The usefulness of $20 gold pieces in the mid 19th century

dan1ecu

I got to wondering who used $20 Liberties back in the 1850's. That was probably more than a week’s pay for most people (I’m guessing), so the average person would not have carried them around. Could they have been exchanged between banks to settle debts? Perhaps they were used in making payments to foreign countries? What do you think? I’d also be interested in how much $20 in 1850 would be worth in today’s dollars. Does anyone know how to calculate this?

Dan

MrKelso

.9675 troy ounces of pure gold.

I would think today just for gold content they would be worth spot or just under spot $current spot is $354.40

Numismatically a lot more in MS

relayer

$20 in 1850 would be $454 today.

Inflation Calculator

GP

well with that inflation, I would say they were spent the same way $500 bills are now, how that is, I have no clue

GDJMSP

dan1ecu - You are correct in your thinking. $20 gold pieces were not much used by the general public except for brief periods. During the early years of US gold coins - prior to 1830 - the inflationary price of gold relative to silver was such that the gold coins were hoarded and melted for their gold content. As a result very few & in some years no gold eagles were even minted.

Then in 1834 the value of gold to silver ratio was reduced and US gold coins were made smaller. Gold coins were once again being minted as they were needed for business transactions. The double eagle first appeared in 1849 with the Calf. gold rush. It's primary use was for bank reserves & international transactions. Because of the abundance of gold at this time - the gold to silver value ratio dropped yet again and silver coins were now being hoarded while gold freely circulated. Even though the general public did not use the $20 dbl. eagle that much, for the reasons you already mentioned, it was this period - the 1850's - that saw the greatest circulation of gold coins in general.

During the early years of the Civil War gold coins were once again hoarded and almost completely disappeared from circulation. At this the govt. introduced paper money. And from that time on gold coins, in particular the larger denominations, never saw much circulation.

JLW

<< <i>During the early years of the Civil War gold coins were once again hoarded and almost completely disappeared from circulation. At this the govt. introduced paper money. And from that time on gold coins, in particular the larger denominations, never saw much circulation. >>


This is quite true, and the elaborate designs used on paper money of the era, (as well as being backed by gold), were necessary to get people to accept it. Got a sneak preview of a new hoard of these bills a couple of months ago, all in mint state and slabbed. They are truly works of art. Press release should be out soon if not already.
Joe

MrKelso

<< <i>$20 in 1850 would be $454 today.

Inflation Calculator >>



Thats pretty cool

agfox

Wasn't inflation in california during the gold rush a serious problem? I remember reading that in the 1850's and later that inflation was so bad a decent dinner in San Fransico cost $5, a whole weeks earnings for a factory worker in New York. Outside of San Fransico and bank vaults these were probably anything but common.

MrKelso

<< <i>Wasn't inflation in california during the gold rush a serious problem? I remember reading that in the 1850's and later that inflation was so bad a decent dinner in San Fransico cost $5, a whole weeks earnings for a factory worker in New York. Outside of San Fransico and bank vaults these were probably anything but common. >>



I think your right I remember reading that an egg at any general store was a dollar each and inflation was running very high during the rush.