Wizard Money Makes No Sense!

Hey, brother. Ben do you know who is conspicuously absent from the Harry Potter books Harry’s family. Now yes, I know his parents were murdered that sort of hope set up for like the entire story But it’s still weird that in seven books his grandparents aren’t mentioned like at all. What happened to them. How old were his parents when they died what, 20? 21? And all of their parents were dead by then. Wow that is some very bad luck. Wait, 21 thou, what what did they do? How did they have that like huge pile of gold. How rich was Harry? *Snazzy intro music* Ben, much like quidditch the Wizard currency system is absolutely Bonkers. Now in case you don’t remember, and I don’t blame you If you don’t because it is absolutely ridiculous; wizards have 3 coins Galleons, Sickles, and Knuts. Problem number one right out of the gate They pronounce what is clearly supposed to be a silent K in Knuts. Are you kidding me? Did nobody k-know what they were doing. And for a society that doesn’t teach its population math They have made the value system of their money Completely confusing. It’s 29 Knuts in a Sickle and 17 Sickles in a Galleon. That means it’s 493 Knuts in a Galleon. So a single Knut is worth .002 Galleons. A reference, a penny compared to a dollar is 1/100 or .01. That means by comparison a Knut is 5 times more worthless to a Galleon than a penny is to a dollar. Yeah, and people complain about the U.S. Not being on the metric system. But to be fair Galleons are worth a little bit more than dollars so it’s not an exact comparison. A Galleon is worth about 7 dollars and 35 cents in U.S. dollars. Those numbers come from the prices listed on the ‘Fantastic Beasts and Where to Find Them’ books you could actually, physically purchase and a full breakdown of all that can be found at the Harry Potter Wiki. I will leave a link in the description so you can check it out. Either way though it means in U.S. Dollars, a Knut is still only worth about 2 cents, so yeah, Basically worthless. And really Sickles aren’t much better at 17 Sickles to a Galleon, a single Sickle is worth .058 of a Galleon. In the United States that would be worth about 46 cents. So imagine if you will, if all of our currency in the United States consisted of a penny a Half Dollar and a 7 dollar bill. Man that would make things easy. Can you imagine trying to buy something like a 13 dollar item with Wizarding money? It would come out to 1 Galleon, 12 Sickles and 7 Knuts and you get half a Knut in change. And you can’t Tell because we use jump cuts on this channel. But it took us a whopping 50 Seconds to figure out the change on that exchange. And can you imagine How heavy it would be carrying all that gold around all the time? I mean, Screw a wallet you need like a whole Knut sack that can’t be good for your K-Knees. Again to be fair though, It’s not like muggle money and wizarding money are really that comparable and Muggle money doesn’t always make that much sense either. Well in terms of denominations it does but more in terms of how it Exists or what It’s worth or why it’s worth anything. The short answer is our money is worth something because we believe it’s worth something. This is called the fiat system of money and basically means there’s no physical Commodity backing up the value of our money like gold or silver. Instead the value comes from the government Declaring that this currency is worth something and then the value is determined by the relationship between supply and demand. However, this has only been the case in the United States since 1971 which seems shockingly recent until then we operated on something called the gold Standard. That meant that the value of our money was literally backed by gold and the government couldn’t print more money than they had gold in the vault; and You could literally walk into a bank and give them a dollar and demand its value in gold back to yourself. Which I’m kind of sad we missed out on. But those are the days of the past now. We just have money That’s worth its value in Faith instead of gold, but it makes me wonder: Why did we ever choose gold to begin? Well, besides being really pretty and sparkly the answer is science. Here’s the reasoning after you decide that your country needs something for currency You need to