Russia/France/USA/UK 1828, 1845: Coinage Experiment Failure & Market Price

In later years, there were many theories why the Russian Platinum coinage failed; contemporaries reported the coinage wasn't circulating as early as 1830, due a collapse in platina prices. (Why coins were still minted, at a reported loss, must be explained by peculiar bureaucratic intentions.)

Various allusions to theft, debasement & counterfeit remain speculative, although rare examples of fakes may provide some clues.

1828: 1 Troy Ounce platina (Mint; ~80%) = 21.82 руб (Banco; USD$ 4.37)

1828: 1 Ozt. platina (Export; ~80%) = 5.61 руб (Silver Roubles; USD$ 3.87)

1828: 1 Ozt. Pt (Mint; refined, unmfg.) = 29.18 руб (Banco; USD$ 5.84)

1828: 1 Ozt. Platinum (Mint; ref) = 7.50 руб (Silver Roubles; USD$ 5.33)

1828: 1 Ozt. Pt (Mint Export, semi-mfg) = 36.36 руб (Banco; USD$ 7.28)

1828: 1 Ozt. Pt (Mint exp, semi-mfg) = 9.35 руб (Silver Ru; USD$ 6.64)

1830: 1 Ozt. platina (Mint Export), in Paper Roubles = £ 0.91 (USD$ 6.90)

1828: 1 Ozt. Platinum (Mint Export) " " = £ 1.52 (USD$ 7.49)

c.1830

c.1854 Mis-estimations of the Platinum output/value, 20 years earlier, by calculating rates for ore producers: £ 0.96 ($4.50) per ounce, or about 25-50% lower than the (US) market rate in the mid-1850s. Briefly, the Crimean War ended supplies to France and England (therefore, globally) for several years.

Im Ural und Altai (1869) p.140

From 1828 to 1835, the Russian government emitted 4,251,843 Platinum Rubles but found itself obliged to suspend the coinage in 1845, because too large a difference between coin and value of the metal. (In introducing platinum coin in 1828, the assumed value was 4,745 rubles per pood. In 1845, platinum prices fluctuated in the main European markets from 2,503 to 2,808 Rubles the pood.)

1845: 1 Ozt. Platinum (refined) = 9. руб (USD$ 6.78)  
1845: 1 Ozt. Platinum (ref.; global mkt) = 4.75 - 5.33 руб (USD$ 3.57 - 4.)

Despite the effective Russian monopoly on production, the global price of Platinum was still set in Paris & London. The wholesale price of Platinum fell almost -64% from 1828 - 1844.

1828: 1 Ozt. Platinum (France Market Price) = Fr 34.21

1845: 1 Ozt. Platinum (France Market Price) = Fr 12.44

1828: 1 Ozt. Platinum (UK Market Price) ~ £ 1.40 (USD$ 6.90)

1845: 1 Ozt. Platinum (UK Market Price) ~ £ 1.0 (USD$ 4.87)

Mid 19th Century presumption: Russian coinage ceased because of LOW Pt price (and tacit risk of import/counterfeiting.)

Citation: The Bankers' magazine, Volume 15 (1855) p.689


Jevons' opinion (c. 1878) was subsequent to events, but probably typical to the English perspective in the late 19th C.

Citation: Money and the mechanism of exchange; William Stanley Jevons


Early 20th Century presumption: Russian coinage ceased because of HIGH Pt price and Pt coin export!




Citation: Chemistry and metallurgy, as applied to the study and practice of dental surgery ; Aaron Snowden Piggot (1854)





About the Imperial. Platina-Russian coins.

Imperial virtue. Russian Order of 24 April 1828 is that, since 1820 in the gold-washing Reyen the Ural Mountains and discovered in 1823 recognized as a platinum metal coins to tentatively pronounced.

These coins, which has not had a forced circulation, the size of a Prussian five-pence pieces, distinguished by their specific gravity, from the way through a beautiful and sharp character, which on the one hand, the Russian Reichswapen, on the other the designation of the value and fineness contains.

The absolute weight of such tokens is 167.75 grains, which means when balancing the hydrostatic balance in the water undergoes a reduction of 8.25 grains. Therefore, the specific gravity 20.8. The weight of the alloy is 11.5 grains, and therefore can only consist of silver.

The current exchange value of silver, platinum and gold behaves calculated according to the London market prices, net, such as 1: 3.34: 15.3 Plarina is, therefore, three meals so precious than silver, but five meal cheaper than gold. According to the Russian, the Russian monetary standard 96 pounds of pure metal is finely defined Solotnik gold to 333.3 rubles to 3.22 rubles a pound of silver, platinum and the pound to 118.3 rubles. The Werthverhältniß of silver to gold to platinum and is therefore in the Russian coins as 1:5:14. This difference between the market and comes from the mint price, upon every different metal alloys and coinage costs. After the decree of 23 December 1803 amount to the minting costs of 3 per cent silver rubles worth mentioning for their sake. Platina is notoriously difficult to repentant and edit, but the cost of the stamp amounted to more than 37 per cent of the metal worth, which accounts for one ruble a Prägeschaß of Platina "1 ruble 5.13 kopeks." Because of the Platina is now three-ruble silver rubles' worth equal, it follows that its pure metallic value, rubles kopecks.

The market price of metals, like all commodities, depends mainly on the effective desire, therefore, according to their usefulness. We know that Mahler the Grubeil in Europe 40.5, grinding in Asia 40.75, and in Amerrika 46 meal so much silver supply than gold, and that the annual yield of esteren metal, the mines of the three parts of the world put together, on the average of 45.3 meals more , as the latter is. So if the prices are just focused on the rarity, then the value of silver to gold would be reversed as the quantities, ie as 1: to behave 45th But this is niemahls been the case for the value of silver and gold behaves as one currently, 15 of the Entdedkung before America was the relationship, such as 1:10. Assuming this relation to the quantities of in the metals, this results in the conclusion that the question of bigger after every pounds of silver to the consumer three meal than after each pound of vorrälhigen gold, with, through the consumption of silver at all 136 meal larger than that must be of gold. The Platina has indeed, with the exception of the beautiful splendor, all the noble metals Eigenschafren, but the art to process the same, even in childhood, and therefore its use-value, yet long not completely decided.

E. Th. Hohler.


Citation: Neues Archiv für Geschichte, Staatenkunde, Literatur und Kunst, Vol. 2 (Jan. 1830)

1845:

Weight of Platinum coins, minor variance!

Citation: Monnayes russes des derniers trois siècles, depuis le Czar Joan Wasiliewicz a l'Empereur Alexandre II ; T.F. de Schubert (1857)