The Future of the Nickel: Is It at Risk?

The saying “all it takes is a nickel” might become more significant soon.

Last year, after President Trump decided to phase out the penny—citing production costs that are about four times its worth—people are now raising eyebrows about the nickel, which has been around since 1866. Will it be next on the chopping block?

Initially, some penny advocates warned that removing it could lead to confusion and financial disorder. Surprisingly, the only real impact observed so far seems to be isolated incidents, like a penny shortage, as reported by USA Today.

What’s troubling now is the nickel, which has an even worse production-to-value ratio. Many experts think it might be the next coin to follow the penny’s fate.

“The main argument is that producing a nickel costs more than its face value, which—well, frankly—is pretty shocking,” noted an economist from Pepperdine University to USA Today.

In 2024, the cost to create a nickel reached 13.78 cents, leading to a loss of nearly 9 cents per coin, accumulating to about $85 million in total losses. For contrast, every penny minted that year cost 3.69 cents, resulting in a loss of $18 million.

This calculation considers the material used: a nickel is 25% nickel and 75% copper, while a penny primarily comprises zinc.

It seemed “natural” to discontinue the penny, but Robert Whaples, an economist at Wake Forest University, mentioned that there’s no significant push to eliminate the nickel, primarily because people still frequently use them for various transactions.

Interestingly, the U.S. Treasury issued only 113 million nickels in 2024, which is dwarfed by the 3.2 billion pennies produced.

Despite concerns over inflation and the nickel’s failing purchasing power, Smith from Pepperdine suggested it could be quite a while before the nickel is eliminated—possibly 10 to 15 years. “I think it’s bound to happen eventually,” he said, “but not immediately.”