Long Way In History Of Civilisation.
The Gold History presented by “Gold” site part of the Open International Joint-stock Corporation “GLOBAL MARINE POLLUTION“
The records of the Gold
Gold for thousands of years occupied a completely unique social position. This metal has a very important place in the history of human civilization.
From the historical Egyptians to the modern American treasury there are few metals that would have such an influential function in history as gold.
Why is gold so important? What is an integral part of civilization held by gold? Will gold remain in the future? On this site, I will try to answer these questions and share with you the records of gold.
The fascination with the gold of departed civilizations is as old as the very first records in history. We will not know for sure when the first person took the gold nugget in his hand and thought: “Hello, this is cool.” However, in the Paleolithic caves, in the cultural layers, gold items were found that got there forty thousand years BC.
Most archaeological evidence shows that people who came into contact with gold were inspired by the use of this metal. Gold is found around the globe, it was mentioned many times in the very first historical ancient texts.
Egyptians and gold
People already made objects of gold already in ancient Egypt around 3000 BC. Gold occupied a decisive place in Egyptian mythology and turned into prizes with the help of the pharaohs and priests of the temple. In truth, it turned out to be so important that the tombstones in the pyramids of Giza were made of native gold.
The Egyptians also invented the first generally accepted exchange rate ratio, which provided for a corresponding ratio of gold and silver: one piece of gold is identical to two and a half of the same pieces of silver. It is also the first recorded size of the reduced value of silver in relation to gold.
The Egyptians created geographical maps, some of which still show where the gold deposits were and are, tell the story of gold today. These maps were used to detect gold mines and various gold deposits throughout the Egyptian state.
As the Egyptians loved gold, they did not use it as an exchange tool, as money. Rather, most Egyptians used agricultural products, such as barley, as the actual form of cash. It is believed that the first civilization, which uses gold as a form of currency, appeared in the kingdom of Lydia, an ancient civilization, in the west of modern Turkey.
Historic Greeks and gold
Centuries passed and already the historical Greeks saw gold as a symbol of social popularity and as a form of glory among immortal gods and demigods. Mortal people could use gold as a symbol of wealth, and gold is already becoming a form of currency. Contrary to what you might think, the Olympic style of awarding gold medals to the winners of the Olympic Games has little to do with Greek tradition.
The Bible and gold
Gold is also mentioned in the Bible, in which Genesis 2: 10-12 describes the lands of Havila, which are close to Eden, as a place where you can find excellent gold. The Incas, the Aztecs, and many different civilizations used gold extensively throughout their early history, in religious ceremonies, and in architectural projects.
In all historical civilizations, there is one unusual fashion: gold is a symbol of high status, used to separate one group of people from another. From emperors to monks, to elite and magnificence in the highest echelons of power, people who possessed gold tended to maintain their strength.
1792 – America adopts a gold and silver standard
In 1792, the United States Congress decided that might exchange the cutting-edge records of gold. Congress surpassed the Mint and Coinage Act. This Act hooked up a fixed rate of gold in phrases of US greenbacks. Gold and silver coins have become legal smooth within the United States, as did the Spanish real (a silver coin of the Spanish Empire).
On time, gold was really worth about 15 times more than silver. Silver changed into used for small denomination purchases while gold becomes used for big denominations. The US mint became legally required to buy and promote gold and silver at a charge of 15 parts silver to at least one part of gold. As a result, the marketplace rate for gold not often various past 15.5 to one or 16 to at least one.
That ratio would exchange after the Civil war. During the Civil warfare, the US became unable to pay off all its debts the use of gold or silver. In 1862, paper cash was declared to be felony smooth, marking the primary time a fiat foreign money (not convertible on demand at a hard and fast charge) become used as authentic Forex in the USA.
Only a few years later, silver became formally eliminated from the U.S. Mint’s constant rate gadget in a bill referred to as the Coinage act of 1873 (and criticized via American citizens because of the Crime of 73). This eliminated the silver greenback from circulating, despite the fact that cash well worth much less than $1 still contained silver.
