July 9, 2010

USA, 1842: Mint Price; Counterfeit Coiner Caught


The coin above was listed on the PCGS site at 8.24 g. rather than 8.359 g. It is unknown what percentage Pt(-Cu?) alloy the counterfeiter used, as these Gold-plated coins were apparently 0.9% - 1.4% underweight. Although Specific Gravity is unstated, it's possible this coin was at least 95-97% pure Platinum; the weight of the original, heavy Gold-plating is also unknown.

c.1842: 1 Troy Oz. Platinum (Counterfeit US Coin: 97% Pt) ~ USD$ 18.60
1842: 1 Troy Oz. Platinum (Russian Coin: 97% Pt) = USD$ 6.75

The notorious 1842 case of a gold counterfeiter offers tantalizing clues but few answers to the decline in US platina/Platinum prices from 1825.

The first Platinum refinery business was established by Joaquin Bishop in 1842.

See also:
1839: 1 Troy Ounce Platinum (USA: Semi-mfg, Wholesale) = USD$ 5.
c.1840: 1 Troy Ozt. Platinum (Russia: Scrap; Mkt) ~ $USD 0.83
c.1838: 1 Troy Ozt. Platinum (UK: Semi-Mfg, Whols.)  ~ USD$ 5.44

1840: 1 Troy Ounce Platinum (Mkt) ~ Fr 21. - 32. (USD$ 4.- 7.)  

 
c.1839/40: 1 Ozt. Platinum (Paris: Semi-Mfg, Bulk ) = USD$ 5.15 (Fr 26.41)
c.1839/40: 1 Ozt. Platinum (Paris: Mfg, Bulk) = USD$ 5.94 (Fr 30.48)
 
 
1840: 1 Troy Ozt. Platinum (UK: Refined, Ret.)  ~ USD$ 7.50
1842: 1 Troy Ozt. Platinum (UK: Refined, Ret.) = USD$ 5.82

1845: 1 Troy Oz. "Platina" (Paris: Dental Alloy: Semi-Mfg., Ret.) = USD$ 4.63 (Fr. 23.43 )

c.1840: 1 Troy Ounce Platinum (Mkt Low; 2.25x French POS) ~ USD$  3.00


From a March, 1843 newspaper (Berkshire Whig) of Massachusetts, USA.

c.1842: 1 Troy Oz. platina (Carthagena?: ~75% ore) ~ USD$ 2.60
c.1842: 1 Troy Oz. Pt (Colombia: Intrinsic) ~ USD$ 3.47
c.1842: 1 Troy Oz. platina (USA, ~75% ore) = USD$ 4.39
c.1842: 1 Troy Oz. Pt (USA: Intrinsic) ~ USD$ 5.85


The daily wage of a counterfeiter was at least $1., the threshold for profitability (over cost) about 33%.

LEONARD WHITCOMB was arrested February 4, 1843 in Cincinnati OH.

James Brown was a notorious counterfeiter of Boston, Ohio 235 miles upriver: his currency traded at 25% face.

"A special condition of the times made the counterfeiting business especially workable and especially direct. It was an era when 40 different wildcat currencies were abroad in the {Mid-}west, the bank notes issued by local banks. These currencies were different colors, denominations, and discounts. Much of it would not pass at 25 percent of face value, and the actual value fluctuated day to day, even hour by hour."


Perhaps dated news, Quarter-Eagle Counterfeit from 1843



Observation of the Mint Director, c.1842







 



1842: There was a 20% Tariff of foreign-manfactured Platinumware.





A low Pt price occasioned the birth of the US Platinum industry: specifically, founding of the Bishop Works and Platinum's widespread adoption by dentists, both cited 1842.





Repeated, this price appears to be the incorrect Russian Mint rate. The Mint Assayer's estimation for intrinsic value should be unimpeachable, but it's less certain by year or market-value, or if overestimating Platinum Rouble-valuation.


c.1842:  1 Troy Ounce Platinum (Russian Official Coin Rate) = USD$ 6.80


Citation: A manual of gold and silver coins of all nations struck within the past ...  Jacob Eckfeldt (1842) p.



The Platinum 3-Rouble (1828-45) was 10.3534 Grams (0.33286963 Ozt) .999 Fine Pt.
The Gold 3-Rouble was 3.595 Grams (0.115580208 Ozt.) .999 Fine Au.
In Silver three (3) Rouble weighed 54.4310837 Grams (1.75 Ozt.) .999 Fine Ag.
 
The Gold-Platinum ratio was 1: 2.88, the Gold-Silver ratio was 1: 15.141 ; the Platinum-Silver ratio was 1: 5.2573, officially.  

In nominal USD$, the premium on coin was 116.21% over the US Spot (~$5.85)

1842: 3-Rouble Au = USD$ 2.389
1842: 3-Rouble Pt (assumed, Russian Silver Rate) = USD$ 2.2635
1842: Three Roubles Ag = USD$ 2.262
 
Citation: A manual of gold and silver coins of all nations struck within the past ...  Jacob Eckfeldt (1842) p.




Citation: Niles' weekly register, Volume 75, (1849), p.91






In England, Platinum ingot was 2x more expensive than US platina. This suggest that for buyers in the USA,  platina was cheaper Colombian ore (not Russian ingot.)
 

 1844: 1 Troy Oz. Platinum (85% ingot, mkt)  = £ 1.50 - 1.60 (USD$ 7.29 - 7.78) 
 
Adjusting for Real Inflation since 1843 (6,867%), the 1843 US cited price for platina would be $ 279. (in 2009 USD$.) 

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