Why is a nickel worth less than a dime, when a dime is smaller?

Question

That always bothered me. Is there a reason, or is that just the way it is?

Answer 1

a nickel is made of less expensive metal than a dime, which is silver (or was).

Answer 2

The original silver coins were all based on the value of the silver in them, so they ranged in size from the silver dollar down to the silver five-cent piece. However, this was so small that people kept losing it through holes in their pockets or in other ways. That was when the nickel five-cent piece was born, but it had to be bigger because nickel metal is not nearly as valuable as silver. Later on, when the value of silver increased beyond the value of the coin made from it, the government switched to a nickel alloy for all of its coins. They kept the coin sizes, however, so the "nickel" stayed larger than the "dime". The coins are now worth what the government says they're worth, not the value of the metal in them.

Answer 3

A nickel is made of mostly nickel and a dime is made of mostly silver. Nickel is a cheaper metal than silver.

Answer 4

Because their value is defined, not intrinsic. We could also ask why a nickel is worth less than a hundred dollar bill when it weighs more.

Answer 5

As with some things in life, that's just the way that things are. And if that's the worst thing that you have to deal with, you are TRULY blessed!

Answer 6

It bothers me too! I have always wondered the same thing! Good question!