Is the Nickel Next to Go?
With each nickel costing nearly 14 cents to produce, the Treasury considers material changes to reduce expenses without eliminating the coin.
President Donald Trump has decided that, due to the cost of minting our 1-cent coins, production of the denomination should be stopped. It now appears the 5-cent or nickel coin may be next. In a recent House Appropriations Committee hearing, U.S. Treasury Secretary Scott Bessent said, “The nickel costs more than a nickel to produce, but we are looking at a material change, material changes in the materials that would reduce the cost to or below a nickel.”
The cent's metal composition changed in 1982. The treasury secretary suggests that, rather than dumping the nickel, changing its metal composition might make sense. The purity of the silver in our dimes, quarters, and half dollars was altered several times before the composition of each of these denominations became copper-nickel as we now know it.
Circulation strike gold coins issued through 1933 are 0.900 fine, while modern gold coins have a purity of 0.9167 fine. Granted, modern coins are primarily bullion or commemorative, but change happens, so why not alter the metal content of the nickel? The composition of our 5-cent coin changed several times when it was a half dime, then again during World War II when what replaced the half dime was already nicknamed the nickel.
The bottom line still appears to be that the denomination is needed. Otherwise, Bessent might lobby to cease production completely. It could be worse. Look at the roller coaster ride the value of gold coins has been on recently, as the strength of the U.S. dollar has ebbed and flowed on world markets. Once again, will there be a change to our change?
You may also like:
