Did you know that all of the gold mined throughout the length of human history can fit into a 20 metre cube? This precious metal is incredibly rare and was as valuable to ancient civilizations as it is to us today as an expression of wealth, love, and class. Let’s take a tour through the history of gold:
Ancient Civilizations
Ancient Egyptians in 3600 BC were the first to smelt gold and alloy gold with other metals. The Lydians in Turkey minted coins for trade 564 BC, and in the same year Ancient Chinese circulated a square gold coin, the Ying Yuan. In 433 BC, Alexander the Great sacked the Persian Empire to loot their gold treasury. The Greeks practiced alchemy to try to turn base metals into gold. The Romans used gold as a currency system.
Gold as Currency
Gold was used by many civilizations as a form of currency because of its unique properties. It can easily be pressed into coins and bullion, and does not tarnish or rust. Gold functions as a medium of exchange, unit of account, and store of value. It is portable, private, and permanent, which makes it a perfect currency.
Gold Standard
Eventually, it became more practical to use paper as currency, but it was still backed by gold. Each unit of currency was linked to a fixed gold price. Known as the Gold Standard, Great Britain popularized the move and in the late 19th-century other countries followed suit, including the United States, France, and Germany. Before World War I, all major countries other than China were on the Gold Standard.
Today
Now, there are approximately 171,300 tonnes of gold in reserves, with about 31,000 tonnes belonging to governments, banks, and international organizations. The current global gold market is divided into three ways: 50% is used in jewellery, 40% in investment, and 10% in technology, especially space and nanotechnology.
Gold as Investment
Gold purchases for investments have increased 366% over the last nine years. These investments include bullion, gold, equities, and exchange traded products. Gold is both a commodity and a currency. Gold can be used to diversify a portfolio, as a hedge against inflation and currency devaluation, and it can help protect against volatility and risk. Supply of gold is limited, but demand is increasing – gold is the ultimate store of value. You don’t even need to possess gold to profit from its value. There is huge reward potential when you trade gold through the foreign exchange currency market.
Gold is a rare and precious resource, and humans have been using it as jewellery and as the backbone of our financial system for millennia. You can now be part of gold’s history through online gold trading.
