What Was the Last Year of Silver Coins?

The United States has a rich history of incorporating precious metals into its coinage, with silver serving as a standard component for many circulating denominations. This practice established a monetary system where the intrinsic value of the metal contributed significantly to the coin’s worth. Over time, economic shifts and changes in the market value of silver led to a reevaluation of this tradition, ultimately transforming the composition of U.S. coins.

The Final Year of Circulating Silver Coins

The year 1964 marked the last time the United States minted dimes, quarters, and half-dollars for general circulation with 90% silver. This change was driven by the rising market price of silver, which began to exceed the coins’ face value. To address this, the Coinage Act of 1965 was signed into law on July 23, 1965, altering the nation’s coinage system. This legislative action eliminated silver from dimes and quarters and reduced the silver content in half-dollars. Although dated 1964, some 90% silver coins continued to be struck into early 1966.

The Shift to Clad Coinage

The Coinage Act of 1965 introduced “clad” coinage. Dimes and quarters were now composed of a copper-nickel alloy. These new coins featured a layered structure, with a pure copper core bonded between outer layers of 75% copper and 25% nickel alloy, giving them a silvery appearance. This change prevented the melting of coins for their metal value and ensured a stable currency supply. Clad coins differed from their silver predecessors in weight, sound, and the visible copper edge, sometimes called a “copper sandwich.”

Exceptions and Later Silver Coinage

While 1964 marked the end of 90% silver for most circulating denominations, silver was not entirely absent from U.S. coinage. The Kennedy half-dollar, introduced in 1964 with 90% silver, continued to be minted with 40% silver from 1965 to 1970. This 40% silver composition had an outer layer of 80% silver and 20% copper clad to a core of 79% copper and 21% silver. The half-dollar transitioned to a fully clad composition, like the dime and quarter, starting in 1971. Beyond circulating coinage, the U.S. Mint produces special collector’s issues and commemorative coins containing silver, not intended for general circulation.

Why Silver Coins Disappeared from Circulation

When the melt value of silver in a coin exceeded its monetary denomination, it became economically irrational for individuals to spend them at face value. This led to widespread hoarding of silver coins by the public, effectively removing them from everyday transactions. The government’s efforts to maintain an adequate supply of coins were undermined, as silver coins were pulled from circulation for their metal content.