Certain US nickel coins have shown solid price trend appreciation over long periods of time. These rare nickels have always been popular with collectors, providing the impetus for sustained value growth. Here, we've highlighted a few US nickel coins having a bullish future, based on past performance.
A few months after the release of the Buffalo Nickel in early 1913, it was evident the date and denomination “FIVE CENTS” were wearing down too quickly. Engraver Charles Barber eliminated the mound and stood the buffalo on a straight line, creating a recessed area below the line where the “FIVE CENTS” was protected. Numismatists differentiate between the mound and straight line issues, calling them Type 1 and Type 2, respectively. The problem with the date wear was never resolved, resulting in a significant percentage of the 1.2 billion Buffalo Nickels not having readable dates.
The 1913-S Type 2 Buffalo Nickel is a glittering jewel in the eyes of collectors, as proven by the relentless price hikes with the march of time. As long as Buffalo Nickels are popular with the collector base, which is akin to saying forever, the 1913-S Type 2 will be in strong demand. All grades are attractive, but as with any valuable US coin, be sure to deal with a reputable seller. If the coin is encapsulated by any of the most highly regarded grading services (PCGS, NGC, ICG, or ANACS), a slew of buyers will aggressively jockey for the inside lane if you decide to sell.
The Year This Coin Was Minted...
The 16th Amendment to the U.S. Constitution took effect on February 25, 1913. The amendment, which allowed Congress "to lay and collect taxes on income from whatever source derived", was brought about due to the 1895 Supreme Court ruling forbidding a tax on income.
Anxious to leave Washington for the Christmas holiday, Congress voted to pass the Federal Reserve Bank Act on December 23. At the heart of the new system was the power of the Federal Reserve Board to control the supply of money by influencing the interest rates large banks charge one another for federal funds. Objectives of the Federal Reserve included maintaining stability of the nation's financial markets, avoid banking panics, and to strike a balance between private interests of banks and the centralized responsibility of government.
The 17th Amendment was also was enacted in 1913. Since the inception of U.S. Constitution in 1789, state legislatures selected two persons to represent state interests in the U.S. Senate. This amendment mandated election of Senators by the direct vote of state citizens.
The leader of the Indian Passive Resistance Movement, Mahatma Gandhi, was arrested in South Africa after marching with 2000 Indian miners demanding civil justice.
Henry Ford pioneered the moving assembly line concept, reducing car assembly time from 13 hours to six. Ford dropped the price of the Model T to $440, explaining "every time I reduce the charge for our car by one dollar, I get a thousand new buyers."
The Woolworth Building of New York City was completed in 1913. Rising to 57 stories, it was the tallest building in the world, holding this distinction until 1930. The construction cost of $13.5 million was paid for in cash by the company's founder, Frank Woolworth. The official opening occurred on April 24, with President Woodrow Wilson in attendance.
In 1937, an inexperienced Denver Mint employee improperly used an abrasive stick in an attempt to remove clash marks from a Buffalo nickel reverse die. In the grinding process, the bison's foreleg was removed, and coining was then resumed with the "repaired" die. Before inspectors realized the goof, a small quantity of "3-legged" nickels escaped into circulation.
From that moment to this very day, the 1937-D 3-legged variety has been one of the most desired Buffalo nickels, with a legacy of solid price advancements to prove it. The last several years has been especially good, as has the coin market in general. Buff collectors needn't fear overpricing, though, because if held long term, the 1937-D 3-legged variety has always moved higher and higher. Purchase only from a reputable source... many fakes exist.
The Year This Coin Was Minted...
By 1937, the threat of global war was becaming increasingly ominous. Adolf Hitler, the ruthless dictator of Nazi Germany, was becoming evermore aggressive, as was Italy's Benito Mussolini. In July, the warlords of Japan invaded and occupied large portions of China. Meanwhile, the bloody Spanish civil war entered its second year.
On the American home front, disillusionment, pacifism and isolationism, compounded by persistent economic woes, carried the day, despite President Franklin Roosevelt's best efforts to rally the public. In December, Japanese planes bombed the US gunboat Panay while it patrolled China's Yangtze River. Fearing a confrontation with Japan, a solid majority of Americans favored total US withdrawal from the Far East.
Other headlines from 1937 include the mysterious disappearance of aviatrix Amelia Earhart on a Pacific flight. Elsewhere, Margaret Mitchell won a Pulitzer Prize for her novel, Gone With the Wind.
Nazi rally in Nuremberg, Germany. Throughout much of the 1930s, while the US was mired in the Great Depression, military dictatorships in Germany, Italy, and Japan were busy preparing for war. Pacifism in the US and Great Britain helped enable the rise of the Axis powers, sowing the seeds for the most catastrophic conflict in human history
