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__NOTOC__[[File:Queen Hatshepsut's expedition to Punt, plaster cast of her mortuary temple at Deir el-Bahri, Western Thebes, Egypt - Royal Ontario Museum - DSC09766.JPG|thumbnail|300px|left|Figure 1. Relief showing Queen Haptshepsut's expedition to Punt.]]Few naturally occurring substances have had nearly universal value among ancient and modern societies as gold. We often think of gold as something decorative or worn. However, in the ancient and modern worlds, gold was also the standard in which economies and value of other objects were measured by. In effect, gold helped structure and continues to help structure economies around the world today.It was not until the 20th Century that most countries abandoned the gold standard.

===How Gold Became Important for Economies===Gold has been found in a variety of ancient societies in the New and Old Worlds. In almost all these contexts, gold was often buried with high status individual, indicating its value to ancient elites and leaders. This was true for prehistoric as well as historic societies. While gold was valued as a high status object, as societies began to form established governments and kingship, starting in Egypt and Mesopotamia, gold began to take an important value for trade. Initially, the trade was because of demand by elites. However, the value of gold also was in the fact it was not a perishable material. It was one of the few substances that was nearly universally valued, was easily transportable, and was not perishable. Societies in Mesopotamia and Egypt began to see its worth as a safeguard against fluctuations of other important commodities, with grain being the most important one. Silver also played a similar role in societies, where silver was often combined with gold to create electrum. <ref>For more on the importance of gold to ancient societies, see: Rapp, George Robert. 2009. <i>Archaeomineralogy.</i> 2nd ed. Natural Science in Archaeology. Berlin ; London: Springer.</ref>

Another aspect of gold was that it began to be seen as a substance given by the gods, as its purity and shiny luster made it seen as a divine substance. By the 3rd millennium BCE, most likely spanning the Near East and the Indus, gold was used to make statues of gods. One aspect affecting gold was the fact that it was not evenly dispersed. Regions south of the 1st and 2nd cataract in the Nile soon became among the most important sources of gold that Egypt heavily exploited in the 3rd millennium BCE. The security that gold offered as well as its association with the gods increasingly made many objects, including luxury goods such as other precious stones or metals, valued relative to gold.Gold was also a motivator for trade colonization for Egypt, where Punt was famed for its precious items such as gold that Egypt valued for its trade worth as well as the beauty of the substance (Figure 1).<ref>For more on the relevance of gold to ancient societies' economy, religions, and culture, see: Bernstein, Peter L. 2004. <i>The Power of Gold: The History of an Obsession.</i> Illustrated ed. New York: Wiley.</ref>

In early Chinese dynasties, gold probably did not play as important a substance role in society as jadedid for luxury objects and wealth display. However, it was still used to decorate objects and often was intermixed with other precious materials. HoweverNevertheless, as gold became a key medium of exchange or value of exchange, gold in China also gained increasing value in the 1st millennium BCE, where it was locally valued and important for trade.<ref>For more on how gold developed in China as an important substance, see: Bunker, Emma C. 1993. “Gold in the Ancient Chinese World: A Cultural Puzzle.” <i>Artibus Asiae</i> 53 (1/2): 27. doi:10.2307/3250506.</ref>

===Later Developments===[[File:Nerva Aureus Concordia.png|thumbnail|left|300px|Figure 2. Gold coin from the 1st century CE from the Roman Empire.]]While gold gained increased importance in places, particularly as international trade developed more formally in the 3rd and 2nd millennium BCE across the Mediterranean and Central Asia, from there the worth of gold did stall for a period. The next period of expansion likely occurred when coinage was developed. Sometime by the early 6th century BCE, silver and gold were now used to create coins. As coins were intended to symbolize value, it was important now that gold had to be pure. In fact, electrum, which combined silver and gold, was outlawed in Lydia, which has been considered the first state to use coinage. The use of coinage was initially in international trade. As empires developed across the Mediterranean in the mid to late 1st millennium BCE, that now connected the Mediterranean basin with Central Asia and India, coinage became more important for trade. The rise of the Achaemenid and particularly Greek-based empires in Bactria and Seleucia helped spread coinage to many regions. Gold now became the key material that was used for the most valued exchanges across much of the Old World. Expanding Greek colonies in Europe, increased trade across Central Asia, which became the Silk Road, and seaborne trade via India and the Arabian Sea became some of the most important trade routes in the Roman and late Classical period.<ref>For more on the role of gold coinage in international trade, see: Harris, Edward Monroe, David Martin Lewis, and Mark Woolmer, eds. 2015. <i>The Ancient Greek Economy: Markets, Households and City-States.</i> New York: Cambridge University Press.</ref>

