With the Penny Gone, Should You Start Stocking Up on Nickels?

The U.S. has done away with the one-cent coin, shifting focus to the next-lowest denomination.

Published on Feb. 8, 2026

Got story updates? Submit your updates here. ›

The U.S. Mint has stopped producing pennies due to factors like high manufacturing costs and lack of use, leading to a decline in circulation. This has resulted in retailers rounding transactions to the nearest nickel, raising questions about the future of the nickel. While the nickel is also costly to produce, experts suggest it may take longer for the nickel to be phased out, as people are still willing to pick up nickels they find on the ground.

Why it matters

The potential phasing out of the nickel could have significant implications for consumers, retailers, and the U.S. Mint. It would mark another shift in the country's currency landscape and require adjustments in how people handle their daily transactions.

The details

The U.S. Mint's data for fiscal year 2024 shows it costs nearly 14 cents to make a nickel, making it the only other cent besides the penny that the U.S. lost money on that year. With pennies harder to come by, retailers have started rounding transactions to the nearest nickel, which may not be enough to save the nickel. Experts suggest the nickel could be targeted for changes, such as altering its composition or even ending production, but this would require congressional action.

  • In 2025, the U.S. did away with the one-cent coin, the penny.
  • In fiscal year 2024, the U.S. Mint data showed it cost nearly 14 cents to make a nickel.

The players

Robert Whaples

A professor of economics at Wake Forest University.

Scott Bessent

The U.S. Treasury Secretary.

Mark Weller

The executive director of the pro-penny group Americans for Common Cents.

Got photos? Submit your photos here. ›

What they’re saying

“It's actually a little easier to get rid of the nickel.”

— Robert Whaples, Professor of Economics (Nexstar)

“Efforts were underway to determine how to lower the cost of nickel production.”

— Scott Bessent, Treasury Secretary (CNN)

“Changes could be made to bring the cost of nickel production closer to 5 cents.”

— Mark Weller, Executive Director, Americans for Common Cents (CNN)

What’s next

There is a bill in Congress that calls for the production of the nickel (and the penny) to be suspended. It was referred to the House Committee on Financial Services in December.

The takeaway

The potential phasing out of the nickel highlights the ongoing challenges faced by the U.S. Mint in maintaining an efficient and cost-effective currency system. As the country continues to move away from physical cash, the future of low-denomination coins like the nickel remains uncertain.