What Years Are Silver Nickel Years?
Posted by Bullion Shark on Apr 17th 2024
Silver Nickel Years
Nickels may be just pocket change to most people, but coins from the silver nickel years are incredible rarities to coin collectors. If you have ever been curious about what years silver nickels were struck, wondered when did they stop making nickels out of silver, or what silver nickel years are, read on.
World War II and the Creation of Silver Nickels
World War II, which began on September 1, 1939 when Germany invaded Poland, was a watershed period for the entire world, including the United States. Its decision to intervene, which had been discussed for years, came the day after the attack on its forces in Pearl Harbor on December 7, 1941. It changed the course of the war and ultimately resulted in the triumph of the allied forces over the Nazi-led axis and most importantly in the victory of democracy over fascism.
The war, which began in Europe and was extended to Asia, had a global reach, with huge repercussions on American society and the U.S. economy too, including on our coinage. In particular, the extensive war mobilization effort necessitated the conservation of critical materials including copper and nickel that were used in armaments like tanks and in munitions. That meant that the composition of some of our minor circulating coinage, specifically the workhorse coins of American commerce - pennies and nickels, had to be changed.
Wartime Silver Nickel Years and History
Since not all collectors are familiar with what years nickels were made of silver, to learn when the special war-time nickels were issued and when they stopped being made, some history is useful.
For pennies, that resulted in the issuance of the only steel pennies ever struck, while for nickel, it resulted in another unique period for that denomination, namely, the release of 35% silver nickels. That happened towards the end of 1942 in October and continued through the end of 1945.
Nickel was important because it was used to make military armor stronger and to prevent rust and corrosion, while copper was used to make shell casings for munitions. Nickel production at the time averaged around a quarter of a billion per year, and nickels were being made of a mixture of 75% copper and 5% nickel as they had since 1866 when the denomination debuted. Pennies, which were made to the tune of about 1 billion a year at the time, were then made of 95% copper.
As a result, on March 27, 1945, the U.S. Congress passed Public Law 507, whose Title XII gave authority to the Treasury Department and the United States Mint to change the composition of nickels to 50% silver and 50% copper. So, the silver nickel years were after this law was passed.
But before implementing this important change in nickel composition, tests and experiments needed to be performed to see if coins made of the proposed composition would work in slot and vending machines that sold refreshments at factories and other locations. It turned out that there was a problem since copper and silver would not set off the mechanical reaction that was necessary for the machines to function without rejecting the coins as counterfeit.
It turned out that adding a small amount of manganese did the trick and allowed coins made of copper and silver to work in the machines. Since the law had given flexibility with respect to the composition of the new coins, officials decided that they would be made of an alloy that combined 56% copper, 35% silver and 9% manganese.
To help consumers distinguish the new silver nickels from the existing ones, a mint mark was placed above the dome of Monticello of the reverse of the coin. This included “P” mint marks for the Philadelphia Mint – something that had never been done before. This was especially important in 1942 when both types of nickels were made.
When Did They Stop Making Nickels Out Of Silver?
In 1942 regular nickels were already being produced and continued to be made at the mints in Philadelphia and Denver through the end of the summer. From October 8, 1942, the new nickels that included silver began to be struck at only the Philadelphia and San Francisco Mints.
Then from 1943 through 1945, the silver alloy nickels were made at all three branches of the U.S. Mint, continuing until December 1945. Production peaked in 1943 when over 270 million nickels were made just at the Philadelphia Mint. In 1946 production of regular alloy nickels resumed.
The appearance of these war-time nickels as they are known is also different from other U.S. nickels. When they are new and still in mint state condition that have a “dazzling silver brilliance” and their details are very sharp, according to Q. David Bowers.
But as they become worn, they become dull gray and much less attractive. And because of the presence of manganese in the nickels, they also often have a greasy feel to them.
What Silver Nickel Years Are Worth Money?
