Why is a 5-cent Coin Called a Nickel?

The term 'nickel' has been used to refer to the 5-cent coin in the United States since the 1860s, but do you know why it is called that? Let's explore the history and the origin of this intriguing name.

The Composition and Name Origin

A 5-cent coin is known as a nickel because it is predominantly made of nickel. The coin has a unique composition that includes 75% copper and 25% nickel. This blend of metals not only gives the coin its distinctive color but also makes it different from the half dime which it replaced.

When the first five cent coins were introduced in the mid-1850s, they were made of an alloy containing 88% copper and 12% nickel, and were known as 'nickels.' Due to their whitish, silvery color, these coins were initially nicknamed 'nicks'

Historical Context

The term 'nickel' stuck over time, largely due to its ease of use. Before the modern nickel five-cent coin, there was the 'half dime,' a coin worth 5 cents that was made of silver. The half dime was the prevalent 5-cent coin before the introduction of the nickel.

During the Civil War era, the United States proposed and started circulating the new 5-cent coin. This led to a shift in the coin's nomenclature. Originally, a 5-cent coin was known as a 'half dime,' and even more historically, it was known as a 'half disme' (a coin worth half a 'disme,' an early spelling of 'dime').

The 1857 Nickel

In the mid-1850s, the United States produced the first nickel coin, a one-cent piece. Known as the 'Cent' or 'Nickel,' it was made of an 88:12 copper-nickel alloy. These coins presented a silvery appearance and were named 'nickels' due to their primary constituent metal.

The 1865 Innovation

Further, in 1865, the United States produced a three-cent coin made from 75% copper and 25% nickel. These were known as 'three cent nickels' to distinguish them from the one-cent nickel coins that had been recently discontinued.

The 1866 Nickel

In 1866, the five-cent nickel was introduced. At that time, it was considered a logical extension of the 'nickel' name given to the one-cent and three-cent pieces. Over the next decade, as the one-cent and three-cent coins faded from circulation (the one-cent coins turning dark and the three-cent coins declining in circulation), the 'nickel' became the common name for the five-cent piece.

The name 'nickel' became prevalent because it was easier to say 'nickel' than 'five-cent piece.' This simple, catchy name has stuck with us ever since, cementing its place in American coinage history.