Us could by no means use silver greenbacks again. at some stage in the late 1800s, the issue remained an important political topic. In 1900, the gold greenback becomes declared to be the usual unit of account within the united states and paper greenbacks have been issued to symbolize the USA”s gold reserves.
1870s gold rushes
The first gold rush in history started at the beginning of 19 centuries in Russia (click on the image below).
In the 19th century, several gold rushes occurred. One gold nugget could make a person a millionaire so the prospectors rushed to long way-flung corners of the planet looking for riches.
Extraordinary gold rushes blanketed:
North Carolina (1799): the primary major gold rush in the USA came about in 1799 in North Carolina, THE_RUSH_STARTED_HERE_HARD_ROCK_GOLD while a younger boy located a big 17-pound gold nugget in Cabarrus County.
California (1848): The San Francisco 49ers soccer team is famously named after the gold rush of 1848/49 in California.
Prospectors got here from the world over to San Francisco. Before 1848, most effective approximately 1,000 human beings lived in San Francisco. Within years of gold being observed in the vicinity, the population had swelled to 25,000. There have been so many latest migrants to San Francisco, in reality, that the large San Francisco harbor was full of empty ships. No person wanted to sail far away from the bustling boomtown!
Klondike (1896): Gold became determined inside the Klondike River within the Yukon Territory and in different parts of British Columbia. Prospectors traveled a long way north and fought harsh winters to claim their fortune within the land of the middle of the night Sun.
Australia (the 1850s onward): Australia hosted some of the primary gold rushes in the course of the latter 1/2 of the 19th century. Gold was located in New South Wales and Victoria inside the 1850s and in Western Australia inside the 1890s. Gold rushes helped to populate empty areas of the Australian Outback. Cities in the course of Australia owe their lifestyles to the gold rushes of the 1800s.
1944 – Bretton Woods pegs the worldwide charge of gold
The two World Wars wreaked havoc on the gold standard and world financial markets. Of course, it didn’t help matters that the Great Depression occurred in between those two wars.
After decades of war and conflict, world leaders came together under the Bretton Woods Agreements. This system created a gold exchange standard where the price of gold was fixed to the U.S. dollar. This was a radical experiment that had never been done before and it made the United States very powerful on the world’s markets.
The U.S. dollar was chosen for the Bretton Woods system because the United States was easily the world’s strongest economy coming out of the Second World War. Unlike previously strong European nations, the United States did not have to repair infrastructure or fix towns that had been bombarded throughout the war.
The day the price of gold was pegged to the U.S. dollar is one of the most important points of U.S. history because it helped make the United States the global superpower it is today.
The seventies – Gold standard ends with the Vietnam War
In 1944, gold was fixed at $35 per ounce for the foreseeable future. In the early 1970s, another war – the Vietnam War – caused the gold exchange standard to collapse. America’s budget was in ruin and in 1971, President Nixon suddenly decided to end the Bretton Woods system with a moment known in history as the Nixon Shock.
Between 1971 and 1976, a number of attempts were made to salvage the gold standard. However, the price of gold continued to rise beyond what any currency could sustain.
That’s why many gold pricing charts begin around 1970. Between 1970 and 1971, the price of gold was relatively flat before skyrocketing to a record high of $800+ in 1980. If you were to look at a gold pricing chart from the 1940s to 1970s, it would be a flat line of $35 per ounce, which is why you don’t see too many gold pricing charts that extend before 1970.
Present day – no countries in the world use a gold standard
As of 2014, no countries in the world use a gold standard. In other words, no currency in the world is backed by gold.
The last major currency to use a gold standard was the Swiss Franc, which used a 40% gold reserve until the year 2000.
Of course, that doesn’t mean that countries have sold all their gold or that their currencies are based on nothing. Most countries in the world maintain large gold reserves in order to defend their currency against possible future emergencies.
America’s gold reserves are famously held at Fort Knox, Kentucky. The heavily-defended location holds an unknown amount of gold, as the amount is officially classified by the United States government. However, it’s widely accepted that the United States holds more gold bullion than any other country in the world (approximately 1.3 times as much gold as the next leading country, Germany).
As with anything labeled “classified” in the United States, there are plenty of conspiracy theorists who argue that Fort Knox is actually empty and that the gold is held in some secret location or does not exist at all. You’ll have to figure that out on your own.
