As a lifelong coin collector and professional numismatist, I‘ve seen my share of rare and valuable coins across all denominations. But there‘s something special about the nickel. This humble 5-cent piece has captured the hearts of collectors for generations with its classic designs, rich history, and surprising rarities.
In this comprehensive guide, I‘ll share my expert insights on collecting rare nickels, from the key dates and varieties to look for, to how to grade them accurately, to the best strategies for buying and selling these prized coins. Whether you‘re a seasoned collector or just starting out, this article will equip you with the knowledge you need to build a top-notch nickel collection. Let‘s get started!
The Complete History of the Nickel
The story of the nickel begins in the 1860s, when the US Mint was grappling with a coin shortage brought on by the Civil War. At the time, silver coins were being hoarded and melted for their precious metal content, leaving a dearth of small change in circulation.
To address this issue, Congress passed the Coinage Act of 1864, which authorized a new 5-cent coin made of a copper-nickel alloy. This marked the birth of the "nickel" as we know it today.
Here‘s a timeline of the major nickel series over the years:
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Shield Nickel (1866-1883): The first nickel coin featured a simple shield design on the obverse and the number "5" surrounded by stars and rays on the reverse.
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Liberty Head Nickel (1883-1913): Also known as the "V" nickel for the Roman numeral "V" on the reverse, this series features a striking portrait of Lady Liberty. The rare 1913 Liberty nickel is one of the most valuable coins in the world.
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Buffalo Nickel (1913-1938): Designed by James Earle Fraser, this iconic coin showcases a Native American chief on the obverse and an American bison on the reverse. It‘s known for its beauty and many interesting varieties.
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Jefferson Nickel (1938-2003, 2006-Present): Featuring a portrait of President Thomas Jefferson on the obverse and his home Monticello on the reverse, this long-running series includes several key dates and errors.
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Westward Journey Nickel Series (2004-2005): The Mint celebrated the bicentennials of the Louisiana Purchase and Lewis and Clark expedition with this special commemorative series featuring four different designs.
Each of these series has its own story to tell and rare treasures waiting to be discovered. Next we‘ll take a closer look at some of the most valuable nickels and what makes them so special to collectors.
Key Date Nickels and Varieties to Collect
While most common date nickels are worth only face value, there are several dates, mintmarks, and varieties that are quite rare and valuable. Here are some of the most highly prized nickels that collectors dream of owning:
1913 Liberty Head Nickel
The undisputed king of rare nickels is the 1913 Liberty Head. Only five examples are known to exist, and they were allegedly struck under mysterious circumstances at the Philadelphia Mint after the Liberty Head design was officially discontinued.
These coins first surfaced in the 1920s and have been the subject of much intrigue and controversy in the numismatic world ever since. In 2013, the Eliasberg specimen graded PR66 by PCGS sold at auction for a staggering $3,172,500.
Owning a 1913 Liberty Head nickel is the ultimate dream for many collectors. But with only five coins extant and prices in the millions, it‘s a prize that only the wealthiest can aspire to.
1926-S Buffalo Nickel
With a mintage of just 970,000 coins, the 1926-S is the lowest production Buffalo nickel and a key date in the series. It‘s especially rare and valuable in high Mint State grades due to the generally weak strikes and lackluster luster of this issue.
In 2008, a magnificent PCGS MS66 example of the 1926-S nickel sold for $322,000, setting a price record for the date. More recently in 2021, Heritage Auctions sold a PCGS MS65 for $115,500, demonstrating the continued strong demand for gem examples of this rarity.
1916 Buffalo Nickel Doubled Die Obverse
The 1916 Buffalo nickel doubled die obverse is one of the most dramatic and sought-after varieties in the series. It features strong doubling on the date, LIBERTY, and the Indian‘s portrait, making it a striking naked-eye error.
While not an extreme rarity, the 1916 DDO is seldom offered for sale and commands strong prices in all grades. In 2017, an NGC MS64 example sold for $34,075. Even well-circulated specimens regularly bring four-figure prices due to collector demand for this popular variety.
1937-D 3-Legged Buffalo Nickel
Created by an over-zealous Denver Mint employee who ground down a reverse die too far and obliterated one of the buffalo‘s legs, the 1937-D 3-legged nickel is one of the most famous error coins of all time. It‘s also relatively affordable compared to other major rarities, making it a favorite of collectors.
