How and why did the half dollar piece become so unpopular with the public?

Ok I had them reversed. But still, do you consider "hoarding" the same as driving out? Thats the key here. Is the act of hoarding valid? I think no.

edit:
OK well wikipedia seems to agree with you on the hoarding. I'm not sure Ive heard of it that way before but i'll go with that reference for the sake of this thread and concede. I still think the act of hoarding isnt neccesarily "driving money out" per se but i suppose the effect is the same.

 

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What do you think "driving out" means exactly? It means that the coins are no longer used for commerce. If they are not used, then where do they go? They are hoarded! That's exactly what it means!

 

The example that came to mind for me first was the example of a new currency such as in the colonail US era. Such as new american currency driving out older british or spanish coinage, where hoarding is not in play but a currency is "driven out"

 

But how does one explain the hoarding of post '70 halfs. No intrinsic value there.

 

Mumu, where does the old currency go when it is driven out?

The whole point of Gresham's law is that people are going to keep the good money that they trust, and spend the bad money which they don't trust. The clad coinage is fiat money - the only thing that gives it value is our belief that it has value. The entire American economy is built on the belief that our money has value because the government says it does. There is nothing backing it - except the goodwill of the American and world population.

When the good money is driven out, its not going to go to some foreign country or some mystical "hiding place". No, people are going to keep it.

Lets give a more pertinent example that will hopefully bring it home: Imagine someone hands you $19.16 in cash (the current spot price of silver), and an ounce of silver. They tell you that you have to spend one and keep the other. Now, we have just said they are worth exactly the same amount - that is, they will both purchase the exact same amount of goods. You have to spend one - which one are you going to spend? I am almost certain that you will spend the cash and keep the silver. That is Gresham's law.

Now pretend its 1965 and someone hands you two clad quarters and one 40% silver half. They tell you they will both buy the same amount of flour, and you must spend one. Which one are you going to spend?

Exactly.

 

There is no hoarding of post '70 halves. The mintages are terribly low, and the vaults are full of them. No one uses them. No one hoards them. After they lost popularity, they were never heard from again except by purchasers of mint sets and rolls.

 

Well I already conceded based on what wikipedia has stated. However you can take the argument evne further and call silver just as fiat as clad in that all silver really is is another metal from the ground that by the goodwill of humanity we have agreed to assign a value to.

 

These numbers don't appear to be particulary rare.....

 

You and I both know that the post 70 halves are clad, but since most people do not see them they assume that they are a rarity and hoard them.

Last week both my string trimmer and my hedge clippers broke down, I used the halves that I had from roll searching to buy the replacement parts, the clerk asked me if I saved them, I told him yes but I needed to get my tools running again, I would bet that he or some other person probably bought them from the register.

I have had hoarders tell me that half dollars are rare, that copper cents were not made after 43, that steel cents are very valuable, I do not argue with them but they seem very sure of their misinformation.

 

We have a business in our fair city, a burger joint no less, that has a manual change maker that dispenses half dollars.

Burgers and Shakes.

Hey, catchy name, right? In business since 1957. One of the many newspaper articles thru the years about Burgers and Shakes was about the fact that it is one of, probably the only, business in town using the half dollar on an almost every transactional basis. The flame broiled Burgers are a little under a buck and come with fresh raw onion, pickles and mustard...catsup (ketchup) on the side. A town tradition. But, one of the reasons some folks stop is the halves. If your change doesn't include a JFK,(never ever found a barb, walker or ben ) the folks will change a bill for a couple of coins. I have personally received 8 40%ers and a few Bi-Centennial clads in the past4, 5 years.

Do people come back for the Half Dollars? Yes, they do. Would they come back for just the burgers? You betcha! The half dollars just make it that more fun.

BTW. The article in the Lexington (KY) Herald-Leader made a point of mentioning the coin changer was NOT for sale, some substantial 'change ' had been offered and turned down.

Biz owner? Maybe addding halves would be a plus, just thinking...

 

No. The value of a silver quarter is based on the market, there is no goodwill of humanity. It is not fiat by definition.

The value of a clad quarter is based on nothing. The market values a quarter at 4 cents. The government, based on no objective standard tacks on an additional 21 cents. That 21 cents is the fiat part.

 

I still believe Newton's Law was the main reason for the decline in half dollar popularity. It's hard to like money that pulls your pants down. Inflation meant more money was needed to make the same purchases, so, added weight. They didn't become scarce, just unwanted.

 

The value at market is based on the fact that we agree its worth something for nothing else than the goodwill of humanity. YOu can keep layering it to make it worth more than clad but if you keep going back far enough its just a rock in the ground we agreed was going to be worth something from now on at some point.

 

You can't seriously believe that Silvers value is not just an issue of perception? If not then explain, please your audiences awaits your wisdom, why Gold, which is more common and less useful than silver, is so much more expensive than silver, which is more useful and rarer?

Ruben

 

Actually, at the time of the gold standard they tried to prevent fair market trading of gold or silver and legally pegged the price of ounces of gold per dollar. They even made it illegal to own gold.

Ruben

 

Smoke & Mirrows

Will Gresham's Law apply when our youngsters find horded coins and swap them for the latest desirables?

I think they are rubberbands they place on their wrists this year.

Go Figure.

 

The true value of an item is determined when people agree to pay a price for something in an open market. Silver, copper, nickel, and gold are all traded for their metal value alone in an open market. These metals are all useful for things besides coinage, so they are bought and sold. This is where the metal value comes from - not from our belief in them.

 

All I can say is that my wife kept every half dollar she got. She had a large jar of them. And it took a lot of convincing to get her to cash them in ? And she liked the bi-centennials most of all. Never spent any, looked at them, got a folder, just kept them in a jar. LOL I imagine that she's not the only one either.