Economics of using mexican silver dollars

[hasevir]

Just struck me how they appear so very popular spending money back in the days. Which led me down some research.

In short when spending mexican silver dollars, or if you like free silver dollars, -a for reasons very popular subject in some quarters- you gain a whopping +80% spending money. Being as it turns out perfectly interchangeable with american dollars and the poor locals in asia and africa still on silverfooting are none the wiser. Besides its all colonial metal anyway. Not that it will fool any briton in the empire pr that they would accept anything but pounds (although in the right years actual gold and silver may look very attractive with pounds off any metal foot), . But you will be a lot richer buying services and products in say China whether shore or inland.

How does it work? Assuming a top quality mexican silver dollar. No one, aside from maybe the mexican goverment, should have much reason to complain as you use 24,44g of pure silver and another 10% other metals. just like the mexican mint does it. In fact they are better quality than some of the older mexican dollars. Using a 1923 price of 67c/troy ounce, some 5% melting, cheapo 10% metals and casting fees. Granted the forgery job of getting the mold carved isn't calculated here. It needs afterall to look like a geniuine mexican dollar.

The metal to troy ounce to 24,44g gives a multiple of 1,272646 and a well heeled diletantte turning $1000 @67c/troz (68,34 with the costs?) = 1463 troz of silver and using the multiple for the 24,44g pure silver content vs troy ounces at 31,10346g the end result is 1862 mexican silver dollars. As if by magic you now have 80% more.

Granted still needs that forger to carve the dies which shouldnt be illegal as no attempt to forge usd is made, only foreign money. Given that all other kinds of stealing is ok too starting with patents.  Now actual USD silver dollars... thats a different case (and even more profitable @24,057g pure silver ie an extra multiple of +1,6%). In fact the us banks stole all the chinese gold from the reublic with this scam using heavier socalled trade dollars. Overpaying for the gold and then the trade dollar was demonitized almost as if the federal reserve was in on the crime. Oops. Note later 1932 silver prices of 28c/ troy ounce vs the pretty high still 1923 price at 67c. 67/28*1,862= 4,4555 ow dear a +355% profit! Paying a mere 20% more than market price for the gold? What a minor fee in the grand scam.

https://www.macrotrends.net/1470/historical-silver-prices-100-year-chart (remember to remove especially the covert to modern price thingy.. boy how such coversions annoy me as they are inaccurate to level silly)

..and various wikipedias..

[Atgxtg]

3 hours ago, hasevir said:

(remember to remove especially the covert to modern price thingy.. boy how such coversions annoy me as they are inaccurate to level silly)

..and various wikipedias..

Let me guess, inaccurate in that they covert the relative value of money and purchasing power but fail to take into account the change in relative value of items over the years?

For instance the price of silver in 1932 was  30¢/oz, and the price off eggs was 18¢/doz. so one could buy about 20 eggs for an ounce of silver. Now in 1923 the price of silver has risen to $23.44/oz. giving silver about 78 times it value, but you can't get 1560 eggs (130 dozen) for $23.44. You'd be lucky to get 10 dozen for that price. So an ounce of silver will only purchase about 6 times as many eggs as it would in 1932.

Any pretty much every other item has a different increase as items get cheaper or more expensive to produce or transport over time.