When minting coins, the United States Mint mainly uses two distinctly different production methods. One method results in the usual circulating coins that are found in cash register drawers and pockets and the other method is used to make proof coins, highly reflective and sometimes nearly flawless examples of each type of coin which are made specifically for the coin collector. The biggest exception is with SMS coins.
History of SMS Coins
In 1965, apparently in an effort to discourage the hoarding of coins, the US Mint ceased producing Proof coins. This was understandably not well liked by the coin collectors of the time. To answer the demands of the collector, the Mint instead issued sets of coins known as Special Mint Sets. While the quality of these coins was not at first very much better than that of the Business Struck coins of that time, by 1967 some SMS coins began to resemble proof coins with somewhat mirrored backgrounds and frosted devices.
The mint resumed production of Proof coins in 1968 and so ceased production of Special Mint Sets.
Today these Special Mint Set coins usually appear in proof coin collections, filling in the gap from 1965 to 1967 that would otherwise exist in a complete collection.
A Special Mint Set includes one coin of each denomination from that time period: Penny, Nickel, Dime, Quarter and Half Dollar. They can be graded on the same numerical scale as Business Strike coins (60-70) or using the more informal "Choice" and "Gem" designations. Just like proof coins, SMS coins can be found with a frostiness (or cameo) on the raised surfaces. And just like with early proof coins, such cameoed SMS coins can command higher prices as they are scarcer.
There are also known to be a few examples of SMS coins dated 1964. These were apparently produced as some sort of test run as they are very rare (and thus costly to obtain).
Modern SMS Coins
More modernly the Mint has begun producing a type of SMS again. Starting in 2005, the coins that are put into the Uncirculated Sets that are distributed by the mint are no longer the usual circulating coins. Instead special coins are being made which have a far superior finish on them with fewer nicks and dings. The finish is not mirrored with cameo raised devices like a proof, rather it is a uniform matte or satin finish. Here is an example:
There have been a few other examples of coins minted with this finish over the years such as a 1994 P Jefferson Nickel (distributed along with the Thomas Jefferson 250th Anniversary Commemorative Dollar) and the 1998 S Silver Kennedy Half Dollar (issued in a set with the Robert F. Kennedy Commemorative Dollar) and these could be designated "SMS" coins as well.
Complete List of SMS Dates
Following is a complete list of all dates of SMS coins starting with 1964 up through 2006.
Lincoln Memorial Pennies:
1964
1965
1966
1967
2005 P Satin
2005 D Satin
2006 P Satin
2006 D Satin
Jefferson Nickels:
1964
1965
1966
1967
1994
1997
Bison Nickels:
2005 P Satin
2005 D Satin
Ocean in View Nickels:
2005 P Satin
2005 D Satin
Return to Monticello Nickels:
2006 P Satin
2006 D Satin
Roosevelt Dimes:
1964
1965
1966
1967
2005 P Satin
2005 D Satin
2006 P Satin
2006 D Satin
Washington Quarters:
1964
1965
1966
1967
State Quarters:
2005 P California Satin
2005 D California Satin
2005 P Minnesota Satin
2005 D Minnesota Satin
2005 P Oregon Satin
2005 D Oregon Satin
2005 P Kansas Satin
2005 D Kansas Satin
2005 P West Virginia Satin
2005 D West Virginia Satin
2006 P Nevada Satin
2006 D Nevada Satin
2006 P Nebraska Satin
2006 D Nebraska Satin
2006 P Colorado Satin
2006 D Colorado Satin
2006 P North Dakota Satin
2006 D North Dakota Satin
2006 P South Dakota Satin
2006 D South Dakota Satin
Kennedy Half Dollars:
1964
1965
1966
1967
1998 S
2005 P Satin
2005 D Satin
2006 P Satin
2006 D Satin
Sacagawea Dollars:
2005 P Satin
2005 D Satin
2006 P Satin
2006 D Satin

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