decide what that currency will be and it should probably be naturally-occurring, so no one can just go manufacture. It naturally-occurring means it has to be an element and Obviously, you’d want it to be solid so that wipes out all of the gases and or liquids you don’t want it to be radioactive, reactive, or corrosive and you need it to be rare enough that it’s difficult to find but not so rare that it’s Impossible to find. That narrows the entire periodic Table down to five elements: rhodium, palladium, silver, platinum, and gold. Of those 5 silver tarnishes easily, rhodium and palladium were only discovered in the 1800s, and Platinum’s melting point is so high that earlier generations could not have effectively Melted it down into actual currency, with leaves us with the winner, Gold. And that brings us back to Harry Potter which continues to be nuts. Sorry Knuts. No, actually just nuts that time.Wizards Definitely don’t use the gold standard because well They use actual gold rather than coins or bills that Represent gold. They appear also to be on a fiat system of some sort but they just happen to use as currency the metals we muggles consider to be the most valuable; But I would bet their reasoning is far different from ours. if I had to guess I would bet gold, silver, and bronze all fall under Gamps elemental laws of Transfiguration. Meaning they can’t be created out of nothing nor can they be duplicated. That is unless you have a Sorcerer’s stone. But honestly who needs one I mean the exchange rate with dollars is so bananas I cannot believe wizards are not taking advantage of this. Seriously trade in your 7 dollars for a Galleon then go sell that Galleon for its actual weight in gold to a muggle. A Gram of Gold, by the way is worth $40 so you can probably pick up more than $40 back to the bank exchange it for more Galleons And then rinse and repeat until rich. Come on sheamus your dad’s a muggle, mom’s a witch you start working that exchange fraud You don’t even need to go to hogwarts man. By the way it only took me about 20 seconds to figure out how to exploit exchange fraud which is way less time than it took me to figure out the change on the Transaction earlier. So well how rich is Harry then? Well, extremely. But it’s hard to be exact because even within the books the value of a Galleon seems to just like go all over the place in 1 scenario Molly takes out a single Galleon from their vault to buy all the Weasley’s school supplies and then in another scenario Harry drops 30 Galleons like it’s nothing on 3 pairs of Omni-oculars for him, Ron, and Hermione to use for a couple hours, One day. Although Maybe it should have been a little bit longer if Krum could do basic math and realize he didn’t need to catch that snitch Just yet, but then again They don’t appear to teach math to the kids in the wizarding world So whatever. And how did Harry’s parents get all that gold? Well, their jobs are never really revealed in the books But honestly, I don’t think that really did much work for it. By all accounts They were pretty much just right in The Order of Phoenix after they graduated school and at that point James was Already rich. An article on Pottermore actually outlines the Potter family history and it turns out It was James’s father who actually made the family fortune by creating slick Easy’s hair potion. He later sold the company for great profit and then him and his wife died of dragon pox shortly after James Married Lily. They never actually got to meet their grandson Harry who ironically like his father, had Untamable hair. And there you go Ben money in the wizarding world is just crazy, But my question for you and everyone else is: have you ever spent an Unusually large amount of something on something stupid like Omni-oculars? Let me know down in the down in the towel section down below. These socks are amazing. Yes, thanks for watching this video Please leave a like on if you haven’t already and subscribe so you don’t miss any future Harry Potter videos if you want to learn how to fix quidditch you can check out Ben’s video on that right here Or if you want to learn about how Dumbledore had his own horcrux you can check out that video right here. But Ben, that’s everything I’ve got for you today, man. I will see you in another life bother.

