USA, 1865-89: Worst 25-Years for US Deflation, Measured in Metals

The End of the US Civil War beget a record 25-Year period of deflation in the USA.  The US Price Index fell -58%. The Index of Wholesale Metal Prices (Table 100: Warren &Pearson, 1932) fell -64.6% and between July 1864 - December 1889, -70.9% (Table 40: Ibid.)

In 1889, speculators attempted to corner the market in Platinum.  The average monthly Price of Platinum had risen to $16. and neared a US record $20./oz., but the price dropped to $8.-9. immediately thereafter. 

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

1889: 1 Troy Ounce Platinum (semi-refined, retail) = USD$ 20.
1889: 1 Troy Ounce platina (Russian ingot) = USD$ 16.


Conservatively estimating for similar products in 1865, platina & Platinum manufacturers cost about +25% more in 1889.

1865-89: Silver Fell -30%
 
1865: 1 Troy Ounce Silver = USD$ 1.3384
1889: 1 Troy Ounce Silver = USD$ 0.9351

 
1865-89: Gold Fell -53.5%

1865: 1 Troy Ounce of Gold = $ 44.44
1889: 1 Troy Ounce of Gold = $ 20.67

USA, 1865 - 1894: Worst 30-Years for US Deflation, Measured in Metals

The End of the US Civil War marked the beginning of a record 30-Year period for deflation in the USA.  The US Price Index fell -64.25%.  The Index of Wholesale Metal Prices (Table 100: Warren &Pearson, 1932) fell -71.9% and between July 1864 - December 1894, -81.8% (Table 40: Ibid.)


It is well worth examining & comparing the New York prices of precious metals for this, one of the longest & most severe deflationary periods in US history.

By 1889, the average monthly Price of Platinum had risen to $16. (and approached $20./oz.) but retreated to $8.-9. for a couple of years.  By 1895, it was again nearly the Price of Gold.  The price of Platinum was volatile but rising.

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

1893: 1 Troy Ounce Platinum (semi-refined, retail) = USD$ 10. -13.
1894: 1 Troy Ounce platina (Russian ingot) = USD$ 9.33


Mid-1893:


Apparently, the markup on platinum salt solution sold to photographers was 100 - 200%.  One manufacturer was enraged when a home chemist dared publish the economical recipe.

Citation: The American amateur photographer, Volume 5 (1893), p.55

Citation: The American amateur photographer, Volume 5 (1893), p.124


Citation: Western Druggist, Volume 17 (1895) p.341


Conservatively estimating for similar products in 1865, platina & Platinum manufacturers probably cost about the same in 1894.

1865-94: Silver Fell -52.57%
 
1865: 1 Troy Ounce Silver = USD$ 1.3384
1894: 1 Troy Ounce Silver = USD$ 0.6348

 
1865-94: Gold Fell -53.5%

1865: 1 Troy Ounce of Gold = $ 44.44
1894: 1 Troy Ounce of Gold = $ 20.67