<<<Back to the list

Gold

Gold articles are found extensively in antiquity mainly as jewelry e.g. Bracelets, rings etc. Early gold artifacts are rarely pure and most contain significant silver contents. This led to the ancients naming another metal - electrum, which was an alloy of gold and silver, pale yellow and similar in color to amber. Therefore, early gold varied from pure through electrum to white gold. The symbol for gold is Au from the latin aurum meaning shining dawn.

Stone age man learned to fashion gold into jewelry and ornaments, learning that it could be formed into sheets and wires easily. However, its malleability, which allows it to be formed into very thin sheet (0.000005 inches), ensures that it has no utilitarian value and early uses were only decorative. As gold is a noble metal, being virtually noncorrosive and tarnish free, it served this purpose admirably.

Gold is widely dispersed through the earth's crust and is found in two types of deposits : lode deposits, which are found in solid rock and are mined using conventional mining techniques, and placer deposits which are gravelly deposits found in stream beds and are the products of eroding lode deposits. Since gold is found uncombined in nature, early goldsmiths would collect small nuggets of gold from stream beds etc., and then weld them together by hammering. Thus we find the first problem in process metallurgy : The metal deposit must be identified. In the case of the first metals color was the most important factor as it allowed the metal to be recognized in surrounding rock, stones, gravel and dirt (gangue) and separated. Clearly, after recognition, separation is next problem followed by concentration. These three steps are very important and the economics of these steps usually define whether it is viable to produce the metal from a set deposit. In the early days all three steps were carried out simultaneously. Gold is widely dispersed throughout the earths crust (0.005 ppm) at a very small level, therefore, it is very important to find naturally occurring concentrations. The scarcity of gold and its value, due to mankinds fascination with its color, have lead to gold being the one of the more important metals in daily life. Gold is a chemical element in the periodic table that has the symbol Au (L. aurum) and atomic number 79. A soft, shiny, yellow, heavy, malleable, ductile (trivalent and univalent) transition metal, gold does not react with most chemicals but is attacked by chlorine, fluorine and aqua regia. The metal occurs as nuggets or grains in rocks and in alluvial deposits and is one of the coinage metals.Gold was formerly used as a monetary standard for many nations and is also used in jewelry, dentistry, and in electronics. Its ISO currency code is XAU.

Notable characteristics

Gold is a metallic element with a characteristic yellow color, but can also be black or ruby when finely divided, while colloidal solutions are intensely colored and often purple. These colors are the result of gold's plasmon frequency lying in the visible range, which causes red and yellow light to be reflected and blue light to be absorbed. It is one of only three metals which have an actual easily-identifiable color; the other two are copper, which is red, and caesium, which has a pale golden color. It is the most malleable and ductile metal known; a single gram can be beaten into a sheet of one square meter, or an ounce into 300 square feet. A soft metal, gold will readily form alloys with many other metals. This can be done to increase its strength, or create several exotic colors, sold for instance in the western United States to the tourist trade as "Black Hills" gold. Adding copper yields a redder metal, iron green, aluminium purple, platinum metals white, and natural bismuth together with silver alloys produce black. Native gold contains usually eight to ten per cent silver, but often much more alloys with a silver content over 20% are called electrum. As the amount of silver increases, the color becomes whiter and the specific gravity lower. Gold is a good conductor of heat and electricity, and is not affected by air and most reagents. Heat, moisture, oxygen, and most corrosive agents have very little chemical effect on gold, making it well-suited for use in coins and jewelry; conversely, halogens will chemically alter gold, and aqua regia dissolves it. Common oxidation states of gold include +1 (gold (I) or aurous compounds) and +3 (gold (III) or auric compounds). Gold ions in solution are readily reduced and precipitated out as gold metal by the addition of virtually any other metal as the reducing agent. The added metal is oxidized and dissolves allowing the gold to be displaced from solution and be recovered as a solid precipitate.Recent research undertaken by Frank Reith of the Australian National University shows that microbes play an important role in the formation of gold deposits, transporting and precipitating gold to form grains and nuggets that collect in alluvial deposits.

