The 1796 and 1797 Draped Bust U.S. Half Dollars are among the rarest and most sought-after coins in American numismatics. These coins were minted during the early years of the U.S. Mint and represent a significant period in American monetary history. Their rarity is attributed to several factors, including low mintage numbers, historical context, and the difficulty in obtaining well-preserved specimens today. This discussion will focus on these key aspects, helping to illuminate why these coins hold such a prestigious place in numismatic circles.

Historical Context

The Draped Bust design, introduced in 1796, replaced the Flowing Hair design used on earlier coinage. The obverse of the coin features Liberty, draped in a cloth, with her hair tied back and flowing behind her. This design is believed to have been inspired by a portrait of socialite Ann Willing Bingham, although this connection is not definitively proven. The reverse of the coin features an eagle with outstretched wings, encircled by a wreath.

The coins were produced at a time when the U.S. Mint was still in its infancy. The young nation was struggling with a variety of challenges, including a lack of precious metals, rudimentary minting technology, and an economy that was still evolving from the colonial period. The U.S. Mint in Philadelphia, the only mint in operation at the time, was still establishing its processes for producing coinage. As a result, coin production was limited, particularly for higher-denomination coins like the half dollar.

Mintage and Rarity

The 1796 and 1797 Draped Bust Half Dollars are rare primarily due to their extremely low mintage numbers. In 1796, only 934 half dollars were struck. The following year, 1797, saw a mintage of just 3,918 coins. These numbers are strikingly low, even by 18th-century standards. To put this in perspective, it is not uncommon for U.S. coins from the 19th and 20th centuries to have mintages in the millions.

The reasons for the low mintage of half dollars during these years are multifaceted. First, the U.S. Mint was facing difficulties in acquiring sufficient quantities of silver to produce larger denomination coins. Additionally, the demand for smaller denomination coins, such as cents and half cents, was much higher, as they were more practical for everyday transactions in the fledgling American economy. Half dollars, being larger and representing more wealth, were not as frequently used.

Another factor contributing to the rarity of these coins is the inconsistent production at the mint during this period. The minting of half dollars was often sporadic due to equipment failures and interruptions in silver supply. These factors resulted in very few half dollars being produced over the two-year period of 1796 and 1797, making them rare even when they were first struck.

Condition and Survival Rate

The rarity of these coins is further compounded by their survival rate. Not only were few coins struck, but many of those that were produced have not survived to the present day. The coins that did survive often show significant wear, as they were used in circulation for many years. The large size and higher face value of the half dollar made it a prime candidate for circulation in commerce, and as a result, few examples have survived in high grades.

Collectors seeking a 1796 or 1797 Draped Bust Half Dollar today will often find that most available examples are heavily worn, with many grading in the range of Fine (F) to Very Fine (VF). Finding an example in Extremely Fine (EF) or higher is extremely rare and commands a significant premium. Mint State (MS) examples of these coins are virtually unheard of, and when they do appear at auction, they can sell for hundreds of thousands of dollars, or even more depending on the grade.

Another challenge in finding high-grade examples is the quality of the minting process itself. The U.S. Mint was still perfecting its techniques during the late 18th century, and the quality of the strike on many coins from this period is inconsistent. Coins from the 1796-1797 half dollar series often exhibit weak strikes, particularly in areas such as Liberty's hair or the eagle's feathers. This further complicates the task of finding well-preserved examples, as many coins were not struck with sharp details to begin with.

Collectability and Market Value

Due to their rarity and historical significance, the 1796 and 1797 Draped Bust Half Dollars are highly prized by collectors. These coins are considered key dates in the early U.S. half dollar series and are essential for anyone attempting to assemble a complete collection of early American coinage. As such, they command high prices in the numismatic market.

Prices for these coins vary widely based on their condition. A heavily worn example in Good (G) or About Good (AG) condition can still fetch thousands of dollars, while coins in higher grades can reach tens of thousands or more. For example, a 1796 Draped Bust Half Dollar in Fine (F) condition might sell for $10,000 to $20,000, depending on the specific coin and market conditions. An Extremely Fine (EF) example could easily exceed $100,000.

The market for these coins is also influenced by the scarcity of high-quality examples. As previously mentioned, Mint State (MS) examples are exceedingly rare, and when they do appear at auction, they can generate significant excitement among collectors. In 2019, a 1796 Draped Bust Half Dollar graded MS62 by PCGS sold for over $750,000, highlighting the premium that collectors are willing to pay for top-quality specimens.

Conclusion

The 1796 and 1797 Draped Bust Half Dollars are true rarities in the world of numismatics. Their low mintage numbers, coupled with a high attrition rate and the difficulty in finding well-preserved examples, make them some of the most coveted coins in early American coinage. For collectors, these coins represent not only a significant financial investment but also a tangible connection to the earliest years of the United States and its monetary system. Their combination of historical importance and rarity ensures that they will continue to be highly prized for generations to come. Here are two example of these types of coins as well as their auction prices: 1797 Half Dollar; PCGS AU 50 and the 1796 (sixteen star) Drape Bust Half Dollar