When Did Silver Dollars Disappear from Circulation in the United States?

There is a common misconception that silver dollars stopped circulating in the United States in the late 1960s. However, as we will explore, the timeline and story behind the circulation of silver dollars and half dollars in the United States is far more nuanced and interesting. Let's break it down to understand the truth behind these coins.

The Reality of US Half Dollars in Circulation

The assertion that the US half dollar stopped circulating in the late 1960s is a misconception. The Kennedy Half Dollar was minted for general circulation until 1986. In 1987, none were minted for circulation because demand was exceptionally low, and there was a large inventory of existing coins in storage. After this point, the production for regular circulation almost ceased until recent times. Coin enthusiasts and collectors have been able to procure these coins, but the general public has still encountered them in circulation. The misconceptions likely arise from the fact that many of these coins were predominantly minted for numismatics or as collectibles rather than for everyday use. In 2021, regular circulation production was resumed, indicating that there has not been a complete cessation of half dollar circulation.

There have been instances where Kennedy Half Dollars were used in commerce as recently as a few weeks prior to this discussion. These coins were accepted without hesitation at grocery stores, underscoring their continued relevance in the economy. Hence, it is clear that the claim that half dollars stopped circulating in the late 1960s is incorrect.

The Demise of Silver Dollars in Circulation

Now, let's address the silver dollars. Silver dollars have never been favored as regular pocket change. This is largely due to the co-circulating paper dollar bills, which remain the preferred choice for the majority of the population. It wasn't until the 1960s that people began carrying their coinage, and even then, it was more of an exception.

Despite this, the Silver Dollars did see a heyday in the early 1960s. I can remember purchasing a couple of Peace Dollars at face value in the early 1960s. However, these coins were not minted for circulation after 1935. The Silver Dollar era effectively ended in 1935. This was a transition period, as they were replaced by clad dollar coins such as those featuring Eisenhower, which began circulating in 1970.

The Silver Dollar Legacy

It's interesting to note that the production of silver dollars continued with small batches in bicentennial years in the 1970s. In 1975 and 1976, there were production runs of bicentennial coins. However, in 2002, the regular circulation of silver dollars solely for general use came to a halt with the introduction of commemorative sets.

Fast forward to 2019, larger production amounts of silver dollars were reintroduced, signaling a resurgence in their circulation. However, it's important to clarify that the Silver American Eagles, introduced in 1986 with the One Dollar denomination, are not officially considered 'silver dollars.' The denomination on these coins is misleading as they do not have the same historical and intrinsic value as the earlier silver dollars.

This story highlights the complexities of the minting and circulation policies of the US Treasury. While silver dollars are not as widely circulated as they once were, their historical importance and the potential for them to re-enter circulation continues to intrigue both collectors and numismatists.

Conclusion

In conclusion, the US half dollar and silver dollars have a rich and complex history. While the half dollar continues to have a presence in circulation, extending back to the 1970s and resuming in recent times, the silver dollar's story is tied to its replacement by clad dollar coins in the 1970s. The introduction of the Silver American Eagle in 1986 with its One Dollar denomination marked a shift but did not replace the older silver dollar coins.