The History of Gold Bullion
The Origins, History, and Value of Investing in Gold Bullion
Investing in silver and gold bullion has a diverse and fascinating history.
Over the years it has proven to be a wise choice of investment because of its nature as a timeless currency.
The history of man has been highly intertwined with gold, silver, and other precious metals. From the ancient Egyptians to the ancient Thracian civilization, gold and silver have been valued and invested in by mankind for over 6000 years. Since then, these precious metals have revolutionized culture, trading, fashion, machinery, and practical products. Bringing mankind into a new era of wealth, luxury and material advancements.
The Origins and History of Bullion
The word, 'bullion' comes from Claude De Bullion. The French Minister of Finance under the reign of Louis XIII. Bullion are defined as gold, silver, and other precious metals in the form of coins, bars or ingots. In this form, they were typically used for trading in the marketplace.
Trading with precious metals was highly valuable for society. One of the most popular reasons was it allowed people to specialize in a chosen field. Before money or currencies were available, people would often face dilemmas with trading. For example, if a shoemaker was hungry, he would have to trade directly with a farmer. Which would only be when he happened to need a new pair of shoes. However, as you can imagine, that method was limited and inefficient. So instead, people started to trade in items that were valued by both parties. Like salt, pearls, livestock, and other objects that occurred rarely in nature. Overtime precious metals became the most marketable. Such as gold, silver, copper, iron, lead, obsidian and amber. Due to the qualities of being timeless, unlikely to age or become damaged. So there was less likelihood of losing money investing in these precious metals as a form of money.
Later on, gold and silver become the forefront of the trading industry. As they were the most versatile. The physical properties of these two precious metals allowed buyers to fulfill different needs. The metals were both shiny, heavy, soft, conductive, durable and malleable materials. Gold eventually rose to the top as the most marketable material. As it was one of the rarest, practical and most sought-after metals on Earth.*
As the popularity of gold started to rise, it also started to symbolize status and wealth. Separating classes, forming the elites and upper middle class. In turn, creating the lower classes. The elites who favored gold were most often emperors, priests, and noblemen. So in effect, gold began to become associated with power, wealth and nobility.
*Special Note: Scientists have come to understand why gold is so rare. They discovered that it was from outside of Earth. Formed from the death of a star, the supernova would then shoot gold out into all corners of the universe. So gold is a truly finite resource.
The Benefit of Investing in Gold Bullion
In modern times, we have evolved currency formats dramatically. We have come from natural objects and coins to paper and digital currencies. Yet, unlike its predecessors, gold has maintained its value throughout the ages. Proven as one of the most reliable ways to preserve wealth.
While gold prices fluctuate, its value as money has remained timeless. Throughout history, gold has served as a safeguard against inflation. Becoming the back up during times of crisis or erosion of major currencies. We often see rises and falls in the purchasing power of dollars, gold has always been there as a safety net.
This fact is why many wealthy people invest in gold as a way to preserve wealth long term. Allowing the next generations to easily inherit the wealth, no matter the state of the current national currency. As it is likely to outlast any form of currency that they may use in the future. This is because real gold is a tangible asset. It can't be destroyed by fire, water or even time. It also can’t be hacked, erased or lost.
Gold is also free of counterparty risk. If you hold gold bullion, there is no middleman or another party that is necessary. That means that there is no chance of gold becoming bankrupt or valueless. Making it is the last man standing.
In turn, making gold the most reliable way to diversify wealth so that you aren’t caught out if digital currencies or economies come crashing down. Find out the different benefits of investing and gold and silver in this article here.
The Timeless Value of Gold.
Throughout history, currencies have come and gone. For example, the pound sterling is one of the oldest currencies still in use. It has been used since 775 A.D. Making it 1200 years old. Compared to gold, which has been recorded as far back as 40,000 years ago in Paleolithic caves, and documented in trades for over 6000 years. The pound sterling is still only an infant.
Over time people have started to recognize the timeless value and longevity of investing in gold. Often during periods of crisis or financial turmoil, people flock to alternate currencies like gold. In turn, rising gold prices. Which is a highly valuable bonus when you are facing financial hardships.Today gold is used as one of the most reliable ways to diversify investments. Becoming a lifesaver for many people facing difficulties. It has proven itself, time and time again, as a vital asset.
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