May 1, 2010

France, 1827: "The Price Fell in St. Petersburg by a Two-Thirds"

The Paris Exposition in August 1827 of Cuoq & Courturier's massive ingot may have occasioned the ~50% collapse of the Platinum Price in Paris; it's not clear that platina (ore) is meant here.

December, 1825: 1 Troy Ounce Platinum (Mfg) =
Fr 32.51 (USD$ 6.32)

September, 1827: 1 Troy Oz. Platinum (Mfg) = Fr 27.94 (USD$ 5.25)

Citation: Histoire de l'exposition des produits de l'industrie française en 1827; Adolphe-Jérôme Blanqui (1827) p.34


Where the French once is .9844 Troy Ounce in all French calculations.

1826: 1 Troy Ounce platina (ore @ Paris) = Fr 15.47 (USD$ 2.87)
1826: 1 Troy Ounce Platinum (mkt) = Fr 27.94 (USD$ 5.26)


Early, 1827: 1 Troy Oz. Platinum (Mfg, Retail) = Fr 39. (USD$ 7.35)

July, 1827: 1 Troy Ounce platina (Bulk ore @ Paris) ~ Fr 8.38 (USD$ 1.61)
July 1827: 1 Troy Oz. Platinum (Refined, Mfg?) = Fr. 32.51 (USD$ 6.24)
August, 1827: 1 Troy Oz. Platinum (Refined, Ingot) = Fr. 27.96 (USD$ 5.26)

c.1828: 1 Troy Oz. Platinum (manufactured) = Fr 31.1 (USD$ 5.85)


In late 1825/6, the price of platina in Saint-Petersbourg fell by ~33%. Calculated at nominal metallic Rouble rates, 1824/5 likely marked a Russian price peak for the entire 19th Century. This singular event was repeated without date or context (as if current news) for some years afterwards. Curiously, whenever a major discovery of platina was announced, a similar headline ran: 'dropped by one-third.'

In 1827, commercial intelligence typically took ~12 days, St. Petersbourg to London.
S. Petersbourg - Wien: 14 days

Count Cancrin's expertise as a financier was legend; his Late August letter cites a dropping platina price and betrays a strong desire to have von Humboldt certify the value the Platinum coinage scheme.

In all likelihood, Cancrin's Late August Letter cites the Paris prices for June-July 1827. Even when Paris prices (for platina & Platinum) were then volatile, we may ascertain dates from the exchange of letters between Cankrin and Alexander von Humboldt.

1) Cancrin's 15 August Letter is received in Berlin ~21 days later: ~7 September.
2) von Humboldt queries source(s) in Paris & London, in Letter(s), ~ 15 Sept.
3) Bréant replies to von Humboldt ~ Mid-Late October.
4) von Humboldt receives Paris information Mid-November, ~ 2 weeks' post.
5) Cancrin's 22 October Letter arrives in Berlin ~21 days later, Mid-November.
6) von Humboldt replies immediately, 17 November.
7) Cancrin replies immediately, 20 December: ~3 weeks' post, St. Petersburg to Berlin.

One Paris informant appears to be none other than Bréant himself; his name is cited (in the von Humboldt letter, 19. November 1827) indicating a competitor's price was "8-10% cheaper than the above."

No London data is given; probably, no reply was received.

Citation: Im Ural und Altai: Briefwechsel zwischen Alexander von Humboldt und Graf ...; A. von Humboldt, Egor F. Kankrin (18 ) p.3
 
Ich habe mancherlei Nachrichten über den Werth der Platina aus Frankreich und England zusammenbringen lassen, aus denen man hier hat schließen wollen, daß im Mittel die Unze roher Platina etwa 8 und mehr Franken kostet, die Unze völlig gereinigter aber gegen 32 Franken. 

I can enjoin various news from France and England about the value of Platinum, decidedly concluding that on average, the Once of platina costs about 8 or more Francs, against Fr. 32 for an Once refined pure.


Citation: Nouvelles annales des voyages, de la géographie et de l'histoire ..., Vol. 32 By Jean Baptiste Benoît Eyriès, Malte-Brun (1826), p.116.

Citation: Museum of foreign literature and science, Vol. 10, (1827), p.93

Citation: Niles' Weekly Register, Vol. 32 (1828) p.248

In 1827, news from New York to Paris might travel in 4 weeks.

1827: 1 Troy Ounce Platinum (mkt) = Fr 27.49 (USD$)
 
Citation: Histoire des Expositions des produits de l'Industrie Française (1855) Achile de Colmont, p.232

Citation: The London literary gazette and journal of belles lettres, arts, sciences, etc (1827) p.670










Citation: Annales des mines ou Recueil de mémoires sur l'exploitation des ..., Vol. 2 (1827), p.453

1827: The massive ingot was 2,862 English Troy oz.
Citation: Annales des mines ou Recueil de mémoires sur l'exploitation des ..., Vol. 2 (1827) p. 513

Citation: Travaux de la Commission française sur l'industrie des nations; Vol. 6, Great Exhibition (1851, London) p.254




The French Mint had only recently begun refining platinum-alloyed gold bullion (which had sat for years, awaiting just such a technological improvement. This may have provided an increased supply for Bréant (the Mint Director) to employ, at discount.



Official valuation of Platinum in 1826 and in 1835:
Citation: Revue mensuelle d'économie politique, Vol. 4-5, Edit. by Théodore Fix (1836), p.441



Cuoq & Courturier's massive ingot was reported in Germany in mid-October, 1827.

Presumably, France imported 0.3878 kgs ore and exported 2.03 kgs Platinum?

Citation: Allgemeine Handlungs-Zeitung: mit den neuesten Erfindungen..., Vol. 34 p.518


1827: The (1 August) 1827 Exhibition at the Louvre of a massive Platinum ingot was reported in The New Monthly (December 1827) and thereafter until 1829 as 'news.'

c. June, 1828:

Where 8.5 Kgs = ~273.3 Ozt
Complete with accessories, Bréant's (1826/7) smaller boiler had a Platinum weight per Litre of 6.5071 Troy Ounces; the amount of Litres contained per Troy Ounce was 0.1537 Litres.

Citation: Recueil industriel, manufacturier, agricole et commercial, de la ..., Vol. 8 (1828) p. 331


Russian Prices at French equivalents, where 1 Zolotnik = .137152 Troy Ounce and before the Paris Platinum price collapsed:

July, 1827: 1 Troy Ounce platina (bulk ore @ SPb) = Fr 20.44 (USD$ 3.92)



April/ May? 1827:
 
If stuck at the same modality/density as the Gold,


German historical perspective (1870s):

Uncertain reference: erroneous historical data ?

1827: 1 Troy Ounce platina (Est. Ural Source Cost, purity) ~ Fr 11.88  
1827: 1 Troy Oz Platinum (Est. Cost Basis) ~ Fr 13.77 
1827: 1 Troy Oz Platinum (SPb: Est. Paris Mkt) ~ Fr 32.16

 
7/1827: 1 Troy Ounce platina (SPb: 71.37% pure) ~ 
7/1827: 1 Troy Ounce platina (SPb)= ~ Fr 19.89 ~ 5.01 руб (Ag) 

Citation: The Mineral industry, Volume 17 (1909) p.718

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