/biz/ - Business & Finance

The United States ended the silver standard in 1965 primarily due to economic and fiscal considerations, including rising production costs, the depletion of silver reserves, and the need to manage the federal budget more effectively. The cost of producing silver coins, particularly dimes and quarters, was increasing over time. As the price of silver on the open market rose, the metallic value of the coins exceeded their face value. This led to a situation where people began to hoard and melt down silver coins for their intrinsic value, resulting in a shortage of circulating coins.

The Coinage Act of 1965, signed into law by President Lyndon B. Johnson, authorized the US Mint to begin phasing out the use of silver in coins. The act allowed for the production of copper-nickel clad coins for dimes and quarters, reducing their silver content to virtually zero. The 1965 act also authorized the issuance of new coins with different designs, including the Kennedy half-dollar, as part of the modernization effort. The Act also provided for a transition period during which both the older silver coins and the new copper-nickel clad coins would circulate simultaneously.

This period allowed the government to gradually withdraw silver coins from circulation. This marked the end of the silver standard in US coinage and a shift toward modern coinage materials that were less costly to produce. The change was intended to address practical economic and budgetary concerns while ensuring the continued availability of coins for everyday transactions. I wonder how many Americans were realizing how their money was being devalued right before their eyes.

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