While gold gained increased importance in placesIn effect, what emerged, particularly as key international trade routes such as the Silk Road developed more formally in the 3rd and 2nd millennium BCE across the Mediterranean and Central Asia, from there the worth of was that gold did stall for a period. The next period became one of expansion likely occurred when coinage was developed. Sometime by the early 6th century BCEkey commodities that supported the value of trade items such as silk, metals, spices, silver and gold were now used to create coinsother substances traded. As coins were intended to symbolize valueThe Roman's, it was with their important now that gold had to be pure. In facttrade role, electrum, which combined spread the use of silver and gold, was outlawed coins to different areas of their empire in LydiaEurope (Figure 2). After the collapse of the Roman Empire, which has been considered the first state to use coinage. The use minting of coinage was initially coins had halted in international trademany regions, particularly northern Europe. As empires developed across the Mediterranean in However, the mid Byzantine Empire continued to late 1st millennium BCE, that now connected mint gold coins and the Mediterranean basin with Central Asia and India, coinage <i>bezant</i> became more important for tradea standard used by that Empire. The rise of the Achaemenid Byzantine Empire dominated Mediterranean trade and particularly Greek-based empires southern European trade in Bactria and Seleucia helped spread coinage the early Medieval period, leading to many the gold standard becoming paramount in those regions. Gold now became the key material that was continued to be used for the most valued exchanges across much of the Old World. Expanding Greek colonies in Europe, increased trade across Central Asia, which became along the Silk Road, and seaborne related trade via India and the Arabian Sea became some of the most important routes.<ref>For more on how gold continued to shape world trade routes in the Roman early Medieval period, see: Bentley, Jerry H., and late Classical periodHerbert F. Ziegler. 2011. <i>Traditions & Encounters: A Global Perspective on the Past.</i> 5th ed. New York: McGraw-Hill, pg. 327.</ref>

In effect, what emerged, as key international trade routes such as the Silk Road developed, was gold became of the key commodities that supported the value of trade items such as silk, metals, spices, and other substances traded. The Roman's, with their important trade role, spread the use of silver and gold coins to different areas of their empire in Europe. After the collapse of the Roman Empire, the minting of coins had halted in many regions, particularly northern Europe. However, the Byzantine Empire continued to mint gold coins and the <i>bezant<dh-ad/i> became a standard used by that Empire. The Byzantine Empire dominated Mediterranean trade and southern European trade in the early Medieval period, leading to the gold standard becoming paramount. Gold continued to be used along the Silk Road and related trade routes.

In Europe, developing kingdoms, such as those developed by the Anglo-Saxons and Franks, began to use silver rather than gold. Silver, thus, became the main standard over gold in Europe. In the 16th century, Spain was motivated in its conquests of the New World in part by gold as it expanded its empire there and began to ship now large quantities of gold. In Europe, gold, once again, began to have greater importance in its role in the economy. It was only under the reign of Queen Anne in the early 18th century, however, and particularly after the Napoleonic Wars, that gold began to become important again in the play a central role it played in the economyincreased international trade. The British specie began to be the standard that was used in the 18th and 19th centuries, where laws in the early 19th century helped to solidify its role. As Britain's trade empire increased, along with its trade influence, the gold standard, once again, began to spread across the globe, similar to how it did during the Classical period.<ref>For more on the spice, see: Andrei, Liviu C. 2011. <i>Money and Market in the Economy of All Times: Another World History of Money and Pre-Money Based Economies.</i> London and New York.</ref>

Major disruptions occurred in World War I, when the British specie became in short supply and there was increased distruption to international trade during the conflict. The gold coin standard was, thus, changed to gold bullion after the war in Britain. Fluctuations and disruptions occurred due to the Great Depression and World War II; however, gold continues to play a key role in major Western and other economies today.During the 1970s and later, that some major economies began to shift away from a gold standard.<ref>For more on the shifts away from the gold standard, see: Bayoumi, Tamim A., Barry Julian Eichengreen, and Mark P. Taylor, eds. 1996. <i>Modern Perspectives on the Gold Standard.</i> Cambridge: Cambridge Univ. Press.</ref>

