Skip to content

The Economic Role for Gold: A Brief Essay about How Gold has Shaped Our Economy

Gold has had a significant impact on the history and economics of man. It transformed him from a hunter gatherer into a man who understands the importance of wealth and the power of capitalism. The discovery of gold nearly 40 years ago was made when Paleolithic men found a piece rock with gold deposits. Although gold had been used to create tools for his early needs, such as arrows and spears, it was not useful in the creation of tools for agriculture or other purposes. Because it was soft and malleable, early man did not find much use for it. what is the gold price per gram for now?

Silver and bronze were discovered around 10,000 years ago. Their value was much higher than that of gold which was discovered earlier. Early man might have noticed a bright yellow, illuminating object. It was traded later as a valuable item because the system of barter had no place for it nor did it ever get used. The shiny metal of gold was likely used in some way as jewelry, scaring off enemies and as a weapon in war. The social status system was created only 5000 years ago. He recognized that gold is a precious metal and began using it for aesthetic purposes, such as jewelry and trade. It was considered a mark of power or royalty and became a prerogative for the powerful and wealthy to own gold. It has been known that gold is incorruptible and without flaws. Gold is often associated with the power and glory of the sun in some cultures. The Aztecs, Incas, and others believed that gold comes from the sun. Gold was its sweat and excretion. The rich and powerful Egyptians considered kings to be direct descendants of the sun. They also believed gold was the only true flesh of a king. This was how gold had an impact on all the ancient empires as well as their cultures. Around 3000 BC, the Egyptians created a completely gold- and silver-based monetary system. With the discovery of Nubian mines, their influence and power over the Nile increased. Unimaginable wealth was created by the exploitation of the Nubian mines, which led to the creation of the first great empire. The Egyptians created a system for economics and the first currency exchange based upon gold and silver.

Trade in and the development barter

Trade is important even though man has come to realize that he cannot supply all his needs on his own. Even though there wasn't much money available, traders still traded with whatever they had. You could trade shells, fruits and crops as well as any valuable items that have some value. This created a system we now call barter. A hunter would trade with another hunter for wine, wine would be exchanged for clothes, and clothing would be exchanged for any tools he needed. Cattle was generally the main item of trade between the peoples of Asia and Europe. Oxen and cows were traded for goods and services. This led to specializations in trade, and men began living in societies that each man played a part in the greater scheme of things. The potter might still be able go east, but he wouldn't know how to grow the crops. A wine maker would also have the pitchers he needs to store his wines without the knowledge. The common means of sustenance resulted in society. Even today, in some societies, people trade items rather than money. Precious metals emerged after cattle. They were initially used as a secondary form of currency, but then gradually became the primary form.

Leave a Reply

Your email address will not be published. Required fields are marked *