Why Is The 1964 Kennedy Half-Dollar So Valuable?

Why is the 1964 Kennedy half-dollar so valuable? The 1964 Kennedy half dollar marks a pivotal moment in U.S. coinage history, which is why this 90% silver coin commands such a high premium among collectors and investors today.

If you’re short on time, here’s a quick answer to your question: The 1964 Kennedy half dollar is so valuable because it was minted in 90% silver during the last year before U.S. coins transitioned to mostly copper-nickel clads, making it the last of the classic 90% silver half dollars.

Scarcity Due to Short Minting Window in 1964

Transition from Silver to Copper-Nickel Clads

1964 marked a pivotal transition in U.S. coinage history as the U.S. Mint switched to creating copper-nickel-clad dimes, quarters, and half dollars for the first time. Up until then, all half dollars contained up to 90% precious silver.

But with the rising price of silver, the U.S. Mint was facing substantial losses converting silver into ready-to-circulate coinage.

So government officials decided to cut their silver losses. On March 23rd, 1964, the U.S. Congress approved legislation for clad coinage to replace silver coins after more than 170 years of tradition.

After the ruling, the U.S. Mint quickly shifted its focus to striking and stockpiling the new copper-nickel clads. So silver minting in 1964 was limited to only the first 5 months before the switch went into effect.

Only Half Dollars Struck in 90% Silver That Year

Out of all the newly clad coins for 1964, only the half dollars were created with precious silver – and even then, only for about 5 months. Dimes and quarters from 1964 onward contained no silver.

That short 5-month window is why 1964 Kennedy half dollars are the only 90% silver half-dollars minted after 1929. It also made 1964 the last year for circulation of 90% silver half dollars, adding to their scarcity.

Based on U.S. Mint records, approximately 433 million 1964 half-dollars were struck at the Philadelphia and Denver Mints before silver coinage halted in 1965. But surprisingly few 1964 halves circulated since many were scooped up by speculators during the coin transition and held onto.

Today, even worn “circulated” examples of the 1964 Kennedy Half command substantial premiums over face value due to silver value alone. Mint state examples certified MS-65 or higher can easily sell for $25-$50 or even more!

Significant Collector Demand

First Year of Issue for New Kennedy Half Dollar Design

The 1964 Kennedy half dollar was the first year the new design honoring the recently assassinated President John F. Kennedy was issued. This initial release makes the 1964 half-dollar highly sought-after by collectors and history enthusiasts (USA Coin Book).

Over 277 million were produced at the Philadelphia Mint that year.

As the inaugural issue with the new portrait designed by Gilroy Roberts, demand from collectors was exceptionally high in 1964. Many were eager to acquire a memento honoring JFK’s legacy. This significant interest contributed to the hoarding of uncirculated examples, making the 1964 half-dollar one of the most saved modern issue U.S. coins.

Popularity of JFK Memorabilia and Collectibles

The shocking death of President Kennedy created an unparalleled outpouring of grief and commemorations. Collectibles like JFK photos, magazines, books, stamps, plates, and other memorabilia remain popular over 50 years later. Coins and currency featuring Kennedy’s image have also seen ongoing demand.

As a meaningful keepsake of Kennedy’s presidency, the 1964 half dollar has maintained strong collector appeal over the decades. Many Americans remember exactly where they were when JFK was assassinated on November 22, 1963.

The 1964 coin issue allowed the nation to memorialize the president they tragically lost.

Silver Bullion Investment Value

Intrinsic Silver Value in Each Coin

The 1964 Kennedy half dollar contains 0.36169 ounces of 90% fine silver. With the current price of silver at around $20 per ounce, each 1964 half-dollar has an intrinsic silver value of about $7 (0.36169 x $20). This is much higher than their 50-cent face value.

When these coins were minted in 1964, silver prices were stable at around $1.30 per ounce. So at that time, the intrinsic silver value in each coin was only around 65 cents. But silver prices started rising strongly in the late 1960s and by 1980 had reached nearly $50 per ounce.

As silver became worth much more than face value, most 1964 Kennedy half dollars were pulled from circulation by the early 1970s to melt for their high silver content.

Silver Prices Have Risen Greatly Since 1964

Over the years since 1964, silver prices have seen some dramatic ups and downs but maintained an overall strong rising trend:

1964 – $1.30 per ounce (when 1964 Kennedy halves were minted)
1980 – $50 per ounce (peak of late 1970s silver boom)
2001 – $4.40 per ounce
2011 – $48 per ounce
2015 – $14 per ounce
2020 – $27 per ounce
Current – About $20 per ounce

So while silver traded under $5 per ounce for parts of the 1990s and 2000s, over the long run, silver prices have increased more than 15 times since the 1964 coins were made. This rising intrinsic silver value is the key reason 1964 Kennedy half-dollar coins are so valuable to collectors and investors today compared to their face value.

Grading and Quality Considerations

Better Condition Coins Command Higher Premiums

When collecting and investing in vintage coins like the 1964 Kennedy half dollar, the condition and grade of the coin play a huge role in its value. Coins that are in pristine, mint condition with no signs of wear or damage carry heavy premiums over those that saw some circulation before being preserved.

Professional coin grading services like PCGS and NGC assign numeric grades ranging from 1 to 70 to coins, with 70 representing a perfect specimen. Coins grading above MS-60 can sell for many times the value of more well-worn examples.

For the 1964 Kennedy half, an MS-65 coin may sell for $50 while an MS-67 can fetch $500 or more. The difference in eye appeal and rarity between those grades is immense.

Before selling a 1964 half-dollar, it’s a smart idea to have it certified and graded by one of the top services. This verifies the grade and rules out any potential counterfeits. Slabs from leading companies also provide long-term preservation and enable the coin to realize its full market value.

Finding Pristine Examples is Challenging

While 90% silver Kennedy halves from the mid-1960s can still be found with some searching, locating gems in grades above MS-66 is quite difficult. That’s because the 1964 issues saw heavy circulation early on, becoming worn and damaged in day-to-day commerce.

Additionally, the methods of striking coins 50+ years ago resulted in more contact marks and other imperfections versus today’s minting technology.

PCGS estimates there are just 600,000 MS-67 Kennedy halves from 1964 among the hundreds of millions originally made. That tiny surviving population in top grade puts downward pressure on availability and upward pricing pressure.

Collectors and speculators are willing to pay ever-higher premiums for pristine 1964 Kennedy half dollars as nice examples get locked away in vaults. Anyone lucky enough to own one of these lustrous, essentially flawless coins can consider it a blue chip holding with strong long-term value appreciation potential.