55 Years Since the Removal of Silver from Circulating Coinage
Due to the increasing price of silver during the 1960s, the intrinsic value of silver coins became higher than their face value. The sky rocketing price of silver coupled with new restrictions imposed on holding gold by Executive Order 10905 caused the public to begin hoarding silver coins. As result, the amount of silver coinage in circulation began to drastically decrease at an alarming rate. In fact, during this period of time, about $700 million worth of silver coins, or about one third of the total circulating silver coinage of the United States had been permanently removed from circulation. This left the United States with a severe shortage of coins.
To combat this, the U.S. Mint began striking a vast amount of silver coins. Although the mass production of silver coins managed to increase the circulating coinage, there was no way that the U.S. would be able to continue producing silver coins at such a rate. If the Mint continued to produce this quantity of coins per year, then the United States silver supply would be completely depleted by 1968. To prevent the National Stockpile of silver from depleting, the issue needed to be addressed from a different angle.
The United States Department of Treasury offered a solution to this problem, which was to completely remove the silver content from dimes and quarters while debasing half dollars to just 40%. The term debasing is defined as lowering the value of coinage by reducing the content of precious metal. As a result, President Lyndon B. Johnson signed the Coinage Act of 1965 on July 23rd, 1965, exactly 55 years ago today. Prior to this Act, dimes, quarters, and half dollars were each composed of 90% silver. With the silver content in the new coinage being debased, hoarding was effectively eliminated, and the coin shortage came to an end.
Since the passing of the Coinage Act of 1965, there has not been a more drastic change to the composition of American coinage. Today, the only American coins with silver in their composition are special release commemorative coins and bullion coins such as the American Silver Eagle.
Rare Collectibles TV offers a number of silver coins including:
1932-P Washington Quarter MS66
1964 Roosevelt Dime PF68 Ultra Cameo
