The Inevitable End of 1946-2011 Jefferson Nickel

The cost to produce the copper/nickel clad nickel is $0.0697 and rising. In other words, just like 90% silver coins and 95%/5% copper pennies, it's only a matter of time before the copper/nickel clad nickel will disappear from circulation. What the public fails to realize is that the re-examination of coin composition, not only in the U.S. but also across the world, reflects the growing pressures of hyperinflation. This disappearance of smaller denomination coinage from circulation is next.

U.S. Mint initiates process for major U.S. coinage overhaul

Basically, the Treasury Secretary and the U.S. Mint are conducting a major re-examination of minting and coinage laws.

For instance, the Mint now has the authority to research and test less expensive alloy alternatives for coins. Currently the Lincoln Penny and the Jefferson nickel cost more to produce than their corresponding face values. The Treasury Secretary is expected to address this situation under the auspices of the new act.

Source: mineweb.co.za