No. of Recommendations: 2
We're in Sitka, Alaska today - a place where "the deal (or folly) of the century was made, when the US bought Alaska from the Russians at what we now think was a pittance of $7.2 million bucks (only rivaled by the Dutch "purchase" of New Amsterdam (NYC) for $24 from some transient Leni Lenape Indians.
Located on the western side of Baranof Island, Sitka sits at open water on the Pacific Ocean. When moored in the harbor of Sitka, the visage one gets is of a Swiss Alpine town ringed by the snow-covered mountain chain – somewhat confused by the presence of fishing boats in the harbor.
Sitka was made the capital of Russian America in 1808, when Russia sought to import sea otter pelts. Upon nearly exterminating the species, the territory no longer served their purposes and Sitka was the site of the Alaska Purchase on March 30, 1867 by the United States who bought Alaska from the Russian Empire for $7.2 million. A useful way to see it is that the Alaska price of $7.2 million would be equivalent to roughly 348,000 troy ounces of gold at that rate. At today’s spot price of about $4,751.88 per troy ounce, 348,000 troy ounces would be worth about $1.65 billion (not so cheap after all).
Jeff
No. of Recommendations: 3
At today’s spot price of about $4,751.88 per troy ounce, 348,000 troy ounces would be worth about $1.65 billion (not so cheap after all).
Not as cheap as originally, for sure, but we've already extracted quite a bit of that gold in subsequent years (Alaska Gold Rush anyone?) and the quantity of oil we've extracted probably balances out that amount. And less economically, the largest parks in the nation.
Pete
