A Detailed Guide to Silver Content in U.S. CoinsAt publication,

Although many people understand that modern circulating coins no longer contain precious metal, the role of U.S. silver coins throughout the nation’s history remains both interesting and well worth examining.

Before the United States minted its own money, people used silver coins issued by foreign nations. The country later began making its own coins, and the relevant Acts established their stated purity standards. As often happens over time, however, changes followed, and later Acts altered the metal composition used in American coins.

This article examines the history of U.S. silver coins, considers several coins used before the U.S. Mint was established, and reviews later Acts and Executive Orders that gradually reduced—and eventually entirely removed—silver from U.S. coinage.

The U.S. Mint Starts Producing Silver Coins

Before the U.S. Mint was established through the Coinage Act of 1792, the silver coins in use came from several different places. Spanish dollars were especially common, in part because their silver content was notably consistent. Other circulating pieces included German thalers, British pounds, and coins made by individual states. For interested readers, Atlanta Gold & Coin had covered the history of coins used in the United States in an earlier article.

The Earliest Coins

Without a coinage system of its own, the new nation faced several difficulties, including too few coins recognized as legal tender for commerce. The young country needed a national currency. Under the 1792 act, the government Mint began making coins, al

though its beginning was gradual.

In the same year the United States Mint was constructed, it made 1500 silver dimes, though none entered circulation. During 1794 and 1795, the facility started striking silver dollars and half dollars. The first Flowing Hair Silver Dollars appeared in that initial year, along with silver half-dimes, dimes, quarters, and half-dollars.

One striking provision of this act was that anyone convicted of debasing U.S. silver or gold coins faced the death penalty.

The Fineness Question

The discussion begins with silver content in U.S. coins from the Mint’s earliest period. Coins struck then were 90% pure silver. That fineness, however, was not legal. The coinage act established the lawful fineness for U.S. coins at 89.24%.

Even so, the Mint was producing coins at .900 fineness. How could the U.S. Mint have allowed such a difference to go unnoticed?

Assayer Albion Coxe believed 89.24% silver was insufficiently pure. In his view, coins with purity below 90% could blacken through use and would also be hard to roll.

The Mint Director, David Rittenhouse, unexpectedly agreed to raise these coins’ precious-metal content. Thereafter, through 1965, U.S. coins contained silver at .900 fineness.

Pre-1965 Everyday Coinage

When this article was originally published, readers considering the purchase of junk silver likely knew that coins dated before 1965 carried meaningful silver content. Collectors may focus on the mint mark, minting errors, condition, and rarity, while those focused on a coin’s silver content generally do not place the same emphasis on those factors.

Accordingly, even when the condition of 1964 & earlier coins keeps them from being collectible, they can still be worth more than the article’s then-current coinage. Their melt value is greater because it is calculated by multiplying silver’s spot price by a coin’s weight and purity. The following showed how several such coins compared by silver content in U.S. coinage.

Pre-1965 90% Silver Coinage

Silver content remained high in most U.S. coins dated before 1965. The following coins struck before that point contained 90 silver:

• Draped Bust
• Capped Bust
• Seated Liberty
• 3-cent silver pieces
• Liberty Head “Barber” half dollars, dimes, and quarters
• Winged Mercury “Mercury” dime
• Washington Quarter (through 1964)
• Roosevelt Dime (through 1964)
• Standing Liberty Quarter
• Walking Liberty Half Dollars
• Franklin Half Dollars
• Kennedy Half Dollars (1964 only)
• Morgan Silver Dollars (1878-1904, 1921)
• Peace Dollars (1922-1935)

War Nickels

Although most U.S. coins made before 1965 contained 90% silver, exceptions existed. As expected, nickels were traditionally struck from their namesake metal. Less expected is that nickels contain only 25% nickel; the remaining 75% consists of copper.

During World War II, nickel and copper were needed in greater quantities for the war effort. For that reason, the composition changed from 1942 – 1945 and included 35% silver as well as copper and manganese.