Choice Mint State examples of the 1937-D 3-legged nickel routinely sell for five figures, with an NGC MS67 specimen realizing $108,000 in 2022. But even circulated examples can be quite valuable, with PCGS G4 coins selling for over $500.
1939 Reverse of 1940 Jefferson Nickel
When the Jefferson nickel debuted in 1938, it featured a reverse design with MONTICELLO positioned above the dome of Jefferson‘s famous home. The following year, the design was modified with MONTICELLO moved to the right of the building.
However, in 1939 some nickels were inadvertently struck with the older "reverse of 1938" die, creating the rare and popular 1939 reverse of 1938 variety. Pristine examples are especially prized, with a PCGS MS67 selling for $8,225 in 2014.
Top 10 Most Valuable Nickels
To give you an idea of what the crème de la crème of the nickel market looks like, here‘s a list of the top 10 most expensive nickels ever sold at public auction:
| Rank | Nickel | Grade | Price Realized | Auction Date |
|---|---|---|---|---|
| 1 | 1913 Liberty Head Nickel | PCGS PR66 | $3,172,500 | Jan. 2013 |
| 2 | 1913 Liberty Head Nickel | PCGS PR64 | $3,737,500 | Jan. 2010 |
| 3 | 1918/7-D Buffalo Nickel | PCGS MS65 | $336,000 | July 2006 |
| 4 | 1926-S Buffalo Nickel | PCGS MS66 | $322,000 | Jan. 2008 |
| 5 | 1916 Buffalo Nickel Doubled Die Obverse | PCGS MS64 | $264,500 | Aug. 2011 |
| 6 | 1917-S Buffalo Nickel | NGC MS67 | $138,000 | Jan. 2015 |
| 7 | 1919-S Buffalo Nickel | PCGS MS66 | $109,250 | Feb. 2008 |
| 8 | 1938-D/S Jefferson Nickel | NGC MS68 | $34,500 | July 2009 |
| 9 | 1880 Shield Nickel | PCGS MS65 | $25,300 | Jan. 2007 |
| 10 | 1867 Shield Nickel With Rays | PCGS PR66CAM | $23,500 | Jan. 2023 |
As you can see, rare nickels in top condition can bring truly astounding prices. But even if you don‘t have six figures to spend, there are still plenty of exciting and valuable nickels that can be collected on a more modest budget.
How to Grade Nickels Like a Pro
One of the most important skills for any coin collector is the ability to grade coins accurately. A coin‘s grade is a measure of its condition and state of preservation, and it has a huge impact on the coin‘s value and desirability.
In the US, most collectors and dealers use the 70-point Sheldon Scale to grade coins. The scale starts at 1 for a coin that‘s barely identifiable and goes up to 70 for a perfect Mint State coin with no imperfections.
Here are the main components that professional graders consider when evaluating a coin:
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Wear: How much of the coin‘s original design details have been worn away from circulation? Coins with less wear and more details visible will grade higher.
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Luster: Luster refers to the natural sheen and reflectivity of a coin‘s surfaces. Coins with full, unbroken luster that gleams brightly will score higher than dull or impaired coins.
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Marks: Graders look for signs of contact with other coins or objects, which can leave behind dents, scratches, or other blemishes on the coin‘s surface. Fewer and smaller marks mean a better grade.
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Eye appeal: While more subjective, a coin‘s overall visual appeal is still an important factor in its grade. Coins with exceptional eye appeal for their assigned grade may receive a (+) or star designation from graders.
Here are some images that show examples of nickels in various states of preservation and their corresponding grades:
[Images of nickels in grades AG, VG, XF, MS60, MS65, MS68 – include captions]When buying valuable rare nickels, it‘s best to stick with coins graded by the top tier services PCGS and NGC. These companies use consistent standards and have built reputations for impartiality and integrity.
Buying raw ungraded rare coins is risky, as counterfeits and altered coins are a real problem in the market. Unless you have the knowledge to detect sophisticated fakes, it‘s safer to buy coins already authenticated and graded by the professionals.
Tips for Collecting Rare Nickels
Are you ready to start building your dream nickel collection? Here are some of my top tips for collecting these coins smartly and effectively:
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Buy the best you can afford. For any given coin, try to acquire the highest graded example you can comfortably afford. Premium quality coins are more liquid and tend to appreciate better over time.
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Focus on rarity and key dates. Beyond the single year rarities like the 1913 Liberty nickel, look for the key date coins within each series that have the lowest mintages and populations. These tend to be the most desirable and valuable.