The amount of silver in the war-time nickels is pretty small. Factoring in the weight and purity, it amounts to 0.05626 ounces of silver per coin. At today’s spot silver of about $23 per ounce, that amounts to about $1.30 of silver per nickel.
Currently, MS60 examples are worth $6 to $8 for most of these nickels with 1944-S worth $10. Even in MS65 all are valued under $100, and only MS66 and MS67 examples are really scarce and valuable with some worth many thousands of dollars.
There are also three major errors, including 1943-P, 3 over 2 that is worth $135 in XF40, $325 in MS60, $600 in MS65 and $1,850 in MS68. Then there is 1943 with doubling especially on the eye that starts at $57 in XF40 and is worth thousands in high grades with full steps. Finally, there is 1945-P doubled die reverse. It starts out at $52 in XF40, reaches several hundred in lower mint state and a maximum of $20,000 in MS66 with full steps – the highest grade for that one.
With the benefit of the work of historians and numismatists, today we have reason to believe that while the issuance of silver nickels from late 1942 to the end of 1945 did help the war effort, it may not have been as critical as believed at that time.
That is because, as Mark Benvenuto explained in 2000 in The Numismatist, data suggests that a total of about 827,163 pounds of nickel may have been saved by the change to the different alloy. Yet that amount was not very significant statistically since the annual output of nickel produced in the U.S. at the time was around 300 million pounds.
Benvenuto suggests that the real reason for the war-time nickels might instead have been designed as a morale booster for the average American who could look at the nickels he received in change, note the mint mark on the reverse and the different color of the coins, and be reminded that everyone including the U.S. Mint was doing its part to help win the war.
Find All The Silver Nickel Years At Bullion Shark
For collectors silver wartime nickels remain popular items to this day. They can be collected at different levels with some interested in rolls of them in circulated condition others looking for a full set of all dates and mint marks in MS63. Still others collect individual dates in high grades.
Sources:
Q. David Bowers, A Guide Book of Buffalo and Jefferson Nickels (Whitman, 2017)
FAQ
What years were silver nickels made?
Silver nickels were produced during a part of World War II, specifically from mid-1942 through 1945.
Why were silver nickels made?
Silver nickels were minted due to a nickel shortage during World War II, as nickel was a critical material used in armor plating. To conserve nickel for the war effort, the United States Mint substituted part of the nickel content with silver.
How can I identify a silver nickel?
Silver nickels can be identified by the large mint mark placed above the dome of Monticello on the reverse of the coin. This mint mark is either a P (Philadelphia), D (Denver), or S (San Francisco). Also, silver nickels have a distinctive color due to their metal content.
What is the metal composition of a silver nickel?
Silver nickels consist of 35% silver, 56% copper, and 9% manganese. This composition gives them a slightly different color and weight compared to regular nickels.
Are all 1942 nickels made of silver?
No, not all 1942 nickels are silver. Only those produced later in the year have the silver content. Early 1942 nickels were made of the standard pre-war composition.
How much are silver nickels worth?
The value of silver nickels depends largely on their condition and the current silver market price. Generally, they are worth more than their face value, with prices typically ranging from $1 to over $10 for coins in exceptional condition or with full steps visible on Monticello.
How do I know if my 1942 nickel is silver?
Look for the large mint mark above Monticello on the reverse. If it has a P, D, or S above the dome, it is a silver nickel. Non-silver nickels from 1942 do not have this prominent mint mark.
What are the key dates for silver nickels?
While silver nickels are not known for having key dates due to their uniform reason for minting and large production numbers, collectors often seek nickels from each year (1942-1945) and from each mint (P, D, S) in high grades.
Can silver nickels still be found in circulation?
Yes, silver nickels can occasionally be found in circulation, but it's rare. Coin roll hunting or purchasing from a dealer or at coin shows are more reliable methods for acquiring them.
How should I store and care for silver nickels?
Store silver nickels in a cool, dry place. For individual coins, consider using acid-free paper holders, plastic holders, or coin flips. For larger collections, use coin tubes or albums designed for nickels to prevent tarnishing and damage.