Question about "Old-Money"

[Ice Rich]

Hello all,

Long story but could someone please tell me how much 1000USD (in 1959) would be in todays money in GBP (the equivalent ammount).

Thanks

Rich

 

[Old Turkey]

I believe www.eh.net will provide you with the answer

 

[clv101]

$6712.03 in the year 2005 has the same "purchase power" as $1000 in the year 1959.

 

[jpmonkey69]

This is REALLY wierd... I was thinking yesterday wouldn't it be good if there was a site that did this, and in fact, I nearly posted the same thread...



Thanks!

 

[Sequoia]

Hello all,

Long story but could someone please tell me how much 1000USD (in 1959) would be in todays money in GBP (the equivalent ammount).

It depends how you look at it.

Using House of Commons inflation data, the pound is worth about a sixteenth today of what it was in 1959. And the average exchange rate in 1959 was $2.8 to the £.

So, if you'd exchanged that $1000 for £ in 1959, you'd have got about £357. Using that inflation data, you'd need £5712 today, to buy what that £357 (or $1000) would have in 1959. So you could argue that $1000 in 1959 is worth £5712 because that's what you'd need to buy the same value of goods.

However, if you'd kept that money in dollars, you'd have to do this calculation a different way, which would be to look at US (not UK) inflation data from '59 to current date, THEN convert at $1.74 to the £ (-ish).

Another way to look at it is that if you'd stuck that $1000 in an old sock, and took it to the bank today, it'd be worth £574, because that's what they'd give you.



As an aside, if you'd invested that £357 ($1000), even with compound interest, you'd need to have achieved an average of a tad over 6% per year, every year, to have a sum with the same spending power today.


All figures are approximate.