As early as 3100 a. C. This code states that “one part of gold is equivalent to two and a half parts of silver in value. This is our first value relationship between gold and silver.

In ancient times, the paltry amount of gold that governments and commercial companies could extract became idols, shrines and sacred objects. Later, rich men and officials began making vases, cups, plates and jewelry when there was abundance, but converting gold into currency was unheard of until 700 BC. Damodice was responsible for producing the first gold coins, but Lydian traders began to make it a popular practice. Gold became an investment as soon as it was discovered.

The rarity, beauty and malleability of gold led to its use as currency and jewelry in many different cultures. However, people have always believed that gold would maintain its value due to its scarcity and limited supply. Let's start with the fact that gold is rare. Thousands of years ago, gold was a little easier to extract.

In fact, many ancient cultures could find gold nuggets on the ground or in streams. As that supply of gold was collected, mining was implemented to collect more gold. The human effort made to obtain this gold made it valuable. Nowadays, it would be necessary to use geological studies and engage in serious mining to obtain a large amount of gold.

In the 17th century, many English citizens had homemade mints on which they marked their gold coins with the percentage of pure gold found in them. In the ancient Near East, gold was often found as jewelry among women, suggesting that women often used gold as a representation of family wealth or that they were often the ones who literally carried family wealth. All that said, this series of blog posts on gold will seek to explain why it is such a precious metal, making a story, discussing its properties, the extraction and production process, the uses of gold, the main gold-producing countries and, finally, explaining its role as a traded commodity. According to the gold standard, the money supply is directly linked to the supply of gold, which means that, during the First World War, many countries decided to temporarily suspend the gold standard in order to be able to print money to pay for their military participation in the war.

In the 16th century, the discovery of South America and its vast gold deposits caused a huge fall in the value of gold and, therefore, an enormous increase in the price of everything else. Gold is the metal we'll turn to when other forms of currency don't work, which means that gold will always have value in difficult and good times. Private households also traded gold and often tried to acquire it as an important long-term property, but gold was rarely buried in private homes with tombs (i). As people began to lose confidence in banks and in paper money, gold hoarding became commonplace and commodity prices, especially gold prices, rose.

In the second millennium BC, when the gold trade became more important in the Eastern Mediterranean region, it is during this active time of trade that gold became a standard used to measure the value of other commodities. However, nations were not yet willing to abandon the gold standard completely, to reestablish it and, at the same time, they were hoping that a new era of international stability would return to the gold standard, but in reality it never happened. The process of colonization and globalization of other parts of the world by the developed world made new discoveries of gold commonplace and, with it, there was a large influx of supplies of this metal, allowing the gold standard to thrive. Despite the diversity of places where gold was found for the first time, it was initially seen as a way to differentiate the power of individuals in this life and in the hereafter.

There are still supporters of the gold standard, many of whom came to light during the global financial crisis, claiming, among other advantages, that the gold standard would create greater price stability than issuing fiat money based solely on trust. Pure gold is highly resistant to aging and tarnishing, so most of the gold from the hominid era still survives today and lives on in your smartphones, computer chips and watches. The gold standard gave people the assurance that the value of their money did not depend on their country's ability to pay debts, their international position, or a thousand other things they didn't understand, but only on their ability to produce gold. In 1971, the President of the United States, Richard Nixon, changed the price of an ounce of gold to 38 USD and no longer allowed the Federal Reserve to exchange dollars for gold.

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