Are Old Buffalo Nickels Worth Anything?
Discover if your old Buffalo Nickel holds hidden value. Learn what makes these classic coins sought after and how to assess their worth.
Discover if your old Buffalo Nickel holds hidden value. Learn what makes these classic coins sought after and how to assess their worth.
The Buffalo Nickel, also known as the Indian Head Nickel, holds a distinctive place in American coinage. Struck by the United States Mint from 1913 to 1938, this copper-nickel five-cent piece was designed by sculptor James Earle Fraser. While many of these coins often hold a value close to their face value, specific factors can significantly elevate the worth of certain Buffalo Nickels, making them highly sought after by collectors.
The value of a Buffalo Nickel beyond its five-cent denomination is determined by its date, mint mark, and the presence of any unique varieties or errors. The United States Mint produced Buffalo Nickels at three facilities: Philadelphia (no mint mark), Denver (D), and San Francisco (S). The mint mark is typically found on the reverse side of the coin, below the words “FIVE CENTS.”
Certain dates and mint mark combinations are rarer due to lower mintage figures. For instance, the 1913-S Type 2 Buffalo Nickel is scarce because only 1,209,000 were struck. The initial 1913 design was modified later that year to a Type 2 design with a recessed denomination, as the original design caused the “FIVE CENTS” denomination to wear away prematurely. Other low-mintage dates include the 1914-D, 1921-S, and 1926-S, with the latter having a mintage of only 970,000 coins.
Beyond mintage numbers, specific error coins and varieties attract collectors. The 1937-D “3-Legged” Buffalo Nickel is an error where excessive die polishing removed the front leg of the bison. Another variety is the 1916 Doubled Die Obverse, where the date “1916” appears distinctly doubled due to a minting error. This doubling is often visible to the naked eye. The 1918/7-D Overdate is another error, resulting from a 1917-dated die being overstamped with an 1918-dated hub. This overdate is identifiable by the faint outline of a “7” beneath the final “8” in the date.
The physical condition of a Buffalo Nickel impacts its market value, independent of its date or mint mark. Coin grading assesses a coin’s quality using the Sheldon Coin Grading Scale. This 70-point scale assigns a numerical grade, where 1 indicates a heavily worn coin and 70 represents a Mint State (MS-70) coin.
Wear patterns on specific features of the Buffalo Nickel are examined to determine its grade. For instance, the Indian’s braid and the buffalo’s horn and leg are areas prone to wear. A coin with significant wear in these areas receives a lower grade, while a coin retaining sharp details achieves a higher grade.
Common grades range from Good (G-4), where the coin has significant wear but major design elements are discernible, to Very Fine (VF-20), indicating moderate wear with clear details. Extremely Fine (EF-40) coins show only light wear, while About Uncirculated (AU-50) coins display minimal wear on the highest points but retain most of their original luster. Uncirculated (MS-60 to MS-70) coins show no signs of wear from circulation. Even within the uncirculated range, imperfections like contact marks or weak strikes can affect the specific numerical grade. A common date Buffalo Nickel can become valuable if it is in an exceptionally high grade, while a rare date can lose value if its condition is poor.
Once a potentially valuable Buffalo Nickel has been identified, obtaining a professional valuation is the next step. Self-assessment can be inaccurate, and expert opinion provides an unbiased evaluation. Professional grading services authenticate the coin and assign an official condition grade, which enhances marketability for buyers and sellers.
Several options exist for professional appraisal:
Local coin dealers can provide immediate, informal valuations and may offer to purchase the coin directly.
Professional grading services like PCGS (Professional Coin Grading Service) and NGC (Numismatic Guaranty Corporation) offer definitive authentication and grading. These services involve submitting the coin, often requiring an annual membership fee and a per-coin grading fee. Fees vary based on the coin’s declared value, plus handling and return shipping costs.
When considering selling a Buffalo Nickel, various avenues are available:
Local Coin Dealers: Offer quick transactions, but offers may be below market value due to dealer profit margins.
Auction Houses: Suitable for higher-value coins, providing access to a broader collector base and potentially higher prices. They charge commissions and fees, typically 10% to 25% of the sale price.
Online Marketplaces: Such as eBay or specialized numismatic websites, offer wide exposure. Sellers manage listings, photography, and shipping, and platform fees apply.
Coin Shows: Allow direct interaction with multiple dealers and collectors, facilitating competitive offers.
The sale of collectibles, including coins, for a profit is subject to capital gains tax. If a collectible is held for one year or less, any profit is taxed as ordinary income. For collectibles held for more than one year, the gain is considered a long-term capital gain and is taxed at a maximum rate of 28%. This rate is higher than typical long-term capital gains rates for other assets.