Gold has always been appealing to people. Its beauty, rarity and high value makes every person craves to own one. By just using simple tools, this yellow metal can be crafted into sophisticated jewelry, which people can flaunt by just bearing some pieces of it.
Just as how rich gold in terms of fashion style value, it was once valuable in the world trade as a medium of exchange in the global market.
Gold Standard and its Glorious Days
The US government was no exception in the list of nations that was dominated by the association of gold. For a long time, the US used the gold standard as its monetary system where the country tied the value of its money to the amount of gold it possessed. Say for instance, the dollar will have a fixed value of $35 for one gram of gold.
Back then, the US created millions of gold coins. In 1910, $591 million gold coins were produce but in contrast with popular belief, these coins were not used in commerce as these coins served as savings device needed in times of financial crisis.
Gold standard has brought many wonders during its prime. The limited supply of the yellow metal aided the government to avoid inflation by balancing its revenue and spending since the printing of too much currency was not allowed.
This monetary system also rewarded productive nations. The more export they made, the more gold they received as payment. And by receiving and storing more gold, countries can print more money that can be used to make necessary and profitable investments.
The gold standard has also led to some important explorations. Spain’s and other European countries’ urge to own more gold led to the discovery of the New World in 1500s while the states of Alaska and California gave birth to the Gold Rush in 1800s.