August 12, 2010

USA, 1865 - 1904: 40 Worst Years for US Deflation, Measured in Metals

The End of the US Civil War marked the beginning of a 40 year period of deflation in the USA.  The US Price Index fell -53.9%.  The Index of Wholesale Metal Prices (Table 100: Warren &Pearson, 1932) fell -65.7% and between July 1864 - December 1904, -75.4% (Table 40: Ibid.)


It is well worth examining & comparing the New York prices of PMs in this, the longest deflationary period in US history.

1865: 1 Troy Ounce Platinum (manufactured, wholesale)  = USD$ 12. - 15.00
1865: 1 Troy Ounce platina (ore, retail)  = USD$ 6. 

1904: 1 Troy Ounce Platinum (semi-refined, whols) = USD$ 18.50
1904: 1 Troy Ounce platina (US/Cdn ore) = USD$ 12. - 15.

Conservatively estimating for similar products, platina & Platinum manufacturers rose +54% between 1865 - 1904. 

1865 - 1904: Silver Fell -55.85%
 

1865: 1 Troy Ounce Silver = USD$ 1.3384
1904: 1 Troy Ounce Silver = USD$ 0.5909

1865 - 1904: Gold Fell -53.5%

1865: 1 Troy Ounce of Gold = $ 44.44
1904: 1 Troy Ounce of Gold = $ 20.67

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