Applications

Pure gold is too soft for ordinary use and is hardened by alloying with silver, copper, and other metals. Gold and its many alloys are most often used in jewelry, coinage and as a standard for monetary exchange in many countries. Because of its high electrical conductivity and resistance to corrosion and other desirable combinations of physical and chemical properties, gold also emerged in the late 20th century as an essential industrial metal. Gold can be made into thread and used in embroidery. Gold performs critical functions in computers, communications equipment, spacecraft, jet aircraft
 engines, and a host of other products. The resistance to oxidation of gold has led to its widespread use as thin layers electroplated on the surface of electrical connectors to ensure a good connection. Gold is used in restorative dentistry especially in tooth restorations such as crowns and bridges. Colloidal gold (a gold nanoparticle) is an intensely colored solution that is currently studied in many labs for medical, biological and other applications. It is also the form used as gold paint on ceramics
 prior to firing. Chlorauric acid is used in photography for toning the silver image. Gold(III) chloride is used as a catalyst in organic chemistry. It is also the usual starting point for making other gold compounds. Disodium aurothiomalate is a treatment for rheumatoid arthritis (administered intramuscularly). It inhibits lymphocyte proliferation, lysosomal enzyme release, the release of reactive oxygen species from macrophages, and IL-1 production. However, it can also cause photosensitive rashes, gastrointestinal disturbance, and kidney damage. The gold isotope Au-198, (half-life: 2.7 days) is used in some cancer treatments and for treating other diseases. Gold is used as a coating enabling biological material to be viewed under a scanning electron microscope. Many competitions and honors, such as the Olympics and the Nobel Prize, award a gold medal to the winner (with silver to the second-place finisher, and bronze to the third.) Since it is a good reflector of both infrared and visible light, it is used for the protective coatings on many artificial satellites.

Gold flake is used on and in some gourmet sweets and drinks. Having no reactivity it adds no taste but is taken as a delicacy. White gold (an alloy of gold with platinum, palladium, nickel, and/or zinc) serves as a substitute for platinum. Green gold (a gold/silver alloy) is used in specialized jewelry while gold alloys with copper (reddish color) are more widely used for that purpose (rose gold).

History

Gold (Sanskrit jval, Greek  [khrusos], Latin aurum for "shining dawn", Anglo-Saxon gold, Chinese  [j+n]) has been known and highly valued since prehistoric times. It may have been the first metal used by humans and was valued for ornamentation and rituals. Egyptian hieroglyphs from as early as 2600 BC describe gold, which king Tushratta of the Mitanni claimed was as "common as dust" in Egypt. Egypt and Nubia had the resources to make them major gold-producing areas for much of history. Gold is also mentioned several times in the Old Testament. The south-east corner of the Black Sea was famed for its gold. Exploitation is said to date from the time of Midas, and this gold was important in the establishment of what is probably the world's earliest coinage in Lydia between 643 and 630 BC. The European exploration of the Americas was fueled in no small part by reports of the gold ornaments displayed in great profusion by Native American peoples, especially in Central America, Peru, and Colombia. Gold has long been considered one of the most precious metals, and its value has been used as the standard for many currencies (known as the gold standard) in history. Gold has been used as a symbol for purity, value, royalty, and particularly roles that combine these properties (see gold album).Gold in antiquity was relatively easy to obtain geologically; however, 75% of all gold ever produced has been extracted since 1910. It has been estimated that all the gold in the world that has ever been refined would form a single cube 20 m (66 ft) a side. The primary goal of the alchemists was to produce gold from other substances, such as lead presumably by the interaction with a mythical substance called the philosopher's stone. Although they never succeeded in this attempt, the alchemists promoted an interest in what can be done with substances, and this laid a foundation for today's chemistry. Their symbol for gold was the circle with a point at its center, which was also the astrological symbol, the Egyptian hieroglyph and the ancient Chinese character for the Sun. For modern attempts to produce artificial gold, see gold synthesis. During the 19th century gold rushes occurred whenever large gold deposits were discovered, including the California, Colorado, Otago, Australia, Witwatersrand, Black Hills, and Klondike gold rushes.
Because of its historically high value, much of the gold mined throughout history is still in circulation in one form or another.

One ounce gold bar.

