1827-40: 1 Troy Ounce Gold (Russian valuation) = USD$ 19.20
1827-40: 1 Troy Ounce Platinum (Russian valuation) = USD$ 7.02
1827-40: 1 Troy Ounce Silver (Russian valuation) = USD$ 1.30
The introduction of platinum coinage, of largely unknown and poorly understood value, certainly cost the Russian Mint dearly. As the largest buyer of platina & producer of Platinum from 1824-1840, the Russian government unavoidably 'set the global price' for Platinum, and created an epic price distortion.
The introduction of platinum coinage, of largely unknown and poorly understood value, certainly cost the Russian Mint dearly. As the largest buyer of platina & producer of Platinum from 1824-1840, the Russian government unavoidably 'set the global price' for Platinum, and created an epic price distortion.
Among financial counselors, Russia's ongoing monetary crisis (falling value of assignats) prompted a radical statist solution to both paper inflation and the dearth of Silver. This sovereign response did not necessarily exaggerate the notional currency & intrinsic values of the metals, but the introduction of a Platinum standard failed for several important reasons.
A few points to note about the abortive tri-metallic monetary experiment:
1) As a local currency, Russian merchants and peasants generally viewed the new coins suspiciously. The mystical psychology of money was probably the decisive factor, but ignorant peasants could hardly appreciate the intrinsic value of a much rarer metal if professional bankers were also uncertain. Nevertheless, Platinum money failed almost immediately: the Russian people preferred paper of declining value!
2) The official rate was insupportable almost immediately, the coins disappeared from circulation for various reasons. Though illegal, there were persistent reports of smuggling platinum out of country.
Citation: Chemistry and metallurgy, as applied to the study and practice of dental surgery, By Aaron Snowden Piggot (1844) p.425
2) The official rate was insupportable almost immediately, the coins disappeared from circulation for various reasons. Though illegal, there were persistent reports of smuggling platinum out of country.
Citation: Chemistry and metallurgy, as applied to the study and practice of dental surgery, By Aaron Snowden Piggot (1844) p.425
Citation: Cours d'économie politique fait au Collège de France, Vol. 3 By Michel Chevalier(1850), p.173
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1827: 1 Troy Ounce platina (ore @ St. Petersburg) = 21.88 руб (Banco)
1828-44: Consistent Russian official intrinsic valuation
1819 - 1844: Total Yield of 1,125,276/1,053,289 ozt worth 7 mln руб
1819-1844: 1 Troy Oz. Platinum (SPb est.) = 6.6458 руб
c.1828/9: Russian PM ratios: Where 1 Фунт =13.166 ozt,
1830: 1 Troy Oz. Gold (fine @ St. Petersburg) = 25.2953 руб
1830: 1 Troy Oz. Silver (fine @ St. Petersburg) = 1.7279 руб
1830: 1 Troy Oz. Platinum (fine @ St. Petersburg) = 9.0126 руб
Citation: Jahrbuecher der Geschichte und Staatskunst, Pt 1 (1830) p.34
According to this report in 1855, refiners debased the ingot. If "immediately" is to be inferred correctly, the debasement occurred around the time of demonetization.
1855:
Coinage failed for "the very considerable variations of the metal price and impossibility of fixing a permanent monetary value on the coin."
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