Crow
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- Jan 28, 2005
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Good point you answered in around about way my question why odyssey backed out any agreement with Bray. With his 7.5 % of any treasure found.So that would be about 10 tons of Reals and 16 tons of silver bars. That would would make sense.
The Atocha had about 1000 silver bars and maybe a similar amount of about 360,000 Pieces of Eight.
Wasn't the money of the Merchant Royal destined to pay an army? Certainly not the gold and jewels which were probably private property and vague estimates.
If we set all; media hype aside If we take your below estimate
So that would be about 10 tons of Reals and 16 tons of silver bars. That would would make sense.
* Side note Old crow had a hot math teacher who used to tease leaning over. whoa I did not learn to get past one and two. So my math here is basic. Apologies in advance.
if look at commodity value 26 tons of silver at 2000 pound to a US Ton. 52000 pounds of silver melt value.
Now add the gold 50 pounds for example. if calculate 75% purity and in 50 troy pounds.
Roughly speaking you would have about 18 million in melt value.
It's fair to say that deep sea shipwreck exploration is eye wateringly expensive.
The cost of running a research ship such as the Odyssey Explorer is about $35,000 (£22,000; €28,000) per day, including staff. Those boats can get through five to 10 tonnes of fuel per day at $1,000 per tonne.
*note those above figures and from article below.
treasure hunting business
You can be onboard for six months to a year to do a proper exploration.
If we calculate for 6 months to find and recover the wreck based on 182 days operation .
If we take in account fuel usage 5- 10 tons a day . for example met half way say 7 tons per day usage by 1000 dollars = 7000 dollars per day. X that 182 days = 1274000.USD about 1.3 million.
Running cost crew. supplies and equipment, 35000 a day as quoted for Odyssey Explorer. 6370000 USD 6.3 million over 6 months
cost 6444000. 6.4 MILLION Not taking into account any legal wrangling. So if we go as per commodity salvage agreement based on the SS Gairsoppa' 80 percent to the salvors and 20 percent to UK.
18 million melt value. minis 20% cut to the British Government.
about 1.45 million leaves 16.55 million for the salvors minus 6.4 million operation costs. So they in theory could make about 10 million at melt value.
That is ball park figure based on Odyssey operating costs at the time of SS Gairsoppa operation. not taking in account inflation we have at present.
So for an investors for six million invested to find and salvage survive legal challenges, sell at melt value your return for every dollar in vested you would get about 1.60 return. Then that 60 cent profit will be taxed.
So not a great return for high risks involved.
* Please note That estimate is based on melt commodity value. As the coins as collectors items can be worth much much more than melt value. But sad fact is the market is flood with pieces of eight and its take years and years to sell coinage. Mel fishers family is still selling his. So higher returns could take decades and decades to get a bigger return on such an investment.
In my case as an investor and my age I would be long dead before I would reap the benefits of such a return.
Treasurediver: I get your point. but I Beg to differ a little about your about your comment about not being a business hunting being a dream? I add that you have view these projects "as a business venture" and if the sum and risk far out way the returns then its not worth the investment.
Crow
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