GBP pounds sterling = pounds (14.5833 troy ounces) of sterling (.925) silver

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#1 Thu, Jun 16, 2011 - 5:33am
silvernomics
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GBP pounds sterling = pounds (14.5833 troy ounces) of sterling (.925) silver

I posted this in the evaluator thread but it might be of more general interest as an illustration of the wider application of the supposedly more recent phenomenon of currency debasement.

>>>>>>>>>>>>>>

If you think about it, pounds sterling was a term originally used to denote a specific weight of money: a pound (14.5833 troy ounces) of sterling (92.5%) silver.

Here's a visual illustration of currency debasement as it has occurred over hundreds of years

First of all, a literal fifty pounds of sterling silver, in troy ounces:

Now a synthetic "fifty pounds sterling", from which more than 75% of its literal meaning has been removed

It gets worse! £50 is now just this amount of silver

And this is where we are right now

You can see that the process of currency debasement is not a new phenomenon. It has been going on for a long, long time, far beyond our lifetimes. We are not in the final stages of a 40+ year process, it's the endgame of a 200+ year process.

Or in economic terms, we are getting into not merely a Kondratieff Winter but a Kondratieff Supercycle Winter.

The last Kondratieff Supercycle turning point saw a lot of economic, social and political events known as cycle revolutions: the agricultural revolution, the industrial revolution, the enlightenment, the American revolution, the French revolution. All these things were symptoms of a supercycle transition.

If we are headed into a similar epoch, it may be fair to surmise that things will change far more radically than a "muddle-through" hypothesis provides for.

Edited by: silvernomics on Nov 8, 2014 - 5:09am
Thu, Jun 16, 2011 - 5:38am
Spud
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Sterling

Thanks, that's very interesting the 2001-2011 pic is especially revealing as a Brit

Thu, Jun 16, 2011 - 9:39am
Number 47
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Nice write up silvernomics,

Nice write up silvernomics, appreciate the time you took.

Cheers

Thu, Jun 16, 2011 - 9:51am
SilverTree
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http://www.silverrecyclers.co

Thu, Jun 16, 2011 - 7:46pm
Dimeboy
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Troy Pound?

Is there not 12 troy ounces in a Troy Pound?

Is the 14.5833 troy ounces you mention account for a fraction of the Troy pound (% purity), or the number of Troy ounces in an AV pound (lb.)?

Fri, Jun 17, 2011 - 8:41am (Reply to #5)
silvernomics
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I stand corrected, Dimeboy.

I stand corrected, Dimeboy. Having checked, £ pounds sterling is derived originally from troy pounds. The 14.5833 was based on AV pounds.

The visual effect remains broadly the same, I think you'd agree!

Fri, Jun 17, 2011 - 1:05pm
bulliondan
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Very eye opening for us in

Very eye opening for us in the UK thanks!

Fri, Aug 9, 2013 - 7:24pm
DeaconBenjamin
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50 troy pounds

What are those? 3d? 6d? crowns?

A British pound (e.g., sovereign) 100 years ago would reflect 4 crowns = 4 x .841 oz = 2.83 oz (approx.) 

An ounce of silver is 13.25 pounds tonight, after the close of trading in NY. So a pound's worth of sterling -- 2.83 oz -- would cost approx. 37.5 pounds today. 

US is easier. According to coinflation.com, a US silver dollar has $15.86 in silver, while 10 dimes (.72 oz, compared to the .77 oz in a silver dollar [don't ask]) has $14.83 in silver.

8 Swiss francs (until 1968) contained 1.074 oz of silver. [Don't include the post-1932 5 franc coins -- they hold 3 francs worth of silver.] An ounce of silver today costs 18.94 francs. So 1.074 oz would cost 20.35 CHF. In other words, it takes 2.5 modern Swiss francs to purchase a silver Swiss franc. Amazing! Unparalleled, as far as I can see. 

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