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What Is The Gold Standard History?

gold bullion

What Is The Gold Standard History?

The gold standard history dates back to the 17th century, but the use of gold has played a key role in history for over 5,000 years. The gold standard was a monetary system where the value of a country’s currency or paper money was directly linked to gold. Even though the gold standard is no longer used, we still use gold as a means for investing and collecting.

The gold coin dealers at William Youngerman understand gold’s intrinsic value. Due to its scarcity, high density, diversification and inherent value, gold is by far the most important heavy metal and that is why we are dedicated to providing our professional advice when it comes to buying and selling gold coins. We have over 50 years of experience helping investors and avid coin collectors diversify their investments and add to their coin collections.

The Gold Standard History

Around 700 B.C., gold was officially made into coins for the first time. Between 1696 and 1812, the development and regulation of the gold standard began as the introduction of paper money caused some issues. Unlike paper money, the gold standard allowed a country to set a fixed price for gold, as well as buy and sell at that price. That fixed price was also used to determine the value of a country’s currency. This helped to prevent and avoid inflation and deflation. For decades before World War I, gold was used as payment between countries in international trade deals.

Currently, the gold standard is not used by any country or government. During the Great Depression, all Americans were forced to convert their gold coins, gold bullion, and certificates into U.S. dollars. The United States stopped using the gold standard in 1933, a few years after Great Britain. The gold standard was instead replaced by fiat money, a term used to describe a currency that is used because of a government’s order that is must be accepted as a form of payment. With a fiat monetary system, the value of a currency is not based on a physical commodity but is instead allowed to fluctuate against other foreign currencies.

Modern Day Use Of Gold

Today, the price of gold is determined by the demand for the metal and still serves an important function. Gold is a major financial asset for countries and central banks. This precious metal helps banks hedge against loans made to their government, and is also used as an indicator of economic health. Gold is also used by many investors as an asset that helps to diversify investment portfolios. As true money, it will always be the true backbone of the financial system.

Gold Coin Dealers In Boca Raton

If you are wanting to begin investing in gold then contact William Youngerman for the best prices of gold coins, precious metals, and even rare paper currencies. As the top gold coin dealers in Boca Raton, we understand the importance of investing in gold in order to solidify an investment portfolio. We buy and sell gold coins and bullion, and gold collections from around the world. Call us now at 1-800-327-5010 to learn more about gold coin collecting tips or gold investing opportunities.

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