By CoinWeek…
The 1964 Special Mint Set (SMS) coins constitute one of the most mysterious and technically unique issues in modern United States numismatics. They are not to be confused with the widely produced 1964 Proof Sets or the subsequent official Special Mint Sets issued between 1965 and 1967. The 1964 SMS pieces are classified as highly specialized Specimen Strikes—trial or presentation coins—distinguished by their specific production methodology and extreme rarity. Their existence provides vital information about the United States Mint’s transitional efforts during the severe coinage crisis of the mid-1960s.
Many collectors and members of the general public have heard about these coins, thanks to the publicity and high prices that accompany their infrequent public auction appearances; however, these news stories often fail to explain what the coins are, why they are so valuable, and why you most likely do not have one.
Let’s start by answering the question: Why were 1964 Special Mint Set coins made?
Researchers believe 1964 Special Mint Set coins were likely produced as small-volume trial or preparatory strikes in late 1964 or early 1965. The Mint produced these strikes in anticipation of its new SMS program (1965–1967), for which it aimed to produce non-Proof, high-quality collector coins for the public, while discontinuing its annual Uncirculated Coin Set and Proof Set programs.
The coins were largely unknown to the broader numismatic community until the 1990s. Their earliest confirmed public appearance occurred at auction in 1991, shortly after the death of former U.S. Mint Director Eva Adams, establishing a crucial link to their provenance.
How do 1964 Special Mint Set coins differ from Proof coins?
The 1964 SMS coins possess a unique, smooth, satiny surface that is non-reflective, differentiating them from the typical deep mirror fields of 1964 Proof coinage. They exhibit a superior, single-strike sharpness and squared rims, but generally lack the multiple strikes applied to standard Proofs.
Were these coins released into circulation? No. With an estimated mintage between 15 and 50 sets, the 1964 SMS coins were internal, experimental, or presentation pieces and were never distributed for public commercial use or circulation.
Were these coins released as Proofs? No. Although they possess a higher quality finish than typical uncirculated coins, they are technically classified as “Special Strikes” or “Specimens” due to their unique, non-mirror finish and striking characteristics.
The Coinage Crisis of the Mid-1960s Changed the Mint’s Approach to the Collecting Hobby
The origins of the 1964 SMS coins are inextricably linked to the acute national coinage crisis that afflicted the United States in the mid-1960s. This shortage was partially driven by the escalating market price of silver, which pushed the metal’s melt value above the face value of circulating U.S. silver coinage and by the proliferation of vending machines, which slowed the coin feedback loop. These economic realities put the Mint in an untenable position: it could not produce enough coins for circulation, and public hoarding of silver coins meant that an estimated $460 million worth of silver coins had been removed from commercial circulation.
The crisis necessitated immediate and drastic legislative intervention. An early measure to combat speculation and hoarding—which was often unfairly attributed to collectors—was the date freeze, authorized by Congress on September 3, 1964. This action aimed to prevent collectors from differentiating coins based on year, theoretically reducing the incentive to hoard. The structural solution arrived with the Coinage Act of 1965, which authorized the complete removal of silver content from the dime and quarter, while simultaneously debasing the silver content of the half dollar to 40%. These changes were designed to eliminate hoarding incentives permanently.
The Transition to the Special Mint Set Program
To concentrate all available resources and production capacity solely on minting the vast quantity of circulating clad coinage needed to alleviate the national shortage, the U.S. Mint made a strategic decision to suspend the striking of traditional Proof Sets and Uncirculated Mint Sets starting in 1965. It also implemented a date freeze and suspended the use of mintmarks.
Despite these anti-collector movies, the Mint sought to meet the hobby’s demand for its annual issues by launching a Special Mint Set (SMS) program. Collectors were not sold on the program, and demand for the sets was markedly lower than demand for the Proof Sets of 1961-1964. Collector sentiment for Special Mint Sets remains low, even sixty years after their release, with sets routinely selling for around $15 today.
The existence of 1964-dated SMS coins, struck using the 90% silver standard, is not coincidental but rather a crucial symptom of the regulatory uncertainty and preparation occurring between the 1964 date freeze and the full implementation of the clad coinage mandated by the 1965 Coinage Act. These trial pieces represent the internal efforts of the Mint to develop a high-quality collector product that could bridge the gap between the last 90% silver Proof Set of 1964 and the first clad SMS issues of 1965. They served as a proof-of-concept for a new collector offering designed to divert demand away from essential circulating coinage, even before the composition change was fully standardized.
Theoretical Origins of the “Special Strike” Designation
The Trial Strike Hypothesis and Production Anomaly
The most credible hypothesis regarding the creation of the 1964 SMS coins is that they functioned as highly specialized trial pieces, or Specimen Strikes, used by the Mint to assess the feasibility of new striking processes. These experiments were necessary for establishing the methodology that would eventually define the aesthetic and quality control standards for the 1965–1967 SMS issues.
A significant anomaly in the production of the 1964 SMS pieces differentiates them from the later production run. The known 1964 SMS coins were struck at the Philadelphia Mint and utilized the 90% silver content for the half dollar, quarter, and dime, consistent with 1964 specifications. This stands in stark contrast to the standard SMS sets from 1965 to 1967, which were struck at the San Francisco Mint (but without a mintmark) and used the new clad and debased silver compositions. The Philadelphia production location suggests that these were not mere production prototypes for the San Francisco facility, but rather process development samples of a striking trial conducted internally.
