USA/Jamaica, 1802: Bulk Platina First Appears in NYC

In late 1801/ early 1802 at exactly the same period when Alexander von Humboldt was investigating platina in Choco, the Spanish Crown maintained an export ban and monopoly, illicit trade in platina at the source notwithstanding.  So the appearance of a very large shipment of platina smuggled from New Spain via Jamaica in 1802 was noteworthy and widely reported in US newspapers, as a major trade item.   

The rarity of this now restricted "new metal" was understood by merchants.  The price was extremely high -  exorbitant to some - but may be considered an early attempt at price discovery in a suddenly restricted export market.  It is unknown at what price the platina was actually purchased by the agent in Jamaica or in Cartegena, but Wollaston in London was making purchases 1800 - 1816 for a fraction of this reported cost.  It is also unknown at what price this platina actually sold in New York (or elsewhere.) "Baron Alexis De Carendeffez, "formerly of San Domingo, Haiti" would be the son of the French nobleman assassinated in Port-Au-Prince in 4 March 1791 and who may have served at Yorktown: he arrived in New York sometime prior to 1798 (presumably, from Haiti?)

This notably high US crude platina price at the beginning of the 19th Century reports presumed adulteration, additional middlemen/fees, and a momentarily tight or even cornered market.  The heavily restricted trade and contemporary belief that platina 8-10x rarer than gold undoubtedly fueled speculative interest.  This probably represents  a failed attempt at a cornered market rather than an Investor's Death Spike, but this '1802 Jamaica Price' was widely reported and remembered over 25 years later. 

Note that estimated weight of 'platina' (aka 'Platinum') should include other yet undiscovered PGMs; the hypothetical import price for Janeanetty's Platinum would be based on standard shipping, tariffs, mark-ups, etc.

1802: 300 lbs. @ $40./lb. avoirdupois = $12,000./4,375 oz. Troy

1802: 1 Troy Ounce platina (NY: whols., 62.15% ore) ~ USD$ 2.74

1802: 1 Troy Oz. Platinum (intrinsic) ~ USD$ 4.41

1802: 1 Troy Oz. Platinum (hypothetical US mfg cost) ~ USD$ 10.30

1802: 1 Troy Oz. Platinum (est. import cost, refined) ~ USD$ 20.

Citation: Medical repository of original essays and intelligence relative to ..., Vol. 6, edited by Samuel Latham Mitchell, Edward Miller (1803), p.203

Later German sources (1835) describe what might be the same platina, but without any mention of the US destination.  A textbook example of arbitrage (1802) could not, however, guarantee selling the product at the same rate but higher price in the USA (if Sterling was employed.)  40 Piastres the English Pound avoirdupois and 34 Pence per Piastre becomes:


1802: 1 Troy Ounce platina (@Jamaica) = £0.3866 (USD$ 1.74)
1802: 1 Troy Ounce platina (@ New York) = USD$ 2.74

This is instructive, where refined Platinum had recently been sold at the price of Gold in London; it was certainly not cheaper in New York!

The French account republishes the New York news; a gourde-piastre was Fr 5 (hence, ~$1)

Citation: De Journal de L'amerique du Nord ou Correspondant des Etats-Unis (1807) p.1






Citation: Allgemeines Waren-Lexikon, Volume 2; Johann C. Leuchs (1836) p.125


In 1802 @ New York, where the USD$ 10. Eagle was 16.04 g fine gold,USD$ 1. 24.75 gr:
1 troy oz. fine gold = USD$ 19.39

1 troy oz. fine gold =  7.07 troy oz. of 62.15% crude Choco platina

1 troy oz. fine gold =  4.39 troy oz. of Platinum ('pure' ore)

In 1802 @ New York, at the Federal rate:
1 troy oz. fine silver = USD$ 1.2929

1 troy oz. fine silver =  0.47 troy oz. of 62.15% crude Choco platina

1 troy oz. fine silver =  0.29 troy oz. of Platinum ('pure' ore)

1802:

1800:

1801-2: The 1801 species crisis likely effected Colombian trade; in Europe, precious metals were scarce and at a premium and prices of plentiful US goods had fallen considerably by 1802. The scarcity of specie and high value of PMs may have favored platina also.

1802:

1802: The course of exchange varied; the Franc was valued at USD$0.1845 - 0.1887

The 1802 High Price in New York, reported in Bavaria in 1807: 

(Cartagena - Kingston,  kms; Cartagena - New York, 3,395 kms; Cartagena - Liverpool, 8,314 kms)

James Perkins (1761-1822) donates a specimen of platina in grains from Peru to the Boston Historical Society.  Perkins was a wealthy merchant-shipowner of Boston, then a 42-year old a partner (with brother) in the firm of J. and T. H. Perkins of Boston, engaged in the China trade. His town house was on Pearl Street, and he maintained a country place, "Pine Bank," at West Roxbury, Massachusetts.  He was one of the founders of the Perkins Institute for the Blind.

Citation: The Boston Weekly Magazine, Vol.1  (5/14/1803)

Adjusting for Real Inflation since 1802 (7,281%) we can extrapolate a long term price for wholesale platina @ $ 351. (in 2009 USD$)  The respective refined platinum price is inflation-projected to  ~$ 1,075. per Troy Ounce in 2009 Dollars.