Struck by the United States Mint from 1865 to 1889, the Three Cent Nickel is a distinctive and intriguing piece of American coinage. Designed by US Mint Chief Engraver James B. Longacre, this coin was composed of 75% copper and 25% nickel. Although initially popular, its role in commerce was soon overshadowed by the five-cent piece, commonly known as the nickel. Uniquely, the Three Cent Nickel is one of the few US coins without an actual denomination, featuring the Roman numeral III on the reverse instead.
In the early 1860s, a sharp spike in the price of silver led people to melt silver coins for their intrinsic value, causing a shortage of low-value coins necessary for everyday transactions. To address this, banks and businesses began producing makeshift currency, including low-denomination paper currency and encased postage stamps. The federal government also issued fractional currency, including paper notes worth as little as three cents, which the public disliked and referred to as “shinplasters.”
In April 1864, the Coinage Act of 1864 was passed, changing the composition of the one-cent coin and authorizing the minting of a two-cent coin. Following this, Pennsylvania industrialist Joseph Wharton advocated for a three-cent piece in copper-nickel, proposing that all non-precious metal coins consist of 75% copper and 25% nickel. On March 3, 1865, Congress passed a bill for a three-cent piece in this alloy, which President Abraham Lincoln signed into law.
The initial release of the three-cent piece in 1865 was met with enthusiasm as it was considered more convenient than the larger two-cent bronze piece. However, the hard alloy caused many die breakages during production. The introduction of the five-cent copper-nickel piece in 1866 further decreased the popularity and usage of the three-cent piece. Although more than one million Three Cent Nickels were minted in 1881, a decline in postage rates in 1883 reduced the need for this coin. By 1886, no three-cent pieces were struck for circulation, and only a few proof coins were produced for collectors in the final years of its production.
Mint Chief Engraver James B. Longacre designed the Three Cent Nickel, featuring Lady Liberty wearing a coronet inscribed with "LIBERTY" and her hair bound with a ribbon. The reverse displayed the Roman numeral III encircled by a laurel wreath. In 1873, complaints about the digit "3" resembling an "8" led to a redesign by Chief Engraver William Barber, resulting in the "Close 3" and "Open 3" varieties.
Coin images sourced from: National Numismatic Collection, National Museum of American History
Due to its short-lived popularity, many Three Cent Nickels can still be found in almost pristine or uncirculated condition, which increases their value. However, compared to other early US coinage, these coins generally do not command high prices. Only about five varieties of the Three Cent Nickel have sold for over $1,000 in high grades:
Three Cent Nickels are favored by collectors because they are affordable and come from several mintage years that are easy to locate. Values for common dates range from $10 in good condition to over $100 in uncirculated condition. In some cases, Three Cent Nickels in Extremely Fine or Very Fine condition can be more valuable than proof versions from the same year. When determining the worth of your coin, it is advisable to seek the assistance of a numismatic professional such as the Professional Coin Grading Service (PCGS) and the Numismatic Guaranty Company (NGC).
The Three Cent Nickel is a unique piece of American coinage history. Despite its short-lived use in everyday commerce, its distinctive design and historical significance make it a fascinating addition to any coin collection. At Bullion Hunters, we provide expert advice and a wide selection of collectible coins. Visit our website or contact us today to explore our inventory and enhance your collection with these intriguing pieces of numismatic history.