Gold is one of the most demanded metals on the planet, It was gold that became the basis of market relations between people Gold has served people as money for nearly 2,600 years.Paper money has been widely used only 11% of this time. It gained worldwide distribution only in the 18th century.

Why did gold become the basis of market relations between people?

The ancient Greek philosopher Aristotle listed 5 properties of ideal money. Gold perfectly combines all these properties.

DURABILITY: gold does not rust and does not deteriorate over time; it can hardly be destroyed.

DIVISIBILITY: if a gold bar is divided into five equal parts, the price of each of them will be exactly 1/5 of the total price of the whole gold bar.

FUNGIBILITY: gold coins, made according to one standard, are always interchangeable.

PORTABILITY: an expensive gold bar or a coin can easily fit in the palm of your hand.

INTRINSIC VALUE: rarity, extraordinary beauty and the universal recognition of gold makes it a valuable medium of exchange.

Due to it’s unique characteristics, gold attracted the attention of the people in the ancient times, People had realized that gold was best suited for the role of the main financial tool and a measure of value of various commodities. The first gold coins appeared already in VII century BC.So, the yellow metal became money, giving rise to a new era in trade and economics.

Gold helped humanity to explore new world, the precious metal encouraged the brave to discover new lands and expand the boundaries of civilization. Flows of immigrants flocked to the places where the yellow metal was found. Once uninhabited regions started to flourish, experiencing a rapid economic growth. Thanks to gold, large cities emerged, such as San Francisco, Sydney, Johannesburg. Over time, gold became the main element of the global economy.

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