United States quarters produced before 1965 contained 90% silver. These coins are often referred to as “silver quarters” due to their composition. The presence of silver gave these coins intrinsic value based on the metal content, which fluctuated with market prices.
The rising cost of silver, coupled with increased demand for coinage, made maintaining the silver content economically unsustainable for the U.S. government. The intrinsic value of the silver in the coins began to exceed their face value, leading to hoarding and a shortage of circulating currency. This situation prompted legislative action to remove silver from circulating coinage.