Before nickel, silver was commonly used in making coins. However, in the years following World War I, the cost of silver rose dramatically. Nickel was cheaper and was being produced readily by Canada. It is also durable, resistant to oxidation, and attractive.
Nickel is malleable so coins can be struck to show the finest detail.
Coins made of pure nickel have a brilliant lustre and accurately reproduce the impression of the die. These coins retain their brilliance over long periods of service, and their high melting point make counterfeiting almost impossible. Nickel is the only common coinage metal which is magnetic, and this property provides a simple way of testing genuineness.