Before the nickel was introduced, small silver coins called half-dimes were used as five-cent pieces.  After America was first discovered by Europeans, silver was plentiful so many American coins were made of silver, until the American Civil War when silver became scarce.  From this point on (and to this day) five-cent pieces were made with a copper-nickel alloy.

You would think that this was where the five-cent piece got the term “nickel,” but that isn’t quite the case.  The term was taken from the Indian cent panny which was made of copper-nickel, and during the Civil War, these pennies were called “nicks” or “nickels.”

In 1865 the three-cent piece was introduced and these were though of as the new “nickels.”  Then the first actual nickel – the Shield Nickel – was issued in 1866, and since, the term “nickel” has referred to the five-cent piece.

Shield Nickel (1866-1883)

This first five-cent nickel was designed by James B. Longacre.  Based on the previous two-cent pice, the obverse has the shield image, and on the reverse it has the number “5” in the center, surrounded by a circle of stars.  Originally, there were rays between the stars, but this presented minting problems so the rays were soon removed.

Liberty Head “V” Nickel (1883-1913)

Liberty Head “V” nickels were issued from 1883 to 1912, but in 1913 a mint official at the Philadelphia Mint illegally produced an unknown number of Liberty Head Nickels bearing the year “1913.”  Today, there are only five known genuine 1913 “V” nickels in existence, which makes them one of the most rare and valuable coins around.  There are, however, a very large number of counterfeits – so if you’re shopping for collectible nickels, be on the lookout for these – unless you want a counterfeit.

All five of the rare 1913 “V” nickels were owned by Colonel E. H. R. Green, whose mother was the famous American business woman, Hetty Green.  One of these rarities called the “Olsen specimen,” named after another owner, was auctioned for $3 million in 2003.  Another was bought by Legend Numismatics for $4.15 million – which is the second highest price for which a U. S. coin has been sold!

Another one of these rare nickels currently sits in the Smithsonian, another in the American Numismatic Association’s Money Museum, and the other three in private collections.

A Texan by the name of B. Max Mehl actually “discovered” these coins when he advertised in newspapers that he would pay $50 for one of them.  No one sold him one, but it was an advertising ploy to promote his “Star Rare Coins Encyclopedia and Premium Catalogue” anyway.  Despite this, numismatists still credit him for raising an interest in coin collecting. 

Buffalo Nickels (1913-1938)

While a mint official was illegally creating what would become some of the most saught after coins of our time, the Buffalo Nickel came into being.  The year was 1913 when this popular collectible coin was issued.

The design, created by James Earle Fraser, was comprised of the profile of a Native American on the obverse, and a Buffalo on the reverse.  Fraser designed the profile as a composite of three Native American chiefs: Two Moons, Iron Tail, and John Big Tree.  And the model for the American Bison was NYC’s Central Park Zoo’s “Black Diamond.”

This design has been a classic coin favorite, and for this reason, the Mint reissued the design for the 2001 Commemorative Buffalo Dollar as well as the 2006 American Buffalo Gold Bullion coin.

Jefferson Nickel (1938-2006)

The nickel we know today was designed by Felix Schlag and was minted from 1938 to today.  It features Thomas Jefferson on the obverse, and his famous Monticello estate on the reverse.

Wartime Nickels

The composition of nickels changed to 56% copper, 35% silver, and 9% manganese during wartime (from 1942 to 1945). 

Westward Journey Nickels 

The Mint released new nickels in 2003 that featured a portrait of Gilbert Stuart on the obverse, and a Native American Indian and a bald eagle on the reverse.  The reverse changed to two different designs in 2004 – one featuring Lewis and Clark’s expedition, and one featuring Lewis and Clark’s in their keelboat.  A new portrait of Jefferson dawned the 2005 nickels, which had two reverse designs:  the return of the buffalo as one and a portrayal of the Pacific Ocean with the words from William Clark’s diary upon reaching the Pacific, “Ocian in view! O! The Joy!” (with the word “ocian” corrected).

In 2006, we saw a new cast of Felix Schlag’s Monticello design on the reverse, and a new forward-facing Jefferson on the obverse – the first forward-facing portrait on an American coin.

Related posts:

1. Pennies: The Beginning of Official American Coinage
2. Dimes
3. The History of the Quarter
4. A History of Coin Collecting
5. Valuable Coins

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