United States coinage manufactured before 1965 contained a significant amount of the precious metal. Specifically, dimes, quarters, and half-dollars from this era were composed of 90% silver and 10% copper. This composition imparted intrinsic value to these circulating coins based on the fluctuating market price of the metal.
The presence of this high silver content provided a store of value beyond the face value of the coins. As the price of silver increased over time, these coins became more valuable as bullion than as currency. This led to widespread hoarding and melting of these coins, effectively removing them from circulation and highlighting their worth as a tangible asset.