Are Your Buffalo Nickels Worth Anything?

The Buffalo Nickel, also known as the Indian Head Nickel, is a five-cent coin produced by the United States Mint from 1913 to 1938. While many of these coins are common, certain factors can increase their worth for collectors. Understanding characteristics that differentiate common from valuable Buffalo Nickels helps assess their potential.

Identifying Your Buffalo Nickel

The Buffalo Nickel features distinctive designs by sculptor James Earle Fraser. The obverse displays a portrait of a Native American. The portrait is accompanied by the word “LIBERTY” and the coin’s date.

On the reverse, an American bison stands prominently. The denomination “FIVE CENTS” is located below the bison. The coin is composed of 75% copper and 25% nickel.

Mint marks are located on the reverse, centered under the “FIVE CENTS” inscription. A “D” signifies the Denver Mint, and an “S” indicates the San Francisco Mint; coins from the Philadelphia Mint have no mint mark. The original 1913 design, known as Type I, featured the bison on a raised mound, leading to premature wear on the “FIVE CENTS” lettering. Later in 1913, a revised Type II design recessed the denomination to protect it from wear.

Factors Influencing Buffalo Nickel Value

A coin’s condition, or grade, is important in determining its value. Professional grading scales (Poor to Uncirculated) assess wear and preservation. For instance, a “Good” condition coin has a faint date, while an “Extremely Fine” coin shows a bold date and clear details on the Native American’s hair and the buffalo’s fur. Uncirculated coins, showing no wear or loss of luster, command the highest prices.

The date and mint mark combination impacts a Buffalo Nickel’s rarity. Lower mintage figures from certain years and mint locations make them scarcer and more desirable. For example, the 1913-S Type 2, 1913-D Type 2, 1914-D, 1921-S, 1924-S, and 1926-S are considered key dates due to their limited production. The 1926-S, for example, had a low mintage, making well-preserved examples valuable.

Varieties and errors from minting anomalies can increase a coin’s value. The 1937-D “3-Legged” Buffalo Nickel is a notable error from over-polishing of the die removing the buffalo’s front leg. The 1916 Doubled Die Obverse (DDO) shows doubling of the date from a misalignment during striking. Other errors include the 1918-D 8 over 7 overdate, with an underlying “7” visible beneath the “8” in the date, and various repunched mint marks (RPMs). These mistakes are sought after by collectors.

How to Evaluate Your Buffalo Nickel

Proper handling is important before evaluating any coin; always hold it by its edges to avoid transferring oils or dirt from your skin, which can damage the surface. Cleaning a coin is not recommended, as it can diminish its numismatic value. A magnifying glass can help reveal intricate details and potential errors.

Begin by locating the date on the obverse and the mint mark on the reverse, under the “FIVE CENTS” inscription. Once identified, compare your coin to images of known key dates and varieties. Pay close attention to areas prone to wear, such as the Native American’s braided hair, the buffalo’s horn, and its leg details, to estimate the coin’s condition. For specific error coins, examine features like the buffalo’s legs for the 1937-D “3-Legged” variety or the date for doubling on the 1916 DDO.

Consult reputable coin price guides, such as the “Red Book,” or online databases from numismatic organizations. These resources provide value ranges based on date, mint mark, and condition grades. Cross-referencing with online forums and image galleries can assist in identifying subtle characteristics. For a more informed opinion, consider visiting a local coin dealer who can offer an initial appraisal.

What to Do With a Valuable Buffalo Nickel

If you believe your Buffalo Nickel holds significant value, professional authentication and grading are important steps. Services like Professional Coin Grading Service (PCGS) or Numismatic Guaranty Corporation (NGC) authenticate, grade, and encapsulate coins in secure holders. This enhances buyer confidence and maximizes the coin’s market value.

The cost for professional grading varies based on the coin’s declared value and the desired turnaround time, ranging from $20 to over $150 per coin. For example, PCGS charges around $23 for coins valued up to $300, and $40 for coins up to $2,500. This investment is worthwhile for coins with significant value.

When selling a valuable coin, several options are available. Selling to a reputable coin dealer offers a quick transaction and immediate payment, though dealers purchase coins at a discount (e.g., 60-80% of retail value) to ensure their profit margin. Auction houses can yield higher returns for rare, graded coins, but they charge seller’s fees, ranging from 10% to 25% of the sale price, and the process can take longer. Online marketplaces provide broad exposure, but sellers should account for platform fees and ensure secure shipping and payment methods.

It is important to understand the tax implications of selling valuable collectibles. The IRS classifies coins as collectibles, and any profit from their sale is subject to capital gains tax. For coins held for more than one year, long-term capital gains on collectibles are taxed at a maximum rate of 28%, which is higher than the long-term capital gains rates for other investments. Short-term gains, from coins held one year or less, are taxed at ordinary income tax rates.

Taxpayers should consult IRS Publication 550, “Investment Income and Expenses,” for guidance on reporting these gains. Maintaining accurate records of the coin’s purchase price and any related expenses is important for determining the cost basis and calculating the taxable gain.