1878 Proof

A second proof-only year followed. Philadelphia produced no circulation strike Shield nickels in 1878 for the same reason as 1877: depression-suppressed demand meant existing coins handled remaining commerce without need for new production. The proof is therefore the only available form of the 1878 Shield nickel and is mandatory for collectors building complete date sets. Proof mintage was 2,350 coins, the highest Shield nickel proof production of the decade and roughly four and a half times the 1877 figure.

The higher 1878 proof mintage reflects the absence of any circulation alternative. Collectors who wanted any 1878 Shield nickel had to buy the proof, and the Mint scaled production to meet demand at a level that had no precedent for the denomination. PCGS estimates approximately 1,900 survivors across all grades, with around 1,800 in PR60 or better and 700 at PR65 or better. The auction record is $4,830 for a PR67 sold by Heritage in July 2003, with the finest known being a PR67+ example.

The 1878 is the most available of the two proof-only Shield nickels and serves as the more accessible entry for budget-conscious collectors who need a proof-only representation in their set. PR64 and PR65 examples appear at every major auction, with prices reflecting both the proof-only status and the relative abundance compared to the genuinely rare proof dates such as the 1867 With Rays. Together the 1877 and 1878 form a unique two-year sub-category within the series, the only years when commercial Shield nickel production was suspended entirely while proof production continued without interruption.

Congress passed the Bland-Allison Act over President Hayes's veto in February 1878, requiring the Treasury to purchase between $2 million and $4 million of silver bullion each month and coin it into silver dollars. The act brought the silver dollar back after a five-year absence following the Coinage Act of 1873, but did nothing for the Shield nickel, which continued as a proof-only production for the year while the resurrected silver dollar entered commercial circulation.