Like other precious metals, gold is measured by troy weight and by grams. When it is alloyed with other metals the term carat or karat is used to indicate the amount of gold present, with 24 carats being pure gold and lower ratings proportionally less. The purity of a gold bar can also be expressed as a decimal figure ranging from 0 to 1, known as the millesimal fineness, such as 0.995.The price of gold is determined on the open market, but a procedure known as the Gold Fixing in London, originating in 1919, provides a twice-daily benchmark figure to the industry. Historically gold was used to back currency in an economic system known as the gold standard in which one unit of currency was equivalent to a certain weight of gold. As part of this system, governments and central banks attempted to control the price of gold by setting values at which they would exchange it for currency. For a long period the United States government set the price of gold at $20.67 per troy ounce ($664.56/kg) but in 1934 the price of gold was set at $35.00 per troy ounce ($1125.27/kg). By 1961 it was becoming hard to maintain this price, and a pool of US and European banks began to act together to defend the price against market forces. On March 17, 1968, economic circumstances caused the collapse of the gold pool, and a two-tiered pricing scheme was established whereby gold was still used to settle international accounts at the old $35.00 per troy ounce ($1.13/g) but the price of gold on the private market was allowed to fluctuate; this two-tiered pricing system was abandoned in 1975 when the price of gold was left to find its free-market level. Central banks still hold historical gold reserves as a reserve asset although the level has generally been declining. The largest gold depository in the world is that of the U.S. Federal Reserve Bank, held at Fort Knox. Since 1968 the price of gold on the open market has ranged widely, with a record high of $850/oz ($27,300/kg) on 21 January 1980, to a low of $252.90/oz ($8,131/kg) on 21 June 1999 (London Fixing). Prices have risen to the $468/oz mark in 2005, due to a depreciation of the US dollar and inflation due to rising energy costs. The price of gold has remained relatively constant in currencies not tied to the US dollar; for example, it has not varied by more than 10% from 330/oz ( 10,600/kg) or A $560/oz (A$18,000/kg) during this time.

Gold and the money supply

In January 1959 US M3 money supply was $288.8 billion, and the Official Gold Holdings of the United States was then 17'335.1 Tonnes, or about 557 million ounces (there are 32,150.7 Troy Ounces in a Tonne). That means that in 1959, there were $518 in circulation for every ounce of gold reserves held by the USA. Although the theoretical price should then have been $518 per ounce, the actual price, as fixed under the gold standard was only $35 an ounce.
By August 2005, the US M3 money supply had risen to $9'873.9 billion, whilst at the same time the Official Gold Holdings of the United States had fallen to just 8'133.5 Tonnes, or about 261 million Troy Ounces. This means that today, in 2005, there are $37'831 in circulation for every ounce of gold held by the United States.
The above numbers show the falling influence of gold in the monetary system of the world today. Goldbugs believe, or even hope, that one day gold's importance will return as the printing of paper money gets out of control and we end in a hyper-inflationary fiat money collapse.

Restrictions on gold ownership

Because of its use as a reserve store of value, the possession of gold is sometimes restricted or banned. Within the United States, the private possession of gold except as jewelry and coin collecting was banned between 1933 and 1975. President Franklin D. Roosevelt confiscated gold by Executive Order 6102, and President Richard Nixon
 closed the gold window by which foreign countries could exchange American dollars for gold at a fixed rate.

Return of a Gold Standard

In the first few years of the 21st century, reports started to circulate that Malaysia was planning a return to the gold standard -- to issue and use gold dinars as currency in international trade. The purported purpose of this move would be to reduce dependence on the United States dollar as a reserve currency, and to establish a non-debt-backed currency in accord with Islamic law against the charging of interest. Nonetheless, gold dinar currency has not yet emerged.

Gold in investment portfolios

As a tangible investment gold is sometimes held as part of a portfolio because over the long term gold has an extensive history of maintaining its value. It has in the last century gained ground in relation to fiat currencies owing to inflation. Gold becomes particularly desirable in times of extremely weak confidence and during hyperinflation because gold maintains its value even as fiat money becomes worthless. People who enjoy investing in gold are known as goldbugs. Futures contracts based on gold currently trade on various exchanges around the world. In the US this occurs primarily on COMEX (Commodity Exchange) which is a subsidiary of the New York Mercantile Exchange. Speculation about the future price of gold and other commodities is carried on at COMEX. Recently, gold-based ETFs like GLD have emerged as a more convenient investment vehicle.

