The composition of the 1965 Kennedy half-dollar is a key characteristic differentiating it from earlier versions. Prior to 1965, circulating half-dollars were composed of 90% silver and 10% copper. The 1965 coin, however, transitioned to a clad composition, consisting of an outer layer of 80% silver and 20% copper bonded to an inner core of 20.9% silver and 79.1% copper. This resulted in a total silver content of 40% by weight.
This change in metallic makeup stemmed from rising silver prices and a coin shortage. The shift allowed the United States Mint to produce a greater quantity of coinage with less silver. This characteristic affects its intrinsic value, making it distinct from pre-1965 silver coinage and impacting its collectibility among numismatists. Its reduced silver proportion directly influences its melt value compared to its predecessors.