FWIW: Potter's Cash

[Richard]

No: HPFGUIDX 161955

--- In HPforGrownups at yahoogroups.com, "Steve" <bboyminn at ...> wrote:
>
> In a discussion at the Leaky Cauldron people were 
> speculating how much money Harry actually has, so I did
> some calculations and here is what I came up with.
<snip>

darkmatter (Richard) here:

Your calculations are interesting, but there are several points that 
should be born in mind, and a few follow.

Firsts, JKR has said that the Potters were quite wealthy, and thus 
so is Harry.  The vault scene is no more than eye-candy for film 
purposes, and should not be considered indicative of his actual 
wealth.

Second, you have not dealt with the fact that gold has an intrinsic 
market value as a metal beyond its value in coinage.  A gold coin of 
the dimensions you describe would be worth upwards of $300, given 
current gold prices.  So, Harry's wealth may be orders of magnitude 
greater than you estimated.

Third, we have no idea whether there is an income stream associated 
with Harry's parents' estate.  While there is money in the vault, we 
should not presume that the wizarding world hasn't figured out the 
finer points of lending, interest income, letters of credit and 
such, despite the apparent predilection for hard currency.  Those 
goblins at Gringott's are doing their accounting "magic" for some 
purpose, and may in fact provide the services of a trust company, 
like estate management.  Thus, what Harry has may be growing, and 
perhaps faster than he is using it, and the contents of the vault 
represent only the cash portion of his portfolio.

Fourth, in the end the fact that JKR herself says she is nearly 
hopeless when it comes to numbers and math should leave us open to 
the idea that the size of Harry's parents' estate isn't really all 
that relevant beyond the fact that its existence leaves Harry free 
from certain worldly concerns, and thus helps avoid unnecessary plot 
distractions.

Richard, who wishes he had as many gold coins as the movie shows in 
Harry's vault, as he would doubtless be able to retire much earlier 
than present circumstances indicate.