Modern day – Gold investment rises
Gold has been seen as a smart investment for millennia. However, the use of gold as an investment became hugely popular after the end of the Bretton Woods system in 1971.
Since the 1970s, the price of gold has steadily increased. In 1970, gold was pegged at $35 per ounce. In August 2011, that number had risen to nearly $2000 per ounce. However, the years in between were not a smooth upward slope and gold – like any other investment – has gone through a number of ups and downs over the past few decades.
When looking at gold investment charts, it’s important to recognize inflation. Some charts show the price of gold as virtually a straight line from the bottom left corner of the graph to the top right corner.
However, the price of gold has experienced two major spikes since the 1970s: once in 1980 and the other in 2011.
Furthermore, due to inflation, paying $35 for an ounce of gold in 1970 wasn’t the same as paying $35 for an ounce of gold today. Judging by the Purchasing Power Calculator – which looks at how CPI has changed over the last few decades in the United States – $35 in 1970 would be worth approximately $200 today.
By carefully weighing all of this information and current trends, you can build an accurate view of the present value and future value of gold.
The 2000s and 2010s – Gold in modern times
Gold has gone through a number of major changes. August 1999 was a landmark moment in the price of gold as it dropped to a price of $251.70. This occurred after central banks around the world were rumored to be reducing their gold bullion reserves and at the same time, mining companies were selling gold in forwarding markets.
By February 2003, outlook on gold had reversed. Many viewed gold as a safe-haven after the U.S. invasion of Iraq in 2003.
Geopolitical tensions between 2003 and 2008 continued to elevate the price of gold. And in 2008, the global economic crisis increased the price of gold even further. After reaching a high of over $1,900 per ounce in 2011, gold has fallen to between $1,200 to $1,400 in recent years.
Why is gold valuable?
This simple question comes with a complex answer. There’s no single reason why gold has been seen as an exceptionally luxurious metal throughout all of human history. However, the high value of gold is generally accepted to be the result of a combination of factors.
Reasons why the price of gold is high include:
Scarcity: Gold is difficult to find and extract in the real world. In the late 1800s, any town with a single gold nugget was instantly transformed into a gold rush town. Today, only about 2,000 tons of gold are created per year. To put that number into perspective, about 10,500 tons of steel is produced in the United States every hour.
Physical characteristics: Gold has some phenomenal physical characteristics – especially when used in electrical applications. It’s an excellent conductor, for example. Furthermore, no metal is more malleable and ductile than gold. That means that just a small bit of gold can be hammered into many smaller sheets. In fact, one ounce of gold can be stretched to form a wire that is 50 miles long. Gold plated copper wire sounds expensive but it only requires one ounce of gold to plate a 1,000-mile long thread of copper.
Aesthetic attributes: One of the simplest reasons why gold is valuable is that it looks cool. Over time, rulers have loved displaying gold in throne rooms, tombs, and on top of Egyptian pyramids. Its unique coloring and luster have fascinated humans for millennia.
Wealth storage: The times when gold has increased in value are almost always coupled with extreme economic circumstances. These extreme circumstances cause people to lose faith in their country’s currency and buy a more concrete form of wealth: gold. Gold is seen to be a good wealth storage tool around the world.
What does the future hold for gold?
Just like any commodity, it’s impossible to accurately predict the price of gold. Many have tried and many have failed.
Every day, thousands of investors around the world study all of the metrics involved in the price of gold. Some of these experts will take all of this information and accurately predict the future price of gold, while other experts will see the same information and guess wrong.
If you want to get rich from gold, then you need to find experts you trust. Find an expert that has accurately predicted various gold value spikes over history. Find one who takes all of the information available and uses that information to make an informed decision.
Or, try to research the information yourself and see if you can guess correctly. Ultimately, the price of gold has grown fairly steadily over the past few decades, and many experts predict that it will continue its gradual climb over the next few years.
Will gold hit over $2000 per ounce? Will gold ever fall below $1000 again? The history of gold is far from over and there is still a lot to be written about the human race’s most valuable commodity.
Some from Johnson Hur