Special Mint Sets (1965–1967) & Their Place in History

The Coin Shortage Crisis

In the early 1960s, the United States faced a severe nationwide coin shortage. Several factors converged: rising silver prices made silver coins worth more as metal than as money, encouraging hoarding; the explosive growth of vending machines created unprecedented demand for small change; and collectors (blamed fairly or not) were accused of removing coins from circulation. By 1964, the shortage was acute enough to prompt drastic government action.

Congress responded with the Coinage Act of 1965, which made several sweeping changes: silver was eliminated from dimes and quarters, the half dollar was reduced from 90% to 40% silver, mint marks were removed from all coins (to discourage collecting by date and mint), and proof set production was suspended. The Mint's official position was that every resource should be directed toward producing circulation coins to end the shortage.

Special Mint Sets: The Compromise

With proof sets cancelled, the Mint created a substitute product: Special Mint Sets (SMS), produced from 1965 through 1967. These sets contained five coins (cent, nickel, dime, quarter, half dollar) with a finish that fell somewhere between a standard business strike and a true proof. The coins were struck with slightly higher pressure on better-quality planchets using polished dies, but they lacked the multiple strikes, individually polished planchets, and careful handling that define true proof coins.

The result was a coin with a semi-brilliant surface — shinier than a business strike but without the deep mirror fields and sharp frost of a proof coin. The quality was inconsistent: some SMS coins approach proof-like appearance (particularly 1967 issues), while others are barely distinguishable from well-struck business strikes.

SMS Details by Year

1965 Special Mint Set:

• Mintage: 2,360,000 sets
• First SMS year; coins struck at Philadelphia (no mint marks on any 1965 coins)
• Finish quality varies widely; early strikes tend to be better
• Current value: $8–$15 for standard sets; exceptional quality examples command premiums

1966 Special Mint Set:

• Mintage: 2,261,583 sets
• Similar quality to 1965; packaging changed to a rigid plastic holder in a blue box
• The 1966 SMS Kennedy half dollar in exceptional strike quality is particularly sought after
• Current value: $8–$15 standard; premium for exceptional examples

1967 Special Mint Set:

• Mintage: 1,863,344 sets
• Best quality of the three years; many 1967 SMS coins approach true proof appearance
• The 1967 SMS Kennedy half dollar is the star of the SMS era — the best examples rival proof coins in mirror depth and frost, with exceptional specimens grading SP-68 and above commanding significant premiums
• Current value: $10–$20 standard; high-grade individual coins can bring $100+

Grading Special Mint Set Coins

SMS coins are graded using the SP (Specimen) prefix rather than the MS (Mint State) or PF (Proof) designations. The Specimen scale runs from SP-60 to SP-70, with the same numerical standards as MS and PF grades. This separate designation acknowledges that SMS coins are neither standard business strikes nor true proofs — they occupy a unique middle ground.

Key grading considerations for SMS coins:

• Surface quality: Look for the best possible mirror finish. The degree of reflectivity varies widely between individual coins, even within the same set.
• Frost: Some SMS coins (particularly 1967) show noticeable frosting on the devices, similar to early-strike cameo proofs. These "cameo SMS" coins are particularly prized.
• Contact marks: Despite better-than-normal handling, SMS coins often show more contact marks than true proofs because they weren't handled as individually. Grade-limiting marks on the cheek or fields are common.
• Strike quality: The extra striking pressure on SMS coins generally produces sharper design details than standard business strikes, but not as consistently sharp as true proofs.

Collecting Special Mint Sets

SMS coins occupy a unique niche in numismatics. They're affordable — a complete three-year set of 15 coins costs just $25–$50 — yet they represent a fascinating chapter in US Mint history that intersects with the coin shortage crisis, the end of silver in circulation, and the brief period when mint marks disappeared from American coins.

For variety collectors, SMS coins offer a treasure hunt. Searching for exceptional strikes within the normally mediocre SMS production can yield coins that rival proofs in appearance. The best 1967 Kennedy half dollars in SP-67 or SP-68 grades with cameo-like contrast are genuinely impressive coins that compete visually with true proofs at a fraction of the cost.

Advanced collectors pursue NGC SP-68 or PCGS SP-68+ examples of specific SMS coins, particularly the 1967 Kennedy half. The population reports show very few coins at these elite grades, creating genuine rarity. A 1967 Kennedy in SP-68 Deep Cameo might sell for $500–$1,000 — an impressive price for a coin from a set that originally sold for $4.

Find SMS sets at coin shows — they're common in the inventory of dealers who carry proof sets and vintage Mint products. At show prices, the three-year set is one of numismatics' best bargains. For the quality hunter, ask dealers if they have any cherry-picked SMS coins in exceptional grades — the premium for top-tier SMS coins is well justified by their scarcity and visual appeal.