Buffalo Nickels: When Numismatic Value Obliterates Base Metal Content

The Metal Versus The Market: A Bullion Investor’s Perspective on Coin Value

Every collector’s dilemma: When does the metal inside outweigh the story stamped on its surface? Let’s explore the fascinating tug-of-war between melt value and numismatic premium through two legendary Buffalo Nickels – the enigmatic 1928-S “Two Feather” variety and the storied 1913-S Type 1. For serious collectors, understanding this dance between bullion math and collector passion isn’t just educational – it’s essential to mastering our craft.

The Harsh Reality of Base Metal Content

Purity and Weight: Cold, Hard Numbers

Buffalo Nickels (1913-1938) contain precisely 75% copper and 25% nickel – not a trace of precious metal. Each weighs exactly 5 grams, breaking down to:

• 3.75 grams copper (current spot ≈ $0.0095/gram)
• 1.25 grams nickel (current spot ≈ $0.017/gram)

Crunching these numbers reveals a sobering truth for metal-focused investors:

(3.75g × $0.0095) + (1.25g × $0.017) = $0.0356 + $0.02125 = $0.05685 melt value

Even in pristine mint condition, the raw materials in these historic coins barely exceed 5% of face value. For bullion stackers, this arithmetic instantly removes Buffalo Nickels from consideration – but oh, how they’re missing the real treasure!

When Numismatic Value Reigns Supreme

The 1928-S “Two Feather”: A Legend’s Premium

Our forum example showcases collector alchemy transforming base metal into gold. Despite the submitter’s CACG AU55 grade being lower than previous PCGS/NGC MS63 designations, the “two feather” attribution creates a staggering premium:

• PCGS AU55 “two feather” hammer prices: $400-$600
• PCGS MS63 regular 1928-S: $150-$250

This 200-400% multiplier over melt value demonstrates why true numismatists care more about strike characteristics than spot prices. The heated thread debate – whether vestiges of a third feather remain visible – proves how microscopic details can make fortunes.

The 1913-S Type 1: Rarity Trumps All

Similarly, the 1913-S Type 1 Buffalo Nickel commands awe regardless of grading fluctuations:

• CACG MS58 current value: ≈ $1,500
• Melt value equivalent: 26,364 nickels ($1,318.20 face value)

An eye-watering 1,135× multiplier over intrinsic value! Even with the submitter’s disappointing CACG 58 grade (down from PCGS 64), the numismatic premium remains astronomical. This isn’t mere collectibility – it’s historical significance made tangible.

Spot Price Irrelevance: Why Copper Charts Don’t Matter Here

While silver Eagles live and die by COMEX prices, copper/nickel coins dance to a different rhythm:

• Industrial metal volatility rarely exceeds 20% annual swings
• Refining costs outweigh potential scrap profits
• No secondary market for small-scale base metal recovery

Consider this: The 1913-S Type 1’s $1,500 collector value would require copper prices to soar 26,000% to match through melt alone. Mathematics confirms what collectors know in their bones – these coins transcend their metallic composition.

Collecting vs. Stacking: Two Philosophies, Two Approaches

The Bullion Investor’s Mantra

When evaluating through a pure metal lens:

• Purity Obsession: Seek .999 gold/silver, shunning alloyed coins
• Weight Worship: Maximize value per troy ounce
• Liquidity First: Prioritize instantly recognizable government bullion

By these measures, Buffalo Nickels fail spectacularly. Their magic lies elsewhere…

The Numismatist’s Guiding Stars

• Condition Crown: Original surfaces with blazing luster (the CACG 58’s “exceptional cartwheel effect” noted by submitter)
• Variety Virtuosity: Those precious “two feather” details commanding 300% premiums
• Provenance Passion: The submitter’s PCGS crossover dilemma for registry set glory

Grading Nuances: Where Science Meets Art

The forum’s vigorous debate exposes fascinating preservation realities:

• CACG’s exacting standards (comment: “MS should mean NO rub – period”)
• Market perceptions shifting between grading services
• Surface controversies sparking multiple “cleaned” designations

For investors, this underscores why numismatic mastery requires years of study – you’re not buying metal, you’re curating history.

The Final Word: Numismatic Gold in Base Metal Clothing

These Buffalo Nickels embody our hobby’s beautiful contradiction. While their metallic content barely buys a gumball, collector passion transforms them into crown jewels. The grading rollercoaster documented in the thread proves numismatic value exists in a realm beyond periodic tables – shaped by market consensus, attribution expertise, and preservation battles.

To bullion stackers: These coins deserve display cases, not melting pots. To collectors: The “two feather” mystique and 1913-S Type 1 legacy make them irresistible despite grading hiccups. As one sage forum member observed: “Some coins aren’t meant for tubes – they’re destined for velvet-lined trays under museum glass.” And in that exalted space, their true worth shines brighter than any bullion.

Related Resources

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