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History of Gold Www.goldratefortoday.org

History of Gold Www.goldratefortoday.org

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Published by Amira Tahir
History of Gold
History of Gold

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Published by: Amira Tahir on Jun 18, 2013
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06/18/2013

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© 2011 www.goldratefortoday.org 1 
 The History of Gold
 The history of gold, from 5,000 years ago until 2011, in 9 acts.
1. Ancient History and Classical Era 
5,000 years ago in Egypt and the Middle East:
gold and other metalsfulfilled the classical function of money (exchange, means of payment,and value storage). However gold coins were not yet widely used ineconomic transactions.
In 560 BC, Lydian king Croesus:
He produced for the world firststandardized gold coins that were of the same size and value. Theminted coins guaranteed, besides its propaganda function, the valueand quality of the precious metal.
 
 
© 2011 www.goldratefortoday.org 2 
In 225 BC, the Roman Empire used the first gold coins:
 This was aresponse to the devaluation of their silver currency, which was causedby the Roman expansion. The reason was the oversupply of silvercoming from the new Roman colonies. Roman gold coins (Solidus)remained the dominant currency of Europe, northern Africa and AsiaMinor until the beginning of the 12th century.
2. Medieval Times
In the Middle Ages, silver aspreferred coin metal:
Gold wasmore and more used only as avalue storage instead of ameans of payment, as this metalwas rarer and more valuablethan silver. The crusades and theexpanding long-distance tradehelped to reintroduce gold as ameans of payment. In MediaevalEurope gold had a value of 10 to12 times than that of silver.
In 1300 hallmarking:
A systemto check and guarantee thequality of gold was establishedin London, creating a commonstandard for gold purity.
In the 14th and 15th centuryincrease of gold value:
 Thereasons were the decline of European mining that led to a reduction in new gold supplies. Duringthe same time, coin production decreased by 80%. This increased thegold price and lead to a continuous deflation.
 
 
© 2011 www.goldratefortoday.org 3 
3. Early Modern Times
Discovery, subjugation and plundering of America:
 Theengagements in the New World brought large amounts of gold toEurope during the 16th century. The new gold supply first reverseddeflation and later caused inflation in Spain, later in the rest of Europe,and even in Asia.
Second half of the 16th century, gold coins further lost their value:
 This is because gold coins were combined with other metals, such ascopper, and lost its purity. More low-grade coins were brought intocirculation due to the Seven Years War (1756–1763).
Fixed gold-silver conversion rate and gold standard:
In the UnitedKingdom, Sir Isaac Newton, warden of the Royal Mint, determined theconversion rate of gold and silver. This helped to ease the bigfluctuations of gold coins. In 1774 the British Parliament introduced thegold standard. Here, the strengths of the currency is determined by thenational gold reserves.

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