How Much Do Nickels Cost to Make and What Are They Worth?
Uncover the multifaceted nature of a nickel's worth. This article explores its various economic definitions and true value.
The U.S. nickel is a familiar coin in daily commerce. Understanding its fundamental worth, production expenses, and material composition provides insight into the economics of coinage. This broader perspective helps clarify the actual cost associated with this common five-cent piece.
The Face Value
The official monetary worth of a nickel is five cents, or $0.05. This assigned value allows it to function as legal tender for transactions across the United States. As currency, the nickel facilitates everyday exchanges, contributing to the broader monetary system.
Manufacturing Cost
The United States Mint incurs a specific cost to produce each nickel, which has consistently exceeded its face value for nearly two decades. In fiscal year 2024, it cost approximately 13.78 cents to manufacture and distribute a single nickel. This production expense represents nearly triple the coin’s five-cent buying power.
The unit cost for nickels increased by 19.4% from the previous fiscal year, reflecting rising expenses. The comprehensive manufacturing cost encompasses several components, including the raw materials, labor, overhead expenses, and transportation. The materials and the initial production process alone account for about 80.5% of the total cost, roughly 11 cents per coin.
The U.S. Mint reported a negative seigniorage for nickels, meaning it lost money on their production. This loss amounted to $17.7 million in fiscal year 2024, although this was a significant reduction from the $92.6 million loss recorded in fiscal year 2023. Despite these losses, the Mint continues to produce nickels because they are essential for facilitating commerce and ensuring the availability of small change for transactions.
The Value of its Materials
The modern U.S. nickel is primarily composed of a cupronickel alloy, consisting of 75% copper and 25% nickel. This specific metallic blend has been the standard for the five-cent coin since 1866, with a brief exception during World War II. The selection of this alloy provides the coin with its distinctive silvery appearance and contributes to its durability in circulation.
The market price of these raw metals directly influences the “melt value” or intrinsic value of the coin. This melt value can differ significantly from the coin’s face value and fluctuates based on global commodity markets. For instance, as of August 2025, copper prices are around $4.43 to $4.51 per pound, while nickel ranges from approximately $6.70 per pound.
Despite the potential for a melt value exceeding the face value, it is illegal to melt U.S. pennies and nickels for profit. The United States Mint implemented this prohibition in 2006 to prevent individuals from exploiting the metal content and to avert coin shortages. Violations of this regulation can lead to substantial penalties, including fines up to $10,000, imprisonment for up to five years, or both, along with the forfeiture of the coins involved.
However, certain exceptions exist for modifying these coins, such as for educational, amusement, novelty, or jewelry purposes. These activities are generally permitted as long as the intent is not to profit solely from the metal’s intrinsic value. This distinction ensures that the artistic or creative use of coins does not undermine the integrity of the nation’s currency.