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davycoppit
Penny Pincher Member
USA
126 Posts |
 Posted - 05/22/2007 : 18:20:17
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I was just wondering what precious metals did durring the great depression? I tryed looking a few places on line and couldn't find my answer. Did they go up or down or stay the same? Thanks for your input.
david
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 05/22/2007 : 18:43:54
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I had read on one silver site (can't recall where) that silver took a hit during the depression. The price went from $1.29 per oz to 50¢ per oz, though silver reserves were much larger back then, especially for the US.
Gold did well by holding its value, considering it was still worth $20 per oz, but $20 back then is not what $20 is today. Factor in inflation and a $20 of today had the buying power of a half dollar back then. (Just a guess of course. Could have been more or less depending on whose inflation number you use.)
You must be logged in to see this link.
This site lists historical valuesunder historical charts, though the specific vlaues for gold and silver are not clearly listed, dollar or cents wise. The charts are a bit hard to read, though it does give a starting point for metals values back then.
I should have chosen "Cut-n-Paste" as a forum name, since that is what I do, mostly. |
Edited by - pencilvanian on 05/22/2007 18:46:39 |
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davycoppit
Penny Pincher Member
USA
126 Posts |
Posted - 05/22/2007 : 18:57:56
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| cool thanks for the info. Were there any investments that went up durring the depression? |
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Ardent Listener
Administrator
USA
4841 Posts |
Posted - 05/22/2007 : 19:16:38
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Didn't the U.S. goverment peg the price of gold to $20 then? At least in internationl exchanges?
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Fanaticism is doubling one's efforts, yet forgetting one's purpose.
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 05/23/2007 : 14:37:07
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quote:
Originally posted by davycoppit
Were there any investments that went up durring the depression?
Believe it or not, stocks were the investment to buy, since those companies and stocks that survived would pay out dividends to its shareholders. From "The Money Game" by Adam Smith, page 179, "Montgomery Ward went from 138 to 4. It was even worse for investment trusts (known today as mutual funds) United Founders dropped from fifty dollars to 50¢....the Long-Term Growth of the American Economy, saw their unmargined holdings in the bluest of American blue chips drop by 80 to 90 per cent."
For those who had the courage (and the stomach) to buy and hold at rock bottom prices, the investors were rewarded as the stock values moved back up, though they didn't reach their highs until 1954.
Gold mining stocks went up during the depression after the 1933 gold hoarding law was passed, since that was one way to own without getting hassled by the US Treasury.
I should have chosen "Cut-n-Paste" as a forum name, since that is what I do, mostly. |
Edited by - pencilvanian on 05/23/2007 14:39:01 |
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horgad
1000+ Penny Miser Member
USA
1641 Posts |
Posted - 05/23/2007 : 15:53:27
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"I had read on one silver site (can't recall where) that silver took a hit during the depression. The price went from $1.29 per oz to 50¢ per oz, though silver reserves were much larger back then, especially for the US.
Gold did well by holding its value, considering it was still worth $20 per oz, but $20 back then is not what $20 is today. Factor in inflation and a $20 of today had the buying power of a half dollar back then. (Just a guess of course. Could have been more or less depending on whose inflation number you use.)"
The great depression was a period of deflation. Money was in short supply and as such prices on just about everything dropped. So, keep in mind that what an once of silver or an ounce of gold could buy was increasing at the same time that the dollar price was staying flat or decreasing. So people holding dollars and gold increased their purchasing power as prices dropped. People holding silver probably lost some purchasing power, but not as much as that price moves suggests.
By the way, historically gold miners do best in times of deflation. Their costs go down while gold gains in purchasing power (even if the gold price remains flat or even falls some). This maximizes their profits.
In times of inflation gold miners do OK, but they are constantly struggling with rising costs. Inflation Up, Gold Price Up, Costs Up equals Flat Profits. |
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 05/31/2007 : 20:30:11
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Egg on my face.
I looked at the historical prices on
You must be logged in to see this link.
And looked up charts And graphs.
This listed the money amount for silver as fixed in London all those years.
Sorry for missing it before.
Average silver price
1915 0.561¢
1916 0.758¢
1917 0.899¢
1918 $1.019
1919 $1.336
1920 0.655¢
1921 0.663¢
1922 0.643¢
1923 0.65¢
1924 0.692¢
1925 0.692¢
1926 0.538¢
1927 0.583¢
1928 0.577¢
1929 0.488¢
1930 0.33¢
1931 0.304¢
1932 0.254¢
[b]1933[b] 0.437¢
1934 0.544¢
1935 0.584¢
1936 0.454¢
1937 0.438¢
1938 0.428¢
1939 0.35¢
1940 0.348¢
1941 0.351¢
1942-1944 0.448¢
1945 0.708¢
1946 0.867¢
1947 0.746¢
1948 0.70¢
1949 0.733¢
1950 0.80¢
1951 0.88¢
1952 0.833¢
From the price fixes in London, we can see for ourselves the following facts:
Silver has always had its ups and downs over the years and decades.
Even at the depths of the depression, when silver fell from .488¢ in 1929 to .254¢ in 1932, silver eventually bounced back from its lowest low to a respectable 40-50¢ range, dipping some during the start of World War Two.
Silver, you can't keep a good metal down.
1792-1813 silver was pegged at $1.293 per ounce.
1864- price $2.939, what would that be worth in current currency?
I should have chosen "Cut-n-Paste" as a forum name, since that is what I do, mostly. |
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pencilvanian
1000+ Penny Miser Member
USA
2209 Posts |
Posted - 05/31/2007 : 20:37:58
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Same as above, but for gold
1928 $20.66
1929 $20.63
1930 $20.65
1931 $17.06
1932 $20.69
1933 $26.33 London price, not official US Treasury set price
1934 $34.69
1935 $34.84
1936 $34.87
1937 $34.79
1938 $34.85
1939 $34.42
1940-1944 $33.85
1945-1948 $34.71
Gold, still shining brightly after all these decades.
1833-1871 gold sold for $20.65, I doubt it will ever sell for that price ever agian in our lifetimes.
I should have chosen "Cut-n-Paste" as a forum name, since that is what I do, mostly. |
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Gold and the Great Depression
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