Money in Harry Potter: Encyclopedia II - Money in Harry Potter - Estimates of worth

Money in Harry Potter - Estimates of worth

J.K. Rowling has stated in an interview with Comic Relief that a Galleon is worth "about five pounds." However, it is likely that the author has not thought this out in detail, or that the significantly different social structure (including the apparent lack of mass production) of wizardkind may mean significantly different prices for the similar items in the Muggle and wizarding worlds. The value of wizard money might vary greatly depending on the source used.

Money in Harry Potter - Low-value theory

In the book Fantastic Beasts and Where to Find Them, two pieces of information are given which hint at how much wizards' currency is worth in comparison to real-world money. Firstly, it is said that £174 million raised for charity is equivalent to 34,000,872 Galleons, 14 Sickles, and 7 Knuts (the figure is simplified to 34,000,000 galleons in Quidditch Through the Ages). It is also stated that the book costs £2.50, or 14 Sickles and 3 Knuts.

The first piece of information suggests that 1 Galleon is worth around £5.12, but according to the second figure 1 Galleon is approximately £3.01. It is implied that the first piece of information is an exact conversion, but the second figure may not be exact (perhaps wizards have to pay more for the book than Muggles, who benefit from mechanised printing and population-induced economies of scale): hence, it may be sensible to assume that the first figure is correct.

Thus:

• 1 Galleon is worth about £5.12, or US$9.06
• 1 Sickle is worth slightly more than 30 pence (30.103...)
• 1 Knut is worth slightly more than 1 penny (1.038...)

Harry pays 7 Galleons for his magic wand. This is equivalent to about £36 (roughly 65 US dollars or 55 Euro according to conversion rates in June 2005), which would put it on a par with some of the more expensive merchandise wands sold.

A currency converter was produced by CNN in 2001, which assumed that money in the Harry Potter world was worth less than the figures established in this article. It used the figure that $3.99 (the price of the Fantastic Beasts and Where to Find Them book in US dollars) = 14 Sickles + 3 Knuts. A currency converter using the figure given by Rowling herself can be found on the Harry Potter Lexicon.

If a Galleon is indeed worth about five British pounds, then we may be sure that it is not made from real gold (unless wizards have access to large amounts of very cheap gold, which technically is wholly possible given that a Philosopher's Stone is in existence up until the end of the first book in the series). The price of an ounce of gold is currently about US$425 (£225) per troy ounce, or somewhat over £7 per gram. To be worth five pounds in intrinsic value, a gold coin would need to weigh under a gram; to give an idea of size, a US dime weighs over 2 grams, and is made of metals far lighter than gold. In fact, because an ounce of silver is worth about $7 (£3.70), it's more likely that the Galleon is actually silver, and only coloured gold (by either magic or cladding). Another possibility is that it is made of gold, but its exchange value is magically reduced so that the coins can be reasonably large.

Money in Harry Potter - High-value theory

It is stated within the novels themselves that a copy of a daily newspaper cost between 1 and 5 Knuts. This would suggest that a Knut is worth between 10¢ and 50¢, making a Galleon worth somewhere between $49.30 and $219.50. If in fact a Galleon is worth about £51.20, or US$90.60, then the remark in Fantastic Beasts and Where to Find Them can be explained as a simple numerical error, writing 34,000,000 for 3,400,000. That it persists throughout the book is easily explained by its having been written by Muggles who don't know any better.

Wands would thus cost several hundred dollars (which would explain why most wizards only seem to have one), and would make the start-up cost for Fred and George’s store in Harry Potter and the Goblet of Fire around $100,000 (which is closer to what it would cost in the real world to buy the property and initial inventory). It would also bring the value of a gold galleon more in line with the actual value of gold.

Dobby mentions in the Goblet of Fire that Dumbledore is paying him one Galleon a week for working at Hogwarts. He also mentions that Dumbledore offered ten Galleons a week. This would make his pay on the low-Galleon scale five or so pounds a week, which is quite underpaid (Although this may have to do with Dobby being a house-elf and not a normal human). On the high scale, it would be between fifty and two hundred pounds a week, much more reasonable. The ten Galleons a week seems quite incredible then, being then on a scale of five hundred to two thousand pounds a week.

The high-value theory would also explain why Ron has never had a Galleon before, and why the Weasley family vault only contained one Galleon and a few Sickles. If a Galleon were only worth $10, the Weasleys would be in dire poverty rather than simply poor.

This idea of Galleons having greater value than pounds is also implied when Harry gives Fred and George Weasley his Triwizard prize money - a thousand Galleons. Although it is known that to rent a shop on Diagon Alley is expensive, 1000 Galleons seems to be enough - the Weasley twins even use part of the money to manufacture their joke products.

Adapted from the Wikipedia article "Estimates of worth", under the G.N U Free Docmentation License. Please also see http://en.wikipedia.org/wiki