PCGS Market Deep Dive: Mostly Nickels

In this PCGS Market Deep Dive, we focus on U.S. three cent to five cent denominations, including the Three Cent Silver, Three Cent Nickel, and the various five-cent nickel series. Of course, all this talk about “nickels” may make some wonder what a “nickel” is… And why nickel?

While the Three Cent Silver hit the scene in 1851, a nickel version of that same denomination came around in 1865. A year later, in 1866, a five-cent coin also composed of a nickel alloy premiered, and the term “nickel” to describe U.S. five cent coins became commonplace, even as the silver half dime (which was also denominated as five cents) continued in production through 1873.

Much of the reason behind abolishing the silver three cent coin and half dime was due to their silver composition; both the nickel-based three cent and five cent coins had proven successful and were well accepted by the public. Yet, perhaps the most intriguing thing about these popular “nickels” is that none of these coins – not even the Jefferson Nickels in our pockets and purses today – are made from pure nickel. No circulating U.S. coin has ever been struck from a compositional alloy consisting of more than 25% nickel; the balance is usually copper. Yet, we call them “nickels” anyway.

The six-coin series we profile in this edition of PCGS Market Deep Dive are indeed mostly nickel, and they include the Three Cent Silver (1851-1873), Three Cent Nickel (1865-1889), Shield Nickel (1866-1883), Liberty Nickel (1883-1913), Buffalo Nickel (1913-1938) and Jefferson Nickel (1938-Date).

Breaking down these six rich, dynamic series further, we see some cool storylines unfold. For example, the tiny Three Cent Silver “Trimes” were once known as “fish scales,” as they were among the smallest and most fragile of U.S. coins. The Three Cent Nickel was first produced in 1865 because the “Trime,” like the silver half dime, was being hoarded by the public for its silver content. Nearly 30 million Three Cent Nickels were produced during the first 10 years of the series, though just two million were struck during the last 15 years.

Design changes in the first year or two of issue for the Shield, Liberty, and Buffalo Nickels offer both the type and date-and-mintmark collector additional options for their nickel collections. All three of these challenging series yield rare and unusual dates, like the 1867 Without Rays Pattern Reverse Shield Nickel, 1883 “Cents” and “Without Cents” Liberty Nickels, and 1913 Variety 1 and Variety 2 Buffalo Nickels. Then there is the most famous nickel of all: the 1913 Liberty Nickel! The last one to cross the auction block was the finest-known specimen, graded PCGS PR66. It hammered for an astonishing $4,560,000 in an August 2018 Stack’s Bowers Galleries sale.