07 July 2020

Gold Standard

Lest anyone tell you that inflation is not possible on a gold standard...

In 1851 an ounce of gold was $18.93.

In 1881 an ounce of gold was $18.94.

But the price of copper was not tied to the price of gold.

The 1851 coin was made from 10.89g of 100% copper.
The 1881 coin was made from bronze with 2.95g of copper in it.

Present value is about $20 for the older coin and $2 for the newer.

1 comment:

  1. It's nothing new. The Romans did it on more than one occasion.


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