Rare Nickels Worth Money: An Expert Guide to Collecting & Investing

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As a lifelong coin collector and numismatic scholar, I‘ve had the privilege of handling some of the rarest and most valuable nickels in existence. From the legendary 1913 Liberty Head to the elusive 1926-S Buffalo, these seemingly humble five-cent pieces represent the pinnacle of 20th-century coinage.

In this in-depth guide, I‘ll share my expertise on collecting and investing in rare nickels. We‘ll explore the fascinating backstories of the most prized specimens and learn how to identify and grade them like a pro. I‘ll also provide insider tips for building a world-class collection and maximizing your investment potential in this red-hot market.

Whether you‘re a seasoned collector or just starting your numismatic journey, read on to discover the incredible world of rare nickels and how you can stake your claim in this exciting treasure hunt.

The Four Eras of Nickel Coinage

Nickel coins as we know them were first struck in 1866, but the five-cent denomination dates back to 1794 with the half disme (an early spelling of "dime"). In their 150+ year history, nickels have spanned four distinct design eras:

Series Years Minted Composition Diameter Notable Rarities
Shield Nickel 1866-1883 75% copper, 25% nickel 20.5mm 1877, 1878, 1880
Liberty Head "V" Nickel 1883-1913 75% copper, 25% nickel 21.2mm 1885, 1886, 1912-S, 1913
Buffalo (Indian Head) Nickel 1913-1938 75% copper, 25% nickel 21.2mm 1918/7-D, 1926-S, 1937-D 3-Legged
Jefferson Nickel 1938-Present 75% copper, 25% nickel (35% silver 1942-1945) 21.2mm 1939-D, 1950-D, 1955 Doubled Die

Each series boasts its own key dates, rare varieties, and storied rarities. Next we‘ll meet some of these fabled coins and unlock the secrets of their enduring value.

The "King" of 20th Century Coins: 1913 Liberty Nickel

No coin in numismatics is more legendary than the 1913 Liberty Head nickel. With only five examples known, owning one is the ultimate badge of honor for any collector.

The coins were allegedly struck in secret at the Philadelphia Mint in 1913, the year after the Liberty Head design was officially discontinued. Precisely how and why they were made remains a subject of debate. Some claim they were illicitly struck by a Mint employee, while others believe they may have been pattern coins for a proposed design.

Regardless of their origin, 1913 Liberty nickels have become the stuff of collecting legend. They seldom appear at public auction, but when they do, they command astonishing prices. In January 2014, the finest known specimen graded Proof-66 by PCGS sold for $3,290,000. A few years later in August 2018, it crossed the auction block again, this time fetching a jaw-dropping $4,560,000 – the second-highest price ever paid for any coin.

For collectors who can‘t afford the multi-million dollar price tag of a 1913 Liberty, there are still plenty of other rare and valuable nickels to pursue. Next we‘ll explore some of the most prized dates in the Buffalo and Jefferson series.

Collecting Buffalo Nickels: The "Hobo Nickel" and Other Rarities

Minted from 1913-1938, Buffalo nickels are cherished by collectors for their classic Native American and bison design. The series is loaded with scarce dates and varieties, some of which rank among the most valuable nickels ever struck.

Buffalo Nickel Mintage Record Auction Price Graded
1913-S (Type 2) 1,209,000 $143,750 MS65
1918/7-D Unknown $350,750 MS65
1926-S 970,000 $322,000 MS65
1937-D 3-Legged Estimated 10,000-20,000 $179,250 MS66

Sources: PCGS CoinFacts, Heritage Auctions

The rarest non-error date is 1926-S, with a mintage of just 970,000. Even low-grade circulated examples can sell for hundreds, while gem uncirculated specimens routinely bring over $100,000 at auction.

The undisputed king of Buffalo nickel errors is the 1918/7-D overdate. Created when a 1917-dated die was repunched with an "8" for 1918, these coins are rare in any grade. In 2006, a specimen graded MS65 by PCGS realized an astonishing $350,750.

Equally legendary is the 1937-D 3-Legged Buffalo. The result of an over-polished reverse die that erased part of the bison‘s foreleg, these error coins turn up at a rate of about 1 for every 5,000-10,000 regular 1937-D nickels. In high grades they can easily fetch six-figures.

Beyond these headline-grabbing rarities, astute Buffalo nickel collectors can still cherrypick rare doubled dies, overdates, and repunched mintmarks in circulation. PCGS CoinFacts lists over 175 known die varieties for the series. Arm yourself with a copy of The Cherrypickers‘ Guide and see if you can pluck one of these hidden gems from pocket change!

Another popular way to collect Buffalos is as "Hobo nickels" – coins that have been hand-carved with fanciful designs. During the Great Depression, homeless travelers would alter the bison‘s portrait into caricatures and sell them for a few cents. Today original 1930s Hobo nickels are highly collectible folk art, with choice examples selling for thousands.

Jefferson Nickels: Wartime Silver and Strike Rarities

Introduced in 1938 and still struck today, Jefferson nickels are the most familiar to modern collectors. But don‘t let their apparent abundance fool you – this series still has its share of rare and valuable dates.

