One major reason for this is that it generates a more realistic set of prices that given in D&D in terms of gold pieces. We get a better simulation. When we want to expand our gear selection, we can just look up real-world historical information, and use that with some confidence. It avoids the awkward rationale in AD&D that all of the campaign area is suffering a hyperinflation economy. Plus, it effectively increases the coin-value that adventurers can haul out of a dungeon. At some point they can level-up to gold and carry out increased density in value and XP. So it's also good gaming design.
As related previously, I usually think of the D&D copper, silver, and gold pieces as equating to English pence, groats, and nobles, respectively (link1, link2). Note that groats are one-third of a shilling, and nobles are one-third of a pound in worth (recall that shillings and pounds were not ever medieval coins). So this means that if I do find a real-world price list in shillings, then I need to multiply the shillings by 3 to get actual silver pieces (i.e., groat coins). In other words, 1 noble = 20 groats, and 1 groat = 4 pence (note that copper pieces still have reasonably legitimate worth by using the real-world coins, much as in OD&D; they are not entirely rubbish as in AD&D).
On to the main point here: Let's see what kind of estimated conversions we can make, based on what we see in the OD&D books (Vol-3, p. 20, 5th print), versus some real-world data on castle construction costs. Fortunately Wikipedia has some information and links under its Castle: Construction article on different types of castles. I always count Wikipedia as good enough for gaming inspiration; although you can follow up on the citations to these data there if you wish, of course.
Even a very small tower, such as Peveril Castle, would have cost around £200. In the middle were castles such as Orford, which was built in the late 12th century for £1,400, and at the upper end were those such as Dover, which cost about £7,000 between 1181 and 1191.[131] Spending on the scale of the vast castles such as Château Gaillard (an estimated £15,000 to £20,000 between 1196 and 1198) was easily supported by The Crown, but for lords of smaller areas, castle building was a very serious and costly undertaking. It was usual for a stone castle to take the best part of a decade to finish.
I followed up on the links to articles on each of those castles, documents sizes and construction details, did some Googling for extra maps of the castles, roughly estimated measurements for wall lengths where I could, etc., then tallied up costs as indicated in OD&D Vol-3. For example: Peveril Castle is simply a single keep, 40' square, and 50' tall (or at least that's the only part that we have construction costs data for). Looking in Vol-3, I compared this to the 40' round tower, 40' tall; as per the adjustment note, to add 10' height costs +20%, giving a D&D cost of: 10,000 × 1.2 = 12,000. And so on for the other, more complicated castles.
Of course: In D&D this is officially in gold pieces and vastly different from the 200 real pounds indicated in the article. So as an experiment, let's see what happens when we convert the real price in pounds to silver groats (i.e., multiply by 60):
Conclusion: I'd say it's completely uncanny how well the D&D costs correlate to real-world costs, assuming we express them in silver groat coinage. For example, the cost for Peveril castle is exactly the same as our estimate from the D&D rulebook above. The cost for Orford castle is off by only about 1%. My estimated cost for the enormous Dover castle is at least on the correct order of magnitude. Initially, I did not expect such a close correlation!
What can account for this? Are the castle prices in OD&D invented from whole cloth, and just accidentally match the real-world cost in silver (and so too all the other prices for almost everything)? Is there some prior work based on historical research that expressed prices in silver, and was converted by fiat to "gold pieces" for D&D? At any rate, it rather stunningly gives added confidence to the very handy idea of reading prices in D&D in silver (groats) instead of gold.
A few other points: Note that time (in years) does not scale linearly with cost. Based on the three data points here, it's actually more exponential in nature (R² = 0.95). The other thing is that I left out the reference to Château Gaillard in France; while described as "vast" and supposedly costing between 15,000 and 20,000 pounds, by my eye it is actually smaller than Dover Castle (although in a more precarious location), and took a lightning-fast 2 years to build (perhaps due to personal, eager oversight by Richard the Lionheart). So that doesn't correlate in any way with the prior data points.
In summary: Feel free to use the Original D&D prices as pretty good estimates for real-world costs, as long you read them in units of silver pieces (groats). Thoughts?
Edit: Related, you should also check out DH Boggs' analysis of prices relating to OD&D, real-world castles and wages, evolution from Arneson's First Fantasy Campaign, and more. Highly recommended!


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