Why the five-cent coin could disappear just as the penny did

The Future of Nickels and Pennies in the U.S.

Be mindful of your spare change—saving a few nickels might soon become a nostalgic gesture for future generations.

According to Philip Diehl, the 35th director of the U.S. Mint, the nickel could be the next coin to face discontinuation. Diehl explained that producing nickels remains a loss for the government. While changing the coin’s composition to materials like steel could reduce costs, it would not make production profitable.

Diehl, who led the U.S. Mint from 1994 to 2000 and played a significant role in launching the 50 States Quarter Program and the Sacagawea dollar, highlighted the financial challenges of minting nickels. Recent figures show it costs nearly 13.78 cents to make a single nickel—almost three times its face value. The current nickel is composed of 75% copper and 25% nickel.

With copper prices reaching new highs, the government is unlikely to accept further losses on nickel production, especially as digital payments become more prevalent and federal cost-cutting remains a priority.

The End of the Penny Era

After more than two centuries, the U.S. Mint produced its last batch of pennies on November 12, 2025. The penny, first introduced in 1793, was the Mint’s inaugural coin.

Reflecting on his tenure, Diehl noted, “I was probably the first U.S. Mint director to suggest eliminating the penny about 30 years ago. The penny has long been a disposable coin with little practical use in commerce. While physical currency has existed for around 4,000 years and is unlikely to disappear entirely, its convenience and privacy will always hold appeal.”

Gold as a Safe Haven Investment

Diehl also recommends that investors include tangible assets like gold in their portfolios. He supports the idea of purchasing gold bars, noting that Costco’s endorsement of gold as an investment is positive for the industry. While Costco typically sells small quantities that often sell out, Diehl’s organization supplies larger amounts to a different market segment.