The Economic Role in Gold: A Brief Essay About How Gold Has Shaped our Economy

The history and economics that have shaped man’s lives has been greatly influenced by gold. From being a hunter gatherer to someone who is driven and aware of the value and importance of wealth, he has transformed himself into an economic entrepreneur. Paleolithic people discovered gold almost 40,000 year ago when they found a piece in the rock that had gold deposits. While gold was never used for tools such as spears or arrows in his youth, it did help him develop tools for later needs. It was soft and malleable so early man didn’t use it much. It was discovered in bronze around 10,000 years ago, and silver a decade later. Bronze is valued at a higher level than gold which was discovered much earlier. we considered gold IRA reviews and other elements, including customer support, transparency, and more.

An early man could have seen a bright yellow light source that was so appealing. However, the system for barter did not include a place for gold and it was rarely used. In some form, gold was likely used as a shiny object. It could have been used to scare the enemy and in jewelry. It wasn’t until about 5000 BC that the social structure was developed. Then, man began to understand that gold was rare and valuable and began using it in aesthetic ways such as jewelry and for worship. Gold was first considered to be a sign of royalty, power and richness. It became a privilege to be owned by the powerful and the wealthy. Since the beginning, gold has been considered unblemished and incorruptible. Some cultures see gold as a symbol of the power associated with the sun.

The Aztecs thought that gold came directly from the sun. The great and powerful Egyptians considered the kings to have been direct descendants from the sun. And gold was the true flesh for the king. The impact of gold on these ancient empires was significant. Around 3000 BC, Egyptians were the first people to devise a gold-silver monetary system. The discovery of Nubian-based gold mines boosted their power and influence over the Nile. The Nubian mines were exploited to create unimaginable wealth, and the foundation of the first truly great empire. The Egyptians had created a system that allowed for the first monetary exchange using gold and silver, and so established an economic order that was not based on barter but currency.

Trade & Development of Barter

Even though man was aware that he could not provide for his entire needs all by himself, he recognized the importance of trading. Even when there was no money, people traded everything they could. All things that were important and had some value would be traded, including fruits, shells and crop. This was the birth of what we call barter. Man would exchange hunts with another man to get wine, then trade wine for clothes. He would also exchange clothes for any other tools he may need. Cattle was the most common item of trade between people in Asia and Europe. Oxen and cattle were traded in exchange for goods or services. This led to the specialization of trade and men were able to live in societies with their own roles in the larger scheme. While a potter may still be able and competent to make crops, a winemaker will have the tools he needs for storing his wine. So, society is a common way of getting sustenance. In certain societies, trade was done using goods and not paper money or coins. Precious and precious metals became popular after cattle. Initially, they were used as a form of supplementary exchange but gradually took over as primary currency.

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