Can gold coins be used as currency?

Gold has always played an important role in the international monetary system. Gold coins were first minted by order of King Croeso of Lydia (an area that is now part of Turkey), around 550 BC. Citations are provided for each source to facilitate reader research. Therefore, these documents are a valuable resource for researchers seeking an even deeper knowledge of the history of money and gold.

Gold does not meet all of the above criteria needed to be considered a currency today, but it was used as a currency in most economies before the 20th century. Unlike fiat money and paper money, gold is no longer issued by governments, for example, in coins in circulation. However, it is used as a medium of exchange and can be a basis for trade. But if you want to own coins, in fact, there are several gold bullion coins in the world.

Gold bullion coins are used as an alternative form of wealth storage to traditional currency. If you take two metals, one denser than gold and one lighter, you can mix them in the right proportion to make a coin that has the same density as gold. In addition, it can electroplate the outside. I once saw a TV news story about a man who drilled holes in gold bars he had bought, to find them filled with lead inside.

Approximately 150 documents are divided into three sections that roughly correspond to the changing position of gold in the international economic system. The attractiveness of gold bullion coins is that they retain almost their full value regardless of the change of government or whether they are transported outside the country of issue. Known as the 1-ton gold kangaroo coin with a face value of one million dollars, it contains one ton of 9999 pure gold and measures approximately 80 cm in diameter by 12 cm in thickness. However, the gold coin (in numismatic terminology) always refers to a coin that is (more or less) made of gold, and does not include coins made of manganese brass or other alloys.

Circulating gold coins were usually made of an alloy, as other metals were mixed into the coin to make it more durable. Report entitled “The suspension of the gold standard in Great Britain and its effect on the countries of Europe”. At the end of the 19th century, many of the world's major currencies were fixed on gold at a fixed price per ounce, under the “gold standard”, and this persisted in different forms for about a hundred years. While 24 karat gold coins have what is known as purity of 9999 thousandths, other very popular coins, such as the British Sovereign and the American Eagle, have a fine of 22 carats, 3D 0.9167.However, the gap between buying and selling prices can be wide, reaching 10-15% in some currencies.

The good news is that you don't have to be from one of these states to build your own private gold and silver deposit and a solid money bank. That borrower will likely deposit the borrowed coins in the bank, or if he spends them, the seller will deposit the coins in the bank, from where they can be reborrowed. In the UK, HM Revenue and Customs has added an additional list of gold coins alongside the European Commission's list. Roosevelt reopens banks but maintains ban on gold exports and foreign exchange transactions.

That is why people who understand the problems choose to store only a small emergency reserve as gold coins in bullion. Their real value in weight of gold is much higher and they are not accepted in stores or banks, but they are considered legal tender, which technically turns them into currency and gives them a number of useful tax benefits. .

Mandy Redic
Mandy Redic

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