Occurrence

Native gold from California (top) and Australia (bottom), showing octahedral formations Due to its relative chemical inertness gold is usually found as the native metal or alloy. Occasionally large accumulations of native gold (also known as nuggets) occur but usually gold occurs as minute grains. These grains occur between mineral grain boundries or as inclusions within minerals. Common gold associations are quartz often as veins and sulfide minerals. The most common sulfide associations are pyrite, chalcopyrite, galena, sphalerite, arsenopyrite, stibnite and pyrrhotite. Rarer mineral associations are petzite, calaverite, sylvanite, muthmannite, nagyagite and krennerite. Gold is widely distributed in the Earth's crust at a background level of 0.03 g/1000 kg (0.03 ppm by weight). Hydrothermal ore deposits of gold occur in metamorphic rocks and igneous rocks; alluvial deposits and placer deposits originate from these sources. The primary source of gold is usually igneous rocks or surface concentrations. A deposit usually needs some form of secondary enrichment to form an economically viable ore deposit: either chemical or physical processes like erosion or solution or more generally metamorphism, which concentrates the gold in sulfide minerals or quartz. There are several primary deposit types, common ones are termed reef or vein. Primary deposits can be weathered and eroded, with most of the gold being transported into stream beds where it congregates with other heavy minerals to form placer deposits. In all these deposits the gold is in its native form. Another important ore type is in sedimentary black shale and limestone deposits containing finely disseminated gold and other platinum group metals. Gold occurs in sea water at 0.1 to 2 mg/t (0.1 to 2 ppb
 by weight) depending on sample location.

Production

Economic gold extraction can be achieved from ore grades as little as 0.5 g/1000 kg (0.5 ppm) on average in large easily mined deposits, typical ore grades in open-pit mines are 15 g/1000 kg (1-5 ppm), ore grades in underground or hard rock mines are usually at least 3 g/1000 kg (3 ppm) on average. Ore grades of 30 g/1000 kg (30 ppm) are usually needed before gold will be visible to the naked eye, therefore even in gold mines you will often not see any gold.

Gold ore

Gold is extracted from alluvium ores by techniques of placer mining and from hard rock ores using extractive metallurgy. Refining of the metal is frequently accomplished by chlorination or electrolysis. The old method of using cyanides to chemically extract gold from the mined ore is cheaper, but highly controversial due to the resulting large-scale environmental pollution. The year 2000 spill of a cyanide reserve lake in Romania caused extremely severe fish and bird extinction alongside the river Tisza and hurt political relations in Eastern Europe. It is claimed all the gold that has been mined thorughout the history of mankind could be incorporated in a solid ball with a diameter of 27 meters. However, a huge reserve of gold is found in solution in the world's seas at 0.1 to 2 mg/1000 kg (0.12 ppb) depending on sample location. However, as of 2004 there is no profitable method for recovering gold from sea water. Since the 1880s South Africa has been the source for about two-thirds of the world's gold supply. The city of Johannesburg was built atop the world's greatest gold finds. Gold fields in the Orange Free State and the Transvaal were deep and require the world's deepest mines. The Boer War of 1899-1901 between the British and the white Boers was at least partly over the rights of miners and possession of the gold wealth in South Africa. Other major producers are Canada, United States and Western Australia. Mines in South Dakota and Nevada supply two-thirds of gold used in the United States. Siberian regions of the USSR also used to be significant in the global gold mining industry. Kolar Gold Fields in India is another example of a city being built on the greatest gold deposits in India. In South America, the project Pascua-lama aims at exploitation of rich fields in the high mountains of Atacama, at the border between Chile and Argentina. The idea of making gold out of lesser metals or other cheap substances has fascinated people throughout the centuries. Scientists, kings and charlatans obsessed with the secret art of alchemy accidentally invented practically useful materials (e.g. porcelain), while searching in vain for the philosopher's stone, which was supposed to turn mercury into gold. Modern science has since proven the impossibility of making gold from other elements via chemical reactions. However, it is possible to obtain infinitesimally small amounts of gold by artificial nuclear transformations in particle accelerators. The gold isotopes produced would likely be radioactive. No economically feasible method to manufacture gold artificially has been found or published yet. The possibility of cheap man-made gold would have unforeseen economic and political consequences.

Compounds/isotopes

Although gold is a noble metal, it can form many compounds, auric chloride (AuCl3) and chlorauric acid (HAuCl4) being the most common. Gold compounds can be aurous (univalent, +1) or auric (trivalent, +3). Gold also can under extreme conditions form a +5 state with fluorine (gold pentafluoride, AuF5), as well as (unusually for a metal), a -1 state. Such compounds containing the Au- anion are called aurides and include caesium auride, CsAu, rubidium auride, Rb Au, and tetramethylammonium auride, (CH3)4N+ Au-.Gold also forms:The AuCl4- ion after dissolving in aqua regia Gold halides (F,Cl,Br,I) Gold chalcogenides (O, S, Se,Te) Gold cluster compounds Aurous hydrazide: an explosive olive-green powder, AuN2H4, known archaically as aurum fulminans There is only one stable isotope of gold, and 18 radioisotopes with Au-195 being the most stable with a half-life of 186 days.

