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The Israel 500 Pruta 1949 KM#16 silver coin holds immense historical and numismatic significance, marking the birth of a new nation and its early attempts to establish a national currency. Issued in 1949, just one year after the declaration of the State of Israel in May 1948, this coin represents the highest denomination of the first official coinage of the newly formed country. Struck in .720 fine silver, the 500 Pruta was not only a medium of exchange but also a bold statement of national identity and sovereignty. In uncirculated (UNC) condition, this coin exhibits sharp detail, original mint luster, and full strike quality, making it an exceptional example of Israel’s early numismatic output.
The coin was issued during a time of immense political, social, and economic transformation for the young Israeli state. As the British Mandate ended and the Israeli government began establishing its financial systems, a new coinage was necessary to replace the Palestine pound. The 500 Pruta, along with several lower denominations, formed part of Israel’s first official series of coins, introduced in 1949 and denominated in prutot—the subunit of the Israeli pound, which replaced the earlier mil system. The coins were symbolic not only for their value but also for the imagery they carried, celebrating Jewish history, culture, and the hope for national restoration.
The obverse of the 500 Pruta coin features a stylized image of a ceremonial candelabrum, commonly interpreted as a menorah or lamp, set within a decorative circular border of stylized olive branches. This early artistic interpretation of Jewish iconography would later evolve into the national emblem of Israel. Around the central design is the Hebrew inscription “ישראל” (Israel), along with the date “תש"ט” (5709 in the Hebrew calendar), corresponding to 1949. The simplicity of the design, along with its deeply symbolic imagery, reflects the nation's cultural aspirations and spiritual heritage during its founding period.
The reverse bears the large, centered denomination “500” in Arabic numerals, surrounded by the word “Pruta” in both Hebrew and Arabic scripts, along with “ISRAEL” in English. The trilingual format was a deliberate nod to inclusivity and continuity with the coinage of the British Mandate, which also used three languages. The edge of the coin is reeded, lending it a traditional appearance and offering an element of anti-counterfeiting security. In uncirculated condition, all legends, numerals, and border designs are crisp and show no signs of flattening or wear, with clean fields and fully defined edges.
The 500 Pruta was struck at the Kretschmar Mint in Tel Aviv, which was operating under contract from the Israeli government and using facilities and presses acquired shortly before independence. These early issues were produced under challenging conditions, and the technical quality of the coins was exceptional given the limited resources and lack of established minting infrastructure. The silver used was of .720 fineness, with a coin weight of 14 grams and a diameter of approximately 32 millimeters. These specifications give the coin a substantial presence and intrinsic value, both from a bullion and historical standpoint.
The total mintage for the 1949 500 Pruta coin was relatively limited, with just 100,000 pieces reportedly struck. Given the challenges of Israel’s early years—economic uncertainty, war, and population influx—many of these coins were used in commerce or hoarded for their silver content. As a result, surviving examples in uncirculated condition are increasingly scarce and highly sought after by collectors. The coin was withdrawn from circulation in the 1950s when Israel transitioned to a new currency structure that eliminated the pruta denomination, adding further historical finality to the series.
In UNC condition, the 500 Pruta coin displays full mint luster, well-struck design elements, and sharp definition of all symbols and inscriptions. The candelabrum and olive branch motif remains bold and frosted, while the surrounding fields exhibit a clean, even surface with minimal contact marks. Uncirculated specimens may vary slightly in brilliance, depending on how they have been stored over the decades, but the best examples show no signs of tarnish, haze, or friction. Collectors often seek certified examples graded by NGC or PCGS, where MS63 to MS65 grades are common among the best-preserved coins.
This coin carries profound symbolic weight as a product of a nation freshly risen from the ashes of World War II and the Holocaust. Its issuance not only enabled commerce but also conveyed messages of unity, resilience, and the Jewish people's return to sovereignty after two millennia. The use of ancient imagery—the lamp and olive branches—alongside modern denominations in three languages, speaks to the bridging of tradition and future, making the 500 Pruta a powerful artifact of identity and renewal. It is more than currency; it is a message of national rebirth struck in silver.
Collectors value the 1949 500 Pruta coin not only for its silver content and low mintage but for its significance as a first-year, one-year-type issue. It stands at the apex of Israel’s first circulating coin series and is often the centerpiece of any collection of Israeli numismatics. While circulated examples are relatively common, UNC coins are much rarer and carry strong premiums, particularly when accompanied by original mint packaging or provenance. The combination of low mintage, rich symbolism, and high-quality design places this coin among the most historically important silver coins of the 20th century Middle East.
The Certified or Uncirculated 1949 Israel 500 Pruta KM#16 silver coin embodies the spirit of a newly born nation, boldly declared in precious metal and dignified artistic form. It captures the essence of national renewal, faith, and endurance, and remains one of the most revered and collectible coins in Israeli numismatic history. Whether appreciated for its artistry, silver content, or place in the narrative of modern statehood, this coin stands as a powerful and tangible link to Israel’s founding generation and its enduring hopes for peace and prosperity.