Jefferson Nickel Mintage Record Auction Price Graded
1939-D 3,514,000 $16,450 MS67 FS
1942-D/D Unknown $33,600 MS67 FS
1949-S/D Unknown $10,925 MS67 FS
1950-D 2,630,030 $10,753 MS67+ FS

Sources: PCGS CoinFacts, Heritage Auctions

The most universally recognized key date is 1950-D, with a relatively low mintage of 2.6 million. Even heavily worn examples sell for $20+, while superb gem full steps specimens routinely realize over $10,000.

Another rare issue is 1939-D, the first Jefferson nickel struck at the Denver Mint. Well-preserved examples with five full steps on Monticello are especially coveted, with PCGS MS67 FS coins selling for over $15,000.

Astute collectors also prize the 1942-1945 "wartime" nickels. To conserve nickel for the war effort, these issues were struck in a distinctive 35% silver alloy. They‘re immediately recognizable by the large mintmark above Monticello on the reverse.

Exceptional wartime silver nickels can command substantial premiums. In November 2013, a 1943-P graded MS68 Full Steps by PCGS sold for $24,675. Meanwhile, major errors like the 1943 3-over-2 overdate and 1945-P "Double Monticello" fetch five-figures in high grades.

For doubled die aficionados, the king of the Jefferson series is 1955 Doubled Die Obverse. Dramatic doubling shows in the date, lettering, and Jefferson‘s eye. PCGS estimates just 400-500 survive, and MS64 examples have sold for over $30,000.

Tips for Collecting Rare Nickels

Now that you‘ve met some of the most sought-after rare nickels, how do you go about collecting them? Here are some expert tips:

  • Study variety references: Knowing exactly what to look for is half the battle in rare coin collecting. References like The Cherrypickers‘ Guide, Fivaz-Stanton Variety Compendium, and Wexler Die Varieties can help you attribute rare errors and varieties.
  • Focus on quality: Rare coins are most desirable in high uncirculated grades. Become a student of the numeric Sheldon grading scale and learn to accurately assess surfaces, strike, luster, and eye appeal.
  • Get certified: For important purchases, stick to coins graded by reputable third-party services like PCGS, NGC, ANACS, and ICG. They‘ll authenticate your coin and assign an impartial grade that can make a huge difference in value.
  • Pay for true rarity: While grade is critical, a coin‘s absolute rarity is paramount. Don‘t be afraid to pay up for truly rare issues like the 1926-S Buffalo or 1955 Doubled Die Jefferson. There simply aren‘t enough to satisfy collector demand.
  • Cherrypick "raw" coins: The real thrill of collecting is finding a rare variety in a dealer‘s bargain box or inheriting it in Grandpa‘s cigar box. Examine raw coins carefully – you may just score the discovery of a lifetime!
  • Check authentic issuing errors: Many 20th century errors were actually detected and released by the U.S. Mints. These "issuing errors" were saved in government vaults and occasionally traded to collectors. Always check a variety reference to confirm an authentic issuing error.

Investing in Rare Nickels

Beyond their numismatic charm, rare nickels can be a powerful way to diversify your investment portfolio. Over the past decade, the market for rare U.S. coins has exploded – outpacing even the booming stock market.

A 2019 report by the Luxury Investments Index found that rare U.S. coins appreciated 12% per year on average between 2008-2018, compared to 11% for the S&P 500. What‘s more, coins show low volatility and correlation to stocks and bonds, making them an ideal hedge.

Of course, past performance is no guarantee of future results, but there‘s no denying rare coins‘ power as a wealth preservation tool. Nickels by nature are still an affordable way to dip your toes into this market.

As with any investment, due diligence is key. Here are tips for investing wisely in rare nickels:

  • Get educated on rarity, grading, pricing, and authentication. Knowledge is power in numismatics!
  • Set a collecting focus and invest in a series and grade range you know well.
  • Only buy authenticated coins from reputable dealers. Avoid inflated grades and counterfeit hallmarks.
  • Diversify your holdings with a mix of rare dates and varieties in different grades.
  • Be patient! Treating rare coins as a long-term hold allows time for them to appreciate.

If you‘re considering buying rare nickels specifically for investment, I recommend focusing on:

  • Classic key dates and rarities like 1880 Shield, 1885 Liberty, 1926-S Buffalo, 1939-D Jefferson, etc.
  • Major errors and varieties like 1918/7-D Buffalo, 1943/2-P Jefferson, etc. that are always in demand
  • Superb gem uncirculated and proof examples that "pop" for eye appeal and technical quality
  • Coins with strong provenance like from major "name" collections or old-time hoards

Building a world-class rare nickel set is a lifetime pursuit – enjoy the journey as much as the destination!

Final Thoughts

As we‘ve seen, rare nickels represent some of the most fascinating and desirable issues in all of U.S. coinage. From the "aristocrat" 1913 Liberty nickel to the forever-popular Buffalo series and conditionally challenging Jeffersons, there‘s no shortage of challenge for collectors of all budgets.

By arming yourself with knowledge, developing an eye for quality, and practicing patience, you can assemble a rare nickel set that will be the envy of collectors and a potential windfall for your heirs. Whether you‘re in it for pure numismatic pleasure or as a way to grow and preserve wealth, rare nickels have stood the test of time as a blue-chip collectible.

I hope this guide has opened your eyes to the incredible world of these coins. Now get out there and happy hunting! Who knows – maybe you‘ll find the next 1913 Liberty or 1918/7-D Buffalo in pocket change…

Sources & Further Reading

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