s also reasonable to predict that the masses will believe that nickels will become rare and valuable when the U.S. Mint is no longer making them. This might lead more people to collect them and, subsequently, help push values for old and rare nickels even higher — especially for nickels that are already rare and worth a lot to begin with.
The Bottom Line
Should you therefore begin building a set of nickels for your coin collection?
That’s entirely up to you…
But you may be well served getting a jump start on collecting Jefferson nickels or other valuable nickels — like Liberty Head or Buffalo nickels — while they’re relatively easy to obtain.
Who knows? These coins could all be worth much more in the future if the United States stops making nickels!
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