Cost to Make the Nickel 2012
According to the United States Mint 2011 annual report, it costs 11.18 cents to mint one individual nickel. That means it costs 2.236 times the actual face value of the five cent coin.
The nickel is made of 75% copper and 25% nickel. Because of this Cupronickel (copper-nickel) metal composition, the nickel has a greater metal value than face value, meaning, every nickel is worth more in its metal weight than its face value. Because of this fact, the U.S. made it illegal to melt down the nickel.
Even with these melt laws in place, prudent commodity investors and hedge funds are purchasing nickels as a medium to long term commodities Cupronickel investment.
Since the The Coin Modernization, Oversight, and Continuity Act of 2010 calls for a research group to identify metal alloy composition changes for various expensive coins to mint, it is highly anticipated the penny and nickel will be made of steel to reduce mint production cost.
In the meanwhile, nickels are disappearing from circulation from the simple $100 nickel box to the $1 million bulk investor. Because of this, more nickels are being minted by the millions upon millions to offset the loss in circulation. This process cannot and will not continue with a change.