It is interesting to note that the Mint was also experimenting with the Morgan and Peace silver dollar designs and is known to have produced a significant quantity of 1964-D Peace Dollars, only to cull them later before they could be monetized and released into circulation.
The Presentation Piece Theory and Custodial Retention
An alternative, though complementary, theory proposes that these coins were presentation strikes, possibly issued to honor the final days of the 90% silver standard or the immensely popular introduction of the Kennedy Half Dollar.
The classification of these coins as presentation or Specimen Strikes is reinforced by the fact that the experimental striking method, yielding the superior sharpness seen in the 1964 pieces, was evidently deemed too costly or time-consuming to maintain for the eventual mass-market production of the 1965–1967 sets. The 1964 pieces thus represent the peak quality achievable with this transitional technique, serving as exceptional benchmarks of coinage fidelity.
Technical Nuance: Differentiation from Proof Coinage
The core distinguishing feature of the 1964 SMS coins is their aesthetic and technical departure from standard Proof coinage. They are definitely not Proofs. While struck with highly polished dies and blanks, a technique typically reserved for Proof production, the SMS coins generally lack the multiple strikes that produce the deep mirror fields and cameo contrast characteristic of U.S. Proofs.
Instead of the mirror finish, the 1964 SMS coins display a uniform, smooth, and satiny surface. This non-reflective finish is the primary technical identifier. Despite lacking the mirrored fields, the 1964 SMS pieces boast exceptional mechanical quality, exhibiting incredible strike sharpness, strong details, clean fields, and a notable absence of contact marks. The rims on these coins are uniformly described as sharp and squared off.
Numismatic analysis reveals that the strike on the 1964 SMS coins is measurably stronger than the strike seen on both the standard 1964 Proof coinage and the official SMS coinage of 1965, 1966, and 1967. This suggests the Mint employed a high-pressure, single-strike methodology, focusing resources on maximizing detail fidelity and impression depth across the entire coin surface, rather than achieving the multi-strike reflective quality of Proofs. This methodology produced a specimen quality that technically surpasses the detail of the era’s standard Proof production.
Discovery, Custody, and Rarity
The 1964 SMS coins were largely absent from the numismatic consciousness for nearly three decades. They were unknown to the broader collecting community until the 1990s. The mystery surrounding their existence was solved by their crucial link to former U.S. Mint Director Eva Adams. Director Adams played a prominent role in the coinage transition era, particularly in the rapid introduction of the Kennedy Half Dollar following the President’s assassination.
The official date of discovery was long assumed to be 1993, when a set appeared at a Stack’s auction. However, subsequent research confirmed an earlier appearance: an unusual five-piece set dated 1964, struck at the Philadelphia Mint, was offered at auction in 1991. This auction occurred shortly after Eva Adams’ death on August 23, 1991, during the liquidation of her estate.
The retention of these coins by a former Mint Director and their subsequent appearance through her estate sale provide definitive evidence that the coins were likely never released into general circulation. They were reserved as internal samples or presentation pieces, bypassing standard public distribution channels. Noted coin dealer Lester Merkin is confirmed to have purchased some, if not all, of the known 1964 SMS pieces from the Adams estate, thus bringing them into the public numismatic market via subsequent auctions.
1964 Special Mint Set: Extreme Rarity and Market Valuation
Due to the lack of official documentation confirming their production, the 1964 SMS coins are classified as being among the most enigmatic and rare issues of the modern era. Mintage is highly speculative, based solely on surviving examples, and is estimated to be between 15 and 50 complete sets.
This extreme scarcity dictates highly volatile and exceptionally high valuations. While auction results for the cent through quarter dollars generally cluster in the $8,000 to $15,000 range , the highest prices are consistently commanded by the SMS 1964 Kennedy Half Dollars. A PCGS-graded SP68 example sold at Stack’s Bowers on August 15, 2019, for a record $156,000. Rarity and condition premiums can significantly drive prices higher; a high-grade Washington Quarter (MS-67 SMS) achieved $23,400 in 2023.
Definitive Status and Enduring Enigma
The 1964 Special Mint Set coins are correctly classified as Special Strikes or Specimen Strikes—an experimental coinage created at the Philadelphia Mint using the 90% silver standard during the profound economic and legislative volatility of late 1964 or early 1965.
These coins represent a critical transitional effort by the U.S. Mint: they were produced to test the striking processes for a high-quality collector product intended to replace traditional Proof Sets and satisfy collector demand during a period when the Mint was compelled to focus maximum resources on producing circulating coinage. Their superior strike quality and unique satiny finish distinguish them technically, ensuring they are not Proof coins. Furthermore, their ultra-low mintage and documented retention by former Mint Director Eva Adams confirm that these pieces were never released into general circulation or sold officially to the public as collector sets.
The 1964 SMS coins occupy a definitive and highly valuable position in modern U.S. numismatics. They provide tangible evidence of the Mint’s internal adaptation to the 1965 coinage composition change. Their historical provenance, combined with their extreme rarity and technical excellence, solidifies their status as objects of persistent fascination and immense value within the numismatic field.
The post The Mint’s Enigmatic 1964 Special Mint Set Coins appeared first on CoinWeek: Rare Coin, Currency, and Bullion News for Collectors.
