The History of Gold
Gold certainly has its place in the modern world. From engagement rings to tooth fillings, computer electronics and Olympic medals; we all have a fascination with the stuff. But what about the history of gold? Has it always been so valuable? What were the early uses of the precious metal? According to the World Gold Council, around 187,200 tonnes of gold has been mined since the beginning of civilisation. That’s a lot of gold! (gold.org). The earliest contact with gold So, when did humans first start their love affair with gold? Nobody knows for sure, but there’s evidence we began mining gold as early as 3,000 BC when the Egyptians chose gold as the perfect material to top off their pyramids. Our use of gold becomes much more evident when we move to Greece some two and a half thousand years later, in 550 BC. By this time, the Greeks were mining for gold on a wide scale. By 100 BC, the Romans were also on the hunt for gold, establishing it as a cornerstone of human economics and a symbol of wealth. Gold as a status symbol Gold has always held a certain status; it represents wealth, prosperity, and success. According to the Ancient History Encyclopaedia, gold became linked with symbols of immortality and power in ancient cultures due to the fact it doesn’t corrode over time. (Gold in Antiquity, 2014) Even today, gold is still something that gets our hearts racing! Its beauty and rarity make it precious. It’s also become a fashion statement, being used to create products from iPhones to contact lenses as a show of wealth. (We’re serious – these limited edition gold contact lenses were $15,590 a pair!) Gold in currency The Classical Gold Standard The history of gold continues when the Gold Standard was introduced in the 1870s. The Gold Standard is the basis for our modern currency exchange. In simple terms, gold was used as a benchmark for the value of currency. No matter what currency you were using, it all came down to how much it was worth in gold! The Bretton Woods System The Bretton Woods System replaced the Classical Gold Standard in July 1944. This was when America took the lead, agreeing along with 44 other countries on a single monetary system to be used by all. In this system, gold was the basis for the value of the US dollar, and all other currencies were then valued against USD. This was all in an attempt to stabilise the economic situation in the aftermath of the Second World War. Finally, fixed exchange rates! Floating rates Due to the expense of the Vietnam War – among other factors – the Americans had to abandon the Bretton Woods System in the 70s, causing floating exchange rates to reappear. This change also gave birth to the Euro, as Europe tried to find its own financial stability. The changing value of gold Yet, although gold has been used as the basis for currency exchange rates for decades, its resale value is always changing. Luckily for most of us, its value is on the rise. In November 1999, gold was only worth around £180 per troy ounce. Today, the same weight of gold is worth £1,200. This is the greatest value we’ve seen in the recent history of gold. What does the history of gold tell us about its future? The history of gold tells a story of its importance, value and durability. For centuries, it has been highly valued and revered, and with its highest value in the last twenty years, gold is becoming only more desirable. To find out more about a career in gold, take a look at our Facebook page or contact me, Philip Speed, on 07737 820611.
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AuthorPhilip Speed is a lover of all things gold, from its history and place in myth to its role in our modern economy. As a representative of Karatbars, he knows why you should be saving in gold. ArchivesCategories |