how much is a nickel worth in 1923

[JoannaDella]

Hello there! That's a great question that really gets you thinking about how the value of money changes over time.

Of course, a nickel in 1923 was worth five cents. The more interesting part of the question, though, is what its purchasing power was back then compared to today. To figure that out, we look at inflation.

Based on the information provided, which points to using inflation calculators, we can determine the modern value. A nickel, or $0.05, in 1923 had the same buying power as about 90 cents today.

As one of the sources from the Federal Reserve Bank of Minneapolis explains, this calculation is typically made using the Consumer Price Index (CPI). The CPI tracks the average price changes for a basket of common goods and services over the years. So, while the coin was still just five cents, the amount of goods it could buy was significantly more than what a nickel can buy now.

In short, that five-cent piece from 1923 could purchase what would cost you around 90 cents in today's money.