Buying Gold? How Gold Became Currency

Buying Gold? How Gold Became Currency

Mar 29th 2020

Posted by LCR Coin

Buying Gold and Why Gold Became Valuable

These days, buying gold isn’t as common as it once was. With the loss of the gold standard and the proliferation of paper currency, few people give thought to how gold became one of the most lasting currencies, and measurements of value, in the world. For thousands of years, gold has been used all over the world in trade, even without the gold standard. If you’re considering buying gold, or even silver investments, Home Stored Gold IRA can break down some of the reasons why gold is seen as valuable to this day.

Universal Appeal

One of the biggest factors in what made gold so valuable is its universal appeal. You would be hard pressed to find any civilization that did not, at some point, value and revere gold after it was discovered in their part of the world. Ancient ruins will often turn up stores of gold, and gold used in the building of temples and crafting of now-valuable antiques. The historic reverence for gold meant that, in the days of exploration and discovery, it was a universal way of trading between countries and cultures that paper money would not have offered. When it comes to buying gold, you can see the care and craft that goes into gold bullion coins, demonstrating that the aesthetic appeal of gold is still alive and well.

Timeless Quality

Gold is durable - it doesn’t corrode and doesn’t lose its physical value. If you’re buying gold, this lasting, durable quality is a major benefit, as you know it isn’t just an investment in your own financial security, but something that has the potential to last for generations. This is something that is never guaranteed through standard methods of saving and investing - no one can predict what the future holds for finance, as much as some like to believe they can. The volatile nature of fiat money offers little of the long-lasting security of precious metal investments.

Density and Size

A less addressed benefit of buying gold, and physical gold generally, is how little space it takes up in relation to its value. Gold is dense, which means that it is compact and potentially portable. While you could argue that having your investments or IRA tied up in a bank takes up no space, in the event of a disaster that causes the markets to crash completely, your savings are suddenly worthless. On the other hand, physical gold, taking up little space in your home, is financial value that you can have in your possession, even when the market tanks.

Appeal, Timelessness, and Size Through History

These three above factors are just some examples of the reason why the value of gold has endured, and why it became a currency and a marker of value for so long.

Visual Appeal

In terms of appeal, it’s easy to see how this made trade and relations between countries and cultures simpler in times when the world was nowhere near as connected as we know it now.

Lasting Quality

The timeless and lasting quality of gold meant that families and societies could ensure the wealth and security of the coming generations, especially in earlier times that were even less predictable.

Portable Profit

As for the portability - in days when travel was much more difficult, and communication between people and institutions was not instantaneous like it is now, being able to transport your fortune was made that much easier with physical gold.

Buying Gold and Lasting Value

While gold might not be considered currency now, buying gold is a great way to secure and ensure financial stability not just for you, but for your family in years to come. We all know how fragile finances can be, and the strength and durability of gold, along with aesthetic appeal - all reasons it became currency in the first place - offer the ideal antidote. If you’re interested in buying gold, contact Home Stored Gold IRA today.]]>