100 thoughts on “Wizard Money Makes No Sense!

  1. No the publics right to own gold ended in 1933, any american that owned gold between 1933 and 1971 was arrested, gold confiscated plus fines and jail. Thank FDR for that fascism.

  2. Oh and the official conversions between dollars and dollars is obviously nonsense. A galleon sized goldcoin comes in at more or less 800 dollars. The sickles at 5 dollars and knuts at.. yeah.. 10c. Which makes that 1:27:500 quite broken. But then, rowling does not seem to understand money very well. Or how it is accumulated.
    Like essentially seemigly assuming old families are rich with deep vault numbers.. because… umm.. they have been earning interest rates. Meanwhile everyone spends like a poor person, the kind that ends up in debtors jail with 20k in payday loans at 450% interest rates. That is everything is if at all possible spent immediately and nothing is much saved for the future. Contradicting above info.

    And we know how forgiving goblins are to unpaid debt. Good luck getting away with personal bankruptcy or even debtors jail. Pretty sure you are enslaved in harry potter. Ofcourse intrest rates keep on running so no escape for you ever.

  3. Rowling is really bad at math and numbers. Sirius wants told Mrs. Weasley "You are too young to remember…" when she was about twenty years older than him.

  4. US money has been based off oil since the abandonment of the gold standard by way of agreements with oil producing nations in the middle East and south America to price oil solely in the US dollar, which is the Petrodollar system

  5. Screw a $13 item. Try buying a high-end item like a $3,500 television. Just imagine how many galleons sickles and knuts you would need to purchase such an item 😵

  6. How to make money in the wizarding world
    Step 1: find a cave
    Step 2: find a transfigure alteration spell book
    Step 3: read book
    Step4: profit

  7. I mean you could work that exchange fraud, but if it's discovered would it not then be breaking the secrecy of the wizard world? Tbh I wouldn't be risking the troubles of people asking questions lol

  8. you literally solved how Harry Potters parents were rich. His mom was muggle, she did that illegal gallion to gold to currency exchange.

  9. In Harry Potter, they have the ability to go all dr who and create a small space into one larger so carrying it would be easy

  10. Really, really late to this party, but I want to point out that what you describe as "exchange fraud" is, in fact, perfectly legal and not at all fraudulent. It's known as "arbitrage" and many, many in the financial world make their livings practicing it. It's most often done with currency and happens exactly as you describe. However, it's not at all as easy to make a fortune as it would be by exchanging real-world currency and wizard money – given that everyone knows about it, the profit margins are razor-thin and the spreads between currencies often last only seconds (or less!) before differences are eliminated by the practice of arbitrage itself.

    Arbitrage is nonetheless quite important in keeping financial affairs around the world in good order, in that the process itself "regulates" the value of currencies and keeps them stable relative to each other. Automatically, even – no government intervention required. It's a fully free-market phenomenon.

  11. I think the real explanation here is that J. K. R. Is really bad at maths (I think she also stated that when saying that hogwarts has around 400 Students)

  12. Money doesn't have value because we believe it has but rather we agreed it has. this is quite a difference, and it is essentially for our modern trading system.
    money is just a trading object, but the fact that the material itself is more or less worthless made our lives so much easier. just imagine getting a sack of salt as payment.

  13. Interesting concept: You always need something backing Currency to give credit. The US made a deal with Saudi Arabia to only sell oil in USD, giving it a commodity backing that helps keep it stable.

  14. Literally, Harry Potter has one of the deathly Hallows. So he is rich. maybe…
    Well, I don't know actually.😐

    Lupin, Sirius, Lily, James, Hagrid(Swagrid)😎, Dumbledore gave him 💰

    Dumbledore and Hagrid is donating

  15. "government couldn't print more money than they had gold in the vault." That's not how the gold standard worked under bretton woods. It was still a fractional reserve system. A peg is not the same thing as full reserve banking, and even with a gold standard you can have floating exchange rates.

  16. Yes my dad spent 656 thousand dollars for a priceless painting like wat is the painting going to don’t for us?

  17. The wizarding money system is Rowling’s joke on the pre decimal Imperial system of money in England in Australia. They used to have Pounds, Shilling and Pence. There were 12 pence to a shilling and 20 shillings to a pound. You can see why we stopped using it

  18. 0:52 Actually… Most of the words pronounced with silent k’s today used to be pronounced with k-sounds. Like K-nife, K-night etc. But because reading and spelling was a rarer skill at the time than it is today, people just pronounced the words however they wanted to. For what it’s worth: that’s really how language evolves generally – by enough people making the same mistakes.


    (I have finished every book, and now starting again but watched only 2 movies, and that was like a year ago, so I’m pretty clueless when it comes to some of the pronunciations)

  20. I always assumed it was actually the Order and maybe others doing a wizard go-fund-me for Harry Potter. Tell me that wouldn't explain a literal fortune.

  21. the potters are actually an old wizard family and they basically are all rich, except the weasleys who are even looked down on for that.

