When Did US Coins Stop Being Silver?
Explore the definitive history of when silver was phased out of US circulating coins, impacting their composition forever.
The United States has a long history of incorporating silver into its circulating coinage. For many years, the intrinsic value of the metal in coins closely aligned with their face value. This tradition eventually gave way to significant changes in coin composition as economic realities shifted.
The Role of Silver in Early US Coinage
From the nation’s inception, silver played a central role in US coinage. The Coinage Act of 1792 established the U.S. Mint and outlined the production of coins using gold, silver, or copper. This act defined the dollar as the standard unit of currency, based on a fixed weight of silver. Early denominations, including dollars, half dollars, quarters, dimes, and half dimes, contained significant silver content.
Before the mid-20th century, US dimes, quarters, half dollars, and dollars were minted with 90% silver and 10% copper. This composition made them valuable not only for their face value but also for their precious metal content. The continued use of silver in circulating currency was a standard practice for over a century and a half.
The Coinage Act of 1965
The Coinage Act of 1965 fundamentally altered the composition of US circulating coinage. Signed into law on July 23, 1965, this act responded to a growing silver shortage and rising silver prices. The market value of the silver in coins began to exceed their face value, leading to widespread hoarding and melting of coins.
This legislation eliminated silver from dimes and quarters entirely. It also significantly reduced the silver content of the half dollar. The act aimed to ensure an adequate supply of circulating coinage and stabilize the monetary system by reducing reliance on a metal whose price was becoming volatile. The new coins were designed to have a clad composition, using less expensive metals.
Specific Coin Changes
The Coinage Act of 1965 brought immediate changes to the composition of several circulating coins. Dimes and quarters, which had been 90% silver, were no longer minted with any silver after 1964. From 1965 onward, these denominations transitioned to a copper-nickel clad composition. This new construction involved a pure copper core bonded between outer layers of 75% copper and 25% nickel, giving them a distinct copper edge.
The half dollar underwent a transition. While dimes and quarters became silver-free after 1964, the Kennedy half dollar continued to contain some silver. From 1965 through 1970, half dollars were minted with a reduced silver content of 40%.
The last year circulating half dollars contained any silver was 1970. After this period, the half dollar also transitioned to the copper-nickel clad composition, aligning it with the dime and quarter. For general circulation, the final year for 90% silver coins was 1964, and for any silver content in half dollars, it was 1970.
Modern US Coin Composition
Today, US circulating coins are made from base metals, unlike their historical silver content. Dimes, quarters, and half dollars are now composed of a copper-nickel clad material. This means they feature an inner core of pure copper, surrounded by outer layers made of an alloy of 75% copper and 25% nickel. This clad composition provides durability and a silvery appearance without relying on precious metals.
The nickel, a five-cent coin, has a different composition, consisting of 75% copper and 25% nickel throughout. Pennies, or one-cent coins, are primarily made of copper-plated zinc, with a core of zinc and a thin outer layer of copper. These material choices ensure the coins are cost-effective to produce and robust enough for daily use in commerce.