Precautions

The human body does not absorb gold very well, thus compounds of gold are not normally very toxic. Liver and kidney damage has, however, been reported for up to 50% of arthritis patients treated with gold-containing drugs. Gold used in dentistry is widely regarded as the safest form of restorative material, as well as the most successful.

Symbolism

Gold has been associated with the extremities of utmost evil and great sanctity throughout history. The Golden Calf is the ultimate symbol of idolatry and revolt against God. Concentration camp guards removing golden teeth from the mouth of gassed holocaust victims is remembered as one of the worst WWII atrocities. On the other hand eminent orators such as John Chrysostom were said to have a mouth of gold with a silver tongue. Anniversaries associated with the sacred 50 year cycle are usually marked as golden wedding, golden jubilee, etc. Medieval kings were inaugurated under the signs of sacred oil and a golden crown, as the latter one was meant to symbolize the eternal shining light of heavens and thus a Christian kings' divinely inspired authority. Wedding rings are usually made of gold hoping the relationship will be similarly lasting and unaffected by a passage of long time. In orthodox christianity the marrying couple is crowned with a geniune golden crown during the church ceremony, an amalgamation of symbolic rites. Although the practical value of gold varies wildly even in relatively adjacent places of the world (e.g. quite common in Turkey but considered the utmost valuable and gift in Sicily), still great human achivements are universally rewarded with gold in the form of medals and miscellanous decoration. Winners of races and prizes are usually awareded the golden medal, the runner-up getting the silver and the third finalist the bronze medal.In communist propaganda, the golden pocket watch and its fastening golden chain were the characteristic depictive accessories of the class enemy, the bourgeois and the industrial tycoons.Gold was probably first found on the ground and used by prehistoric man as a tool. The first known use of gold was in parts of central and Eastern Europe, in 4000BC. Highly sophisticated gold art objects and jewelry dating back to around 3000BC have been discovered by archaeologists in the Sumerian Royal Tombs at Ur, in what is now southern Iraq. The Egyptians used gold to adorn their kings in life and death and, by 1500BC, gold had become a standard medium of international trade. Similarly, goldsmiths of the Chavin civilization in Peru were making ornaments by hammering and embossing gold by 1200 BC.

There are many stories and legends that relate an association of famous people and places with gold. The gold mask that intricately details the facial features of King Tutankamen, the youthful ruler of ancient Egypt, retained its untarnished brilliance when it was uncovered in 1927, after being entombed for more than 3000 years. The Old Testament tells of the wealth of King Solomon's Mines and how his fleet would return from legendary Ophir laden with gold for his treasury. The Queen of Sheba would visit Solomon bearing gifts of gold in appreciation for his advice and wisdom.
According to Greek legend, Midas, king of Phrygia, was granted a wish by the god Dionysius in exchange for a favor, that everything he touched would turn to gold. He begged to have his power removed after realizing how foolish he had been. The search for the Golden Fleece by Jason and the Argonauts was probably based on the method of gold recovery used. At that time, miners extracted most of the gold from alluvial sands in rivers and streams. By washing the gold bearing sand through the sheepskins, gold particles would be trapped by the wool fibres. The fleece would then be dried and burnt in a fire leaving remnant blobs of melted gold.
Around the fifth century BC, the Greek, Chinese and Arabic cultures began to develop ideas about alchemy, in a pseudo-scientific attempt to change base metals into gold. Alchemists searched for the Elixir or Philosopher's Stone, a substance of high purity, that would not only convert metals to gold, but also restore health and provide immortality. These alchemists provided the basis for the modern science of chemistry.
The discovery of America by Christopher Columbus was thought to be an indirect result from the endeavor to uncover the source of China's gold, which had riches beyond any of those of Europe. The lure of gold led the Conquistador's to murder and pillage the central American civilizations of the Aztecs and Incas. These Spanish invaders melted down centuries old artifacts and icons of exquisite craftsmanship into ingots.
About 600BC the Greeks began to use gold coins and many 'city-states' minted their own money in order to conduct trade between states. The rarity and metallic properties of gold made it the ideal choice in the development of coinage.
Currency has remained one of gold's primary uses. It is considered so valuable that we measure all other values by it. In 1944, the International Monetary Fund and the World Bank were created, setting a new international currency standard in terms of gold.
Gold is still considered to be an extremely safe form of financial security, many preferring to hold gold coins and bullion rather than government bonds because of its intrinsic value. Gold has long been used as a store of wealth, with most countries and financial organizations holding gold as part of their financial reserve.
A child finds a shiny rock in a creek, thousands of years ago, and the human race is introduced to gold for the first time.

