For those who like lots of gold numbers. here's a snack 0

[RWB]

This is typical of monthly reports and transfers from small Assay Offices (this is Seattle) to the mints during the late 19th and early 20th centuries.

[Mike Meenderink]

Gold price in 1898 $20.67 /oz. 

$298,170.00 Worth of gold in 1898 is ($298,170.00 divided by $20.67) 14,425.25 ounces

14,425.25 ounces at todays gold price would be valued at (14,425.25 x1,987.79/oz)   $28,674,367.69 

That same $298,170.00 in cash in 1898 in today's cash would only be worth ( $298,170 x 33.00 Avg 2.65% Inf rate/yr) $9,976,768.00 

It appears in the above document the gold purchase price/valuation per ounce was slightly lower than the average due to the total ounces of gold listed. The gold ounces total 18,740.40 /oz. This number when multiplied by the historic gold price of $20.67/oz for the 1898 year equals $387,364.66. This represents a discrepancy of $89,194.00 less value. The document reveals the actual price per ounce value was appx $20.66/oz +- for 18,740.40 ounces.

Edited November 5, 2023 by Mike Meenderink

[RWB]

On 11/5/2023 at 12:15 AM, Mike Meenderink said:

The gold ounces total 18,740.40 /oz. This number when multiplied by the historic gold price of $20.67/oz for the 1898 year equals $387,364.66. This represents a discrepancy of $89,194.00 less value.

128,740.40 was the weight of total deposits after melting, which removed most dirt, iron oxides and magnetite. This does not account for the average fineness (given by "xxx") of all deposits. This seems to be what the member is calling a "discrepancy of $89.194.00 less value." Further, each deposit was handled individually and small errors in assay routinely accumulated. The Mint paid $20.66667 per ounce 1.0000 fine.

When the Seattle gold was received (i.e., "redeposited") in Philadelphia, it was melted, assayed, and weighed as one mass, and the corrected weight and value were calculated. Discrepancies between Assay Office and Mint were common, but usually amounted to only a few dollars with the Mint assay and weight accepted as correct. Dollar credits and debits routinely went back and forth between Mint and assay offices.

In some instances discrepancies were larger than expected or were consistently in one direction or the other (over or under). In these cases, an investigation was opened to find the cause. Some were due to assaying technique - just basics; but others were caused by "proof gold" (1.0000 fine) being contaminated or improperly used. Philadelphia Mint produced proof gold which was sold to assay offices.

[Sandon]

   Would it be safe to assume (1) that much of the gold in these deposits came from the Klondike Gold Rush and (2) that the Seattle Assay Office received much of the gold from that source due to its relative proximity to the Yukon in Western Canada?

[RWB]

Yes.

Newly mined gold flowed to San Francisco and Seattle AO from Alaska, Yukon, Australia and almost anywhere west of the Rocky Mountains. The US was the only major gold producing country that paid full price for gold (less a very tiny melting and refining charge). Britain required the miner to refine gold to Bank of England standard, then sell it at a mark-down  only to the BoE. BoE then sold the bars to the Royal Mint. (Within this the Goldsmiths' Guild maintained archaic assaying rules that allowed cheating metal owners and importers, as well as overcharging the Government for minting.)

Here's an official estimate of gold flow from some western sources.