  22. also the moneysystem in HP was put in place by goblins who dispised wizards and actually actively try confuse wizards at any given opportunity, while there were goblinuprisings due to unfair treatment, this stopped after they controlled the money. this makes goblins probably the most powerful magical creatures in HP

  23. So… you're telling me you pronounce Aknowledge "Anowledge"?

    English isn't the only language in the world, and Knut might well be a word from Old English or Proto-Germanic. Perhaps even Goblin.
    The problem is the sheer maths of the Magic Monetary system, it's soooooooo bad!
    Prime numbers? REALLY? You can't divide them by ANYTHING but themselves and one!
    And that's not even starting to say how poor a choice it is to leave all of your very valuable belongings to a species of magical beings with whom your kind had always had a massive rivalry, and whose people are still VERY BITTER about not being allowed to carry a wand and all the "Goblin items are not sold, it's rent until death". (And even that sounds like a massive attempt by Goblins to fraud wizards and call them thieves because the cultures are different. SPECIFY IT'S A RENT, NOT A PURCHASE)

  24. Supercarlinbros: lets blabber about anything and last two mins we will talk about the actual topic to make vid look big

  25. Not to mention when Fred and George asked for 5 galleons for a trinket at their store then Ron had to ask for a discount and the made it 10 galleons

  26. A giant coin can not be worth only $7 and change. It would make more sense if the Gallion is somewhere in the $50-$200 range.

  27. When I saw a Galleon worth no more than $8 and was made of gold, I was wondering the samething about buying it, selling as a gold commodity and do it again

  28. Was here for procastination – and then I learned something about currencies etc.
    How dare you ? You took my oldage childhood 😀

  29. My mother passed away when I was 20, my sister was 16. It's not that impossible that both sets of grandparents would have died, especially since the Wizard World is basically medieval.

  30. So in the first book, Harry gave an owl five knuts for delivering the paper. Does this mean that the newspaper for that day only cost about 15 American cents?

  31. Harry inherited the Sleakeasy Hair Potion fortune. Among other money. He was the Potter sole heir since he has no cousins or Aunts or Uncles on his father's side.

  32. Harry was rich because his grandfather Fleamont Potter invented the hair potion that Hermione wore to the Yule ball in the book. Also the Potters weren’t flashy so they had more saved.

  33. The Potter's are actually a long line of purebloods (except for Harry, who is a half-blood) so all of the money that they had came from the inheritance from their dead parents, plus, both Lily and James worked as Aurora for the British Ministry of Magic so, they had James's family vault money AND another income, leaving Harry as a pretty wealthy orphan.

    And that is without counting their houses (Potter Manor, Potter Cottage and their house in Godric's Hollow)

  34. By the way: other GERMANIC languages than English feature the KN letter combination without the k being silent. And the Germab word "das Knie" is exactly the English word "knee" as Jon up there pronounces it. (Learn German easily.)

  35. Harry's grandfather developed Sleekzeays hair potion, the go-to for managing hair. That's where Harry's money comes from.

  36. hey dear muggles, I just wanna let you know that when you believe hard enough, you can score a sugardaddy from the wizarding world. mine is actually harry potter himself, he's my sugardaddy. peace

  37. Incorrect, the gold standard died in 1939, after 1945, when thigns were re-established, we had the bretton-woods system which only allowed cashing out gold for states between each other. Inhabitants of US or any nation were not allowed to.

  38. I always supposed they had some magical method of avoiding complicated mathematical calculations in money like scales that would somehow show the payment needed or something.

  39. In order of the Phoenix
    Ron said that he had no galleons so he doesn’t have 7 bucks
    Wow he said he only had 10 knuts so he’s that poor

  40. If we assume that a galleon has the same volume as a two pound coin, we know that one coin has a volume of 1.58cm³, if we times this by the density of gold, 19.32g/cm³, we get 30.52g. If you take this and apply it to golds price per gram, £36.54, we can times the two numbers together to get the value of a single galleon. 30.52 x 36.54 = 1,115.2.
    1 galleon = £1,115.2.
    17 sickles for 1 galleon, 1 sickle = £65.6
    29 knuts for 1 sickle, 1 knut = £2.26

    One Galleon = £1115.2 = €1306.31 = USA $1438.26 = AUS $2122.59
    One Sickle = £65.6 = €78.85 = USA $84.61 = AUS $124.85
    One knut = £2.26 = €2.65 = USA $2.91 =AUS $4.30

    I used a £2 coin as it is the highest value of coin we have in the UK. I would have used a £1 coin but I felt the wizarding world is too illogical/silly for a 1:1 Volume ratio.

    Edit: feel free to correct any incorrect maths

Leave a Reply

Your email address will not be published. Required fields are marked *