A United States ten-cent coin minted in 1964, composed of 90% silver and 10% copper, possesses an intrinsic value past its face worth. That is as a result of treasured steel content material of the coin itself. The value is thus depending on the present spot value of silver. For example, if silver trades at $25 per ounce, a calculation based mostly on weight and purity determines the steel worth.
The importance of those specific cash stems from a historic shift. Previous to 1965, dimes, quarters, and half-dollars contained this excessive silver composition. The Coinage Act of 1965 eradicated silver from dimes and quarters, changing it with a clad steel composition. Consequently, cash minted earlier than this transformation grew to become inherently precious resulting from their silver content material. This silver content material offers a tangible asset, providing a hedge in opposition to inflation and forex fluctuations, which is why it’s typically wanted.