Executive Orders 6102 and 2039

In 1933, the United States was deeply affected by the Great Depression. President Roosevelt

thought people were holding gold and silver as protection against difficult conditions. As a result, he signed Executive Order 6102 in April 1933. The order barred the hoarding of gold.

At publication, One month later, in March 1933, he signed Executive Order 2039. It prohibited hoarding not only of gold but also of silver. This second order ended the Mint’s practice of making silver dollars at 90% fineness by 1935. It did not entirely stop production of 90% silver coins, however. Half-dollars, dimes, and quarters continued to be struck at a purity of 90% silver.

The Coinage Act of 1965At publication,

By 1965, conditions in the United States had shifted substantially. Silver had become needed for industrial applications. Its price also began rising with new government programs, higher spending, and increased inflation rates.

People were holding onto half dollars largely because their silver content exceeded the coins’ face value. Along with other factors, this contributed to a shortage of coins in the United States.

At publication, These developments pushed silver’s value upward. The country was already incurring losses by continuing to make coins containing 90% silver. If production continued and silver’s price kept climbing, those losses would become still larger.

At publication, In light of the factors discussed above, Congress enacted the Coinage Act of 1965. The law lowered the silver content in half dollars from 90 to 40 silver percent. Half dollars were thereafter made with 80% silver cladding, or plating, surrounding a 21% silver core. Silver content remained in half dollars only through 1970.

At the same time, quarters and dimes were entirely debased of silver, leaving them with no

silver at all. Although general-circulation coins made after 1970 contained no silver, at the time described, 40% silver coins could be purchased directly from the San Francisco Mint.

The San Francisco Eisenhower silver dollar is best known for its 40% silver content, but quarters and half dollars made from 40% silver were also included in three-coin proof or uncirculated sets. The dates for San Francisco coins with silver content were listed as follows:

• Eisenhower Dollars – 1971-1974; 1976
• Kennedy Half Dollars – 1976
• Washington Quarters – 1976

At publication, Silver Bullion at Original Publication

When this article was originally published, silver bullion was presented as giving investors a strong opportunity to purchase silver coins with substantial purity. American Silver Eagles are 99.9% pure silver, exceeding the purity of earlier silver dollars. The program behind their production arose because U.S. leaders believed the nation’s large silver stockpile could serve a better purpose through minting silver coins.

President Reagan believed this approach would assist with balancing the budget. At the time of publication, the article described it as favorable for investors because American Silver Eagles had solid silver content compared with 90% U.S. coins.

Where High-Silver Coins Were Traded

When this article was originally published, readers who owned or hoped to acquire U.S. silver coins were directed to Atlanta Gold & Coin Buyers. The original article reported that Atlanta Gold & Coin offered both silver bullion and rare silver coins at excellent prices. It also stated that people interested in selling silver coins could expect fair, transparent pricing and responsive customer service. At publication, readers were invited to use Call us today to learn about silver coins and their possible meaning for a wallet, collection, or precious-metals portfolio.

At publication, Silver Bullion at Original Publication

When the article was originally published, silver bullion was described as offering investors a strong way to acquire newly minted silver coins with a high degree of purity. Silver Eagles are 99.9% pure silver, which is higher than earlier silver dollars. The program that resulted in their production began because U.S. leaders believed the country’s excessive silver stockpile should be put to better use by minting silver coins.

President Reagan believed the plan would help balance the budget. At the time of publication, the article characterized it as good news for investors because silver Eagles had increased silver content among U.S. coins.

Where High-Silver Coins Were Traded

When this article was originally published, readers who had, or wanted to obtain, U.S. coins with high silver content were directed to Atlanta Gold & Coin Buyers. The original article reported that Atlanta Gold & Coin offered silver bullion coins and collectible silver coins at excellent prices. It further stated that sellers could rely on fair, transparent pricing and responsive customer service.

When this article was originally published, readers were invited to use Call us today to learn about silver coins and their possible meaning for a wallet, collection, or precious-metals portfolio.