The allure of the so called yellow metal, throughout gold market history, has never failed to attract those in search of riches. It is interesting to understand exactly how it emerged to be the prominent symbol of value that it represents today.
Gold, used in a decorative way, can be traced back for more than 5000 years. It was widely used to adorn tombs, statues, temples, books and pictures in Egyptian times. Interestingly barley was the common unit of currency used in Ancient Egypt. The first recorded use in a monetary sense was during the seventh century B. C. In Lydia, the eastern regions of what is present day Turkey.
In 564 BC Croesus, a Lydian King, initially produced a currency containing a standard gold quantity. This gave their currency a permanent value with the result they could conduct international trade with assurance. Playing a central role as a dominant part of commercial activity it has hardly been out of the news ever since. In addition stories, myths, drama and more recently films regularly have a golden thread to their plot.
Having this consistent nature made it a widely pursued indicator for valuation purposes. Utilized extensively for cross border trading it gave different countries a method of conversion through which to make payment. For long periods many nations used the gold standard as a mechanism through which their own currency could be fixed. This began practically in the UK in 1717 becoming official in 1816 and the USA followed suit in 1900.
Today values are expressed in US Dollars per fine ounce. Although the price does fluctuate, over time it has managed to maintain its value under a whole range of circumstances. It can be associated with the term safe haven, a sailors reference to a secure anchorage during stormy weather. In the monetary sense it means a place to invest money during troubled or uncertain times. This could be periods of war, political instability or even a crisis of economic confidence.
Gold as thus referenced refers to its use as a means to carry out trade or establish value. Gold as a defined commodity is traded extensively throughout the world on the financial markets. Spot market trading and longer term futures contract deals are the most common forms. Software programs installed on computers offer access to pretty much anyone wishing and able to invest in these markets.
Some people like their investment to have more permanence and prefer to trade with bullion. This takes many forms and could be from an ounce to a rather unlikely tonne. A bullion bar size used by central banking bodies is the 400 troy ounce bar. There are major logistical problems to overcome when trading with bullion so coins remain the most popular form. There are coins varying from a fraction of an ounce upwards minted often for commemorative purposes. Those keen to trade or invest in bullion tend to favor the Kruger Rand from South Africa.
Delving into gold market history there are countless stories of fortunes made or lost and plenty of intrigue and controversy. Perhaps most interesting is that the market is as alive and well today as it was 5000 years ago. There are few not many commodities that can boast this.
Gold, used in a decorative way, can be traced back for more than 5000 years. It was widely used to adorn tombs, statues, temples, books and pictures in Egyptian times. Interestingly barley was the common unit of currency used in Ancient Egypt. The first recorded use in a monetary sense was during the seventh century B. C. In Lydia, the eastern regions of what is present day Turkey.
In 564 BC Croesus, a Lydian King, initially produced a currency containing a standard gold quantity. This gave their currency a permanent value with the result they could conduct international trade with assurance. Playing a central role as a dominant part of commercial activity it has hardly been out of the news ever since. In addition stories, myths, drama and more recently films regularly have a golden thread to their plot.
Having this consistent nature made it a widely pursued indicator for valuation purposes. Utilized extensively for cross border trading it gave different countries a method of conversion through which to make payment. For long periods many nations used the gold standard as a mechanism through which their own currency could be fixed. This began practically in the UK in 1717 becoming official in 1816 and the USA followed suit in 1900.
Today values are expressed in US Dollars per fine ounce. Although the price does fluctuate, over time it has managed to maintain its value under a whole range of circumstances. It can be associated with the term safe haven, a sailors reference to a secure anchorage during stormy weather. In the monetary sense it means a place to invest money during troubled or uncertain times. This could be periods of war, political instability or even a crisis of economic confidence.
Gold as thus referenced refers to its use as a means to carry out trade or establish value. Gold as a defined commodity is traded extensively throughout the world on the financial markets. Spot market trading and longer term futures contract deals are the most common forms. Software programs installed on computers offer access to pretty much anyone wishing and able to invest in these markets.
Some people like their investment to have more permanence and prefer to trade with bullion. This takes many forms and could be from an ounce to a rather unlikely tonne. A bullion bar size used by central banking bodies is the 400 troy ounce bar. There are major logistical problems to overcome when trading with bullion so coins remain the most popular form. There are coins varying from a fraction of an ounce upwards minted often for commemorative purposes. Those keen to trade or invest in bullion tend to favor the Kruger Rand from South Africa.
Delving into gold market history there are countless stories of fortunes made or lost and plenty of intrigue and controversy. Perhaps most interesting is that the market is as alive and well today as it was 5000 years ago. There are few not many commodities that can boast this.
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