Silver’s Last Chance in the Eisenhower Silver Dollars
To commemorate the recently deceased former President and former general Dwight D. Eisenhower, Congress ordered the US Mint to begin production of a new dollar coin in 1971 – the first since the silver Peace Dollar was discontinued in 1935. Though many millions were produced, only a tiny fraction were minted with silver, making them attractive on rare coin projections for first-time and budget-challenged collectors, though they are not particularly rare. Gold coins were not in current circulation at this time, and both Peace and Morgan silver dollars were already scarce. This made the introduction of even a part silver coin very important news for collectors in the 1970s.
A particularly large coin, the Eisenhower dollar is over 38mm is diameter, in order to make the coin exactly twice as heavy as a similarly alloyed Kennedy half-dollar. Due to their large size and weight, the Eisenhower dollar was not readily accepted as a coin of commerce, though hailed by professionals and enthusiasts who purchase rare coins. Because of this, rare coin projections find that uncirculated and mint-condition coins are somewhat common. Moreover, the millions of coins that were released during the bicentennial years were collected at very high rates.
Also in 1971, silver was eliminated from the Kennedy half dollar coin, which had been reduced to 40% after the 90% silver edition issued in 1964 only. The dictate from Congress called for the creation of up to 150 million silver coins, though only a small percentage of these were actually created. These unique silver-clad dollars were minted with an 80% silver (20% copper) alloy, around a silver-copper alloy center of lower purity. This results in a whole coin with an average purity of about 40% silver.
While the nickel and copper clad copper Eisenhower dollars were produced by the Philadelphia, San Francisco and Denver mints, only the San Francisco mint actually struck silver examples of these coins, most sold in proof and uncirculated condition. Sometimes referred to as the “blue” or “brown” Ikes, in reference to the packaging that the uncirculated and proof-condition coins came in. Rare coin investments for numismatic value are increased with the original protective cases issued by the mint.
As with several other coins of the time (including the half and quarter dollar coins), the Eisenhower dollar, both the nickel and silver-clad types, received a new reverse design. Here, the Apollo 11 lunar landing motif was replaced by a hybrid design of the Liberty Bell and the full moon. Both coins made in 1975 and 1976 were dated 1776-1976, and as such, there are no 1975 dollars.
Though over half a billion of the Eisenhower dollars were minted (with about 200 million in the bicentennial issue) between 1971 and 1978, they never quite caught on as a coin of commerce. They were most famously used in Las Vegas, due to their now uncommon weight and unusually large size that kept them from circulating freely elsewhere. The silver-clad Eisenhower dollars were minted until 1976, only.
With gold nearing $1,000 per once, the melt value of these relatively common coins (over $4 per coin) make them attractive for investors seeking “junk silver” to buy. Rare coins from earlier eras tend to suffer less melting, simply because they have already gone through a round of melting and are now worth far more as numismatic pieces.
Proceeds from the sale of the silver Eisenhower dollars were donated to the private and ultimately doomed Eisenhower College in Upstate New York. It is interesting to note that the 1973 issue of the Eisenhower dollar was especially small and continues to be the date most commonly focused on in most rare coin projections.
Clint Faust
March 24, 2009
