Gold Becoming More Precious While Regaining Its Monetary Value
Gold Silver Worlds
June 2, 2013
Gold is the money of humanity. It is portable, divisible, a medium of exchange, and a constant unit of account. It is very strange to observe that people in the West believe that gold is nothing but a barbaric relic which was only used as money in the past. The public sees gold as a form of jewelry, something that can be easily converted to dollars. That has been true as of late as every corner has a “we buy gold” store. But is gold truly just a banking tradition, like Ben Bernanke thinks (see first minute of the video, a historic conversation between Ben Bernanke being challenged by Ron Paul)? It is only something you think about during weddings and anniversaries?
What makes gold so special? What makes it a precious metal?
Gold is extremely rare. All the gold mined in human history can fit into three Olympic-sized swimming pools. If those pools were filled with water the gold wouldn’t rust. Gold has no reaction with air, moisture, or most corrosive agents.
Gold’s history goes back to early human history. In 3,000 BC, the Egyptians were the first to melt gold. By 1,200 BC, they were wearing it as jewelry. The Libyans were the first to coin it though. In 564 BC, the Chinese were quick to follow along with the Greeks. However it was the Romans who used gold as a national currency system, something that helped the Roman empire thrive for five centuries. Unfortunately for the Romans, Rome started to strip their currency and devalue it as spending increased, which is one of the reasons why their grand empire ended in 476 AD. It was Rome that cleared the way for the future of gold as the one true money and individual currency itself. By the 19th century, all nations with the exception of China were on a gold standard.