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Origin and history of nickel
nickel(n.)
whitish metal element, 1755, the name was coined in 1754 by Swedish mineralogist Axel von Cronstedt (1722-1765) from shortening of Swedish kopparnickel "copper-colored ore" (from which it was first obtained), a half-translation of German Kupfernickel, literally "copper goblin" from Kupfer (see copper) + Nickel "goblin, rascal, fool" (a pet form of masc. proper name Nikolaus.)
Jacob Grimm suggests this is from the source of nixie (and compare pumpernickel). Later German sources (Kluge, etc.) connect the German word to St. Nicholas and the customs surrounding his day in Germany (for which see Krampus). Also compare English Old Nick "the devil;" for which see Nick). Yet the earliest uses of the word are only for a fool or a contemptible person, not a supernatural creature. According to OED (2nd ed., 1989), the ore was so called by miners because it looked like copper but yielded none. Compare fool's gold meaning "iron pyrite."
The meaning "coin made partly of nickel" is from 1857, when the U.S. introduced one-cent coins made of nickel to replace the old bulky copper pennies. The application to the five-cent piece (originally one part nickel, three parts copper) is from 1883; silver half-dimes served for this in the earlier currency.
To nickel-and-dime (someone) "make or keep (someone) poor by accumulation of trifling expenses," is by from 1964 (nickels and dimes "very small amounts of money" is attested from 1893).
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