===Deep Impact of Gold===Gold has had a large impact beyond its immediate decorative qualities. For economies, in the ancient and modern worlds, gold was used to standardize trade across large distances spanning, initially, much of the Old World and later the New World. Given gold's position in international trade, empires also expanded in part to control gold trade. This was the case in the Roman and Byzantine Empires, where expansion included control of gold resources from Africa and parts of Asia. Already in the Bronze Age, Egypt played an important, if not dominant, role in economic and diplomatic exchange because it controlled vast gold resources. In the Amarna Age, in the 14h century BCE, Egypt became the center of diplomatic exchanges across the Mediterranean and Near East because of its control of gold resources. It also used gold to leverage its trade position. Similarly, Britain used its control of gold resources in dictating international trade in the 18th and 19th centuries, where it played a dominant role in international exchanges. This gave Britain a dominant diplomatic role, as it was able to influence economies in the Old and New Worlds.<ref>For more on the ancient ramifications of gold on economies and politics, see: Finley, M. I. 1999. <i>The Ancient Economy.</i> Updated ed. Sather Classical Lectures, v. 48. Berkeley: University of California Press.</ref>

Gold has had a large impact beyond its immediate decorative qualities. For economies, in the ancient and modern worldsIn effect, gold was has been used to standardize control not just trade across large distances spanningand prices, initially, much but the key role of the Old World and later the New Worldgold has been its ability to influence international politics. Given gold's position in Countries that controlled its supply were able to most influence international trade, empires also expanded in part to control gold tradepolitical agreements, and forge political alliances. This One key outcome was the case discovery of the New World. The Spanish in the Roman and Byzantine Empiresearly 16th century, where expansion included control who explored much of gold resources from Africa and parts of Asia. Already in the Bronze Age, Egypt played an important, if not dominant, role New World in economic Central and diplomatic exchange because it controlled vast South America, were able to find large quantities of gold resourcesthat gave them greater international clout. In the Amarna Ageeffect, in the 14h century BCE, Egypt became the center gold was one of diplomatic exchanges across the Mediterranean key reasons why European colonists and Near East because of its control of gold resourcesexplorers not only displaced native populations but brought European customs and other influences into the New World. It Gold may have been a motivator for economic power, but it led to political and cultural changes that also used gold helped to leverage its trade positionbring the New and Old Worlds together, for better and worse. Similarly, Britain used its control <ref>For more on the influence of gold resources in dictating international trade in exploration and the importance the 18th and 19th centuries, where it New World played a dominant role in international exchangeseconomies and politics, see: Thomas, Hugh. 2004. This gave Britain a dominant diplomatic role, as it was able to influence economies in <i>Rivers of Gold: The Rise of the Old and New WorldsSpanish Empire.</i> A Phoenix Paperback. London: Phoenix. </ref>

In effect===Summary===The simple, common appeal of gold has been used led to control not just its prehistoric presence in many societies. However, as societies developed formal governments and international trade and pricesdeveloped, but gold took on the key role of gold has been its ability to being an important medium for exchange and trade. This influence international politics. Countries that controlled its supply were able on the economy helped it to most influence international make tradeitems stable in their prices, political agreements, and forge political alliancesbut it also motivated states to control gold's access. One key outcome was The first example of how the discovery control of gold gave great power occurred in ancient Egypt in the New World2nd millennium BCE. The Spanish This occurred also in the early 16th century, who explored much period of the New World Roman Empire, where that state played an important role in Central international trade through its access and South America, were able to find large quantities control of gold that gave them greater international clout. In effect, The Spanish later demonstrated how gold was one motivated their exploration and imperial expansion. The rise of the key reasons why European colonists and explorers not only displaced native populations but brought European customs and British Empire influenced other influences into the New World. Gold may have been a motivator countries' adoption of gold as being an important standard for economic power, but it led to political and cultural changes that also helped to bring the New and Old Worlds together, for better and worsecurrency value.

==Summary==The simpleGold, more recently, has been avoided as the standard for currency value. In part, common appeal this is because of the history of gold led to , where its prehistoric presence limited distribution has caused imbalances in many societies. However, as societies developed formal governments and international trade developed, gold took on as an important medium for exchange and trade. This influence on the world economy helped it to make values of objects stable, but where countries that controlled it also motivated states were able to control its accessgain unprecedented power. The first example of how For the United States, moving away from the control of gold gave great power standard occurred as a way to avoid gold fluctuations, limitations in ancient Egypt in currency supply, and control of the 2nd millennium BCEeconomy by foreign powers. The occurred also However, other countries, such as China, see that in the period of the Roman Empirelong-term gold may have great value, where that state played an important role in particularly if there are future major disruptions to international trade through its access and control , once again, a standard such as gold is needed to provide value to currencies or international trade. In effect, the long-term viability of global economies without using goldas a standard could be tested in the years to come. The Spanish later demonstrated <ref>For more on how the move away from the gold motivated their exploration and imperial expansionstandard influences economies, see: Cooper, George. 2010. <i>The rise Origin of Financial Crises: Central Banks, Credit Bubbles and the British Empire influenced other countries adoption of gold as being an important standard for currency valueEfficient Market Fallacy.</i> Petersfield: Harriman House.</ref>

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