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Consider variety collecting. Pursuing a set of all the known doubled dies, repunched mintmarks, and other varieties can be a fun challenge with the potential for big rewards if you cherry pick rarities.
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Collect a whole series. Assembling a complete set of Buffalo nickels or Liberty nickels can be very satisfying and help you learn a lot about the series. Many collectors work on the more achievable circulated sets rather than costlier Mint State sets.
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Be patient and disciplined. Rare coins that are truly desirable don‘t come along every day. Be prepared to wait for the right coins at the right prices, and don‘t settle for inferior quality. Overpaying for mediocre coins is a sure way to get frustrated with the hobby.
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Learn grading. The more you can train your eye to detect the subtle differences between grades, the better you‘ll be able to assess a coin‘s quality and value. Consider taking a grading course or studying lots of professionally graded coins.
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Specialize and network. Attend coin shows and join collector clubs to meet other nickel enthusiasts, learn from their expertise, and find out about coins coming up for sale. Becoming a specialist in the series will give you an edge in acquiring the best pieces.
By following these tips and continually expanding your knowledge base, you‘ll be well on your way to building an impressive collection of rare and valuable nickels. Who knows – maybe one day you‘ll even be the proud owner of a 1913 Liberty Head!
Nickel Mintages and Populations
To help illustrate the rarity of some key date nickels, here are some tables and charts showing the original mintages and surviving population estimates for selected issues.
First, here‘s a table with mintages for the classic rarities mentioned earlier:
| Nickel | Mintage |
|---|---|
| 1913 Liberty Head | Unknown |
| 1918/7-D Buffalo | Unknown |
| 1926-S Buffalo | 970,000 |
| 1916 DDO Buffalo | Unknown |
| 1937-D 3-Legged | Unknown |
| 1939 Reverse of 1938 | Unknown |
The 1913 Liberty Head is not included in the official Mint records, and the exact mintage figures for the other varieties are unknown. The 1926-S has the lowest recorded mintage of any regular issue nickel.
Here‘s a chart showing the population data for those same coins in grades VF20 and higher across PCGS and NGC:
[Bar chart showing populations of rare nickels]As you can see, these coins are quite rare in any grade, with only a few hundred known for most examples. This scarcity, combined with strong collector demand, is what drives the high prices for these issues.
Frequently Asked Questions
To wrap things up, here are answers to some of the most common questions I get from collectors about rare and valuable nickels:
What nickels are made from silver?
During the years 1942-1945, the United States Mint used a 35% silver composition for nickels to conserve nickel for the war effort. These "war nickels" can be identified by the large mint mark over the dome of Monticello on the reverse. All other nickels are made from a 75% copper, 25% nickel alloy and contain no precious metals.
Which nickel has a buffalo on it?
The iconic Buffalo nickel, also known as the Indian Head nickel, was minted from 1913 to 1938. It features a portrait of a Native American chief on the obverse and an American bison on the reverse. This design by James Earle Fraser is considered one of the most beautiful and distinctively American coin motifs ever created.
How can I tell if my old nickel is valuable?
Start by examining the date and mintmark (if present) to determine if you have a scarce issue. Look for any signs of doubling or other errors that could indicate a rare variety. Consider the coin‘s condition – heavily worn coins will be less desirable than well-preserved examples. When in doubt, consult a price guide or have the coin evaluated by a knowledgeable dealer or collector.
What‘s the most expensive nickel?
The undisputed king of rare nickels is the 1913 Liberty Head. Only five examples are known to exist, and they routinely sell for millions of dollars when offered at auction. In 2013, one of the finest known specimens graded Proof 66 by PCGS sold for over $3.7 million. It‘s unlikely that this record for a nickel will be broken anytime soon.
Collecting Rare Nickels
In conclusion, collecting rare and valuable nickels can be a fascinating and rewarding hobby for numismatists of all levels. From the first Shield nickels to the classic Buffalo design to modern day varieties, these coins offer endless opportunities for study and appreciation.
By focusing on key dates, rarities, and high grade examples, you can build a collection that‘s the envy of other collectors and potentially a valuable investment as well. The key is to continually educate yourself, buy the best quality you can afford, and hold out for the truly special pieces.
I hope this guide has given you a solid foundation for collecting rare nickels and inspired you to start hunting for these treasures. Who knows what you might discover in that handful of change? Keep your eyes peeled and your reference books handy – happy collecting!
