United States Half Dime
The half dime, or half disme, was a United States silver coin. Some numismatists consider the denomination to be the first coin minted by the United States Mint under the Coinage Act of 1792, with production beginning on or about July 1792. However, others consider the 1792 half disme to be nothing more than a pattern coin, or ‘test piece’, and this matter continues to be subject to debate. These coins were much smaller than dimes in diameter and thickness, appearing to be “half dimes”.
In the 1860s, powerful nickel interests successfully lobbied for the creation of new coins, which would be made of a copper-nickel alloy; production of such coins began in 1865, and were struck in two denominations — three and five cents (the latter introduced in 1866). The introduction of the copper-nickel five-cent pieces made the silver coins of the same denomination redundant, and they were discontinued in 1873.
In 1978 a coin collector surprised the coin collecting community with an 1870-S (San Francisco) half dime, believed to have been found in a dealer’s box of cheap coins at a coin show. According to mint records for 1870, no half dimes had been minted in San Francisco; yet it was a genuine 1870-S half dime.
At an auction later that same year, the 1870-S half dime sold for $425,000. It is believed that another example may exist—along with other denominations minted that year in San Francisco—in the cornerstone of the old San Francisco Mint. Later in July, 2004, one sold for $661,250 in MS-63 in a Stack`s-Bowers auction.
Numismatic treasures await us in the most unlikely places. Take the 1870-S Half Dime, for example. According to official Mint records, none were ever struck, despite the fact that six pairs of Half Dime dies were on hand at the San Francisco mint. Yet, in early 1978, a single example of this previously unrecorded date was purchased as a common type coin. The exciting news of the discovery of an 1870-S Half Dime stunned the numismatic world and, following it’s exhibition at the 1978 convention of the American Numismatic Association, this previously unappreciated coin sold for $425,000 to Michigan dealer John Abbott. How was the selling price for this unique rarity determined? — by a formula agreed to in advance by all parties in which $25,000 was added to the hammer price of the 1804 Silver Dollar sold as part of the John Work Garrett collection!
Accounts of the discovery of the 1870-S Half Dime vary. One account claims the coin was found in a “junk tray”, another says a “junk box” (same thing, actually), and a third says it was bought over the counter as a common type coin by a Cook County (IL) dealer.
The cornerstone of the second San Francisco Mint may contain another example of the 1870-S Half Dime along with an 1870-S Three Dollar Gold piece (which is known to have been placed therein) and possibly other 1870-S dated coins.
Source: http://finerarecoins.blogspot.com/2013/09/united-states-half-dime.html
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