Gold was first discovered as shining, yellow nuggets. "Gold is where you find it," so the saying goes, and gold was first discovered in its natural state, in streams all over the world. No doubt it was the first metal known to early hominids.
Gold became a part of every human culture. Its brilliance, natural beauty, and luster, and its great malleability and resistance to tarnish made it enjoyable to work and play with. Because gold is dispersed widely throughout the geologic world, its discovery occurred to many different groups in many different locales. And nearly everyone who found it was impressed with it, and so was the developing culture in which they lived.
Gold was the first metal widely known to our species. When thinking about the historical progress of technology, we consider the development of iron- and copper-working as the greatest contributions to our species' economic and cultural progress - but gold came first. Gold is the easiest of the metals. It occurs in a virtually pure and workable state, whereas most other metals tend to be found in ore-bodies that pose some difficulty in smelting. Gold's early uses were no doubt ornamental, and its brilliance and permanence (it neither corrodes nor tarnishes) linked it to deities and royalty in early civilizations.

Gold has always been powerful stuff. The earliest history of human interaction with gold is long lost to us, but its association with the gods, with immortality, and with wealth itself are common to many cultures throughout the world. Early civilizations equated gold with gods and rulers, and gold was sought in their name and dedicated to their glorification. Humans almost intuitively place a high value on gold, equating it with power, beauty, and the cultural elite. And since gold is widely distributed all over the globe, we find this same thinking about gold throughout ancient and modern civilizations everywhere.

Gold, beauty, and power have always gone together. Gold in ancient times was made into shrines and idols ("the Golden Calf"), plates, cups, vases and vessels of all kinds, and of course, jewelry for personal adornment.

The "Gold of Troy" treasure hoard, excavated in Turkey and dating to the era 2450 -2600 B.C., show the range of gold-work from delicate jewelry to a gold gravy boat weighing a full troy pound. This was a time when gold was highly valued, but had not yet become money itself. Rather, it was owned by the powerful and well-connected, or made into objects of worship, or used to decorate sacred locations.

Gold has always had value to humans, even before it was money. This is demonstrated by the extraordinary efforts made to obtain it. Prospecting for gold was a worldwide effort going back thousands of years, even before the first money in the form of gold coins appeared about 700 B.C. In the quest for gold by the Phoenicians, Egyptians, Indians, Hittites, Chinese, and others, prisoners of war were sent to work the mines, as were slaves and criminals. And this happened during a time when gold had no value as 'money,' but was just considered a desirable commodity in and of itself.

The 'value' of gold was accepted over the world. Today, as in ancient times, the intrinsic appeal of gold itself has that universal appeal to humans. But how did gold come to be a commodity, a measurable a unit of value?
The first use of gold as money occurred around 700 B.C., when Lydian merchants produced the first coins. These were simply stamped lumps of a 63% gold and 27% silver mixture known as 'electrum.' This standardized unit of value no doubt helped Lydian traders in their wide-ranging successes, for by the time of Croesus of Mermnadae, the last King of Lydia (570 -546 B.C.), Lydia had amassed a huge hoard of gold. Today, we still speak of the ultra-wealthy as being 'rich as Croesus.'
Gold, measured out, became money. Gold's beauty, scarcity, unique density (no other metal outside the platinum group is as heavy), and the ease by which it could be melted, formed, and measured made it a natural trading medium. Gold gave rise to the concept of money itself: portable, private, and permanent. Gold (and silver) in standardized coins came to replace barter arrangements, and made trade in the Classic period much easier.
Gold was money in ancient Greece. The Greeks mined for gold throughout the Mediterranean and Middle East regions by 550 B.C., and both Plato and Aristotle wrote about gold and had theories about its origins. Gold was associated with water (logical, since most of it was found in streams), and it was supposed that gold was a particularly dense combination of water and sunlight.
Their science may have been primitive, but the Greeks learned much about the practicalities of gold mining. By the time of the death of Alexander of Macedon (323 B.C.), the Greeks had mined gold from the Pillars of Hercules (Gibraltar) all the way eastward to Asia Minor and Egypt, and we find traces of their placer mines today. Some of the mines were owned by the state, some were worked privately with a royalty paid to the state. Also, nomads such as the Scythians and Cimmerians worked placer mines all over the region. The surviving Greek gold coinage and Scythian jewelry both show superb artistry.

The Roman Empire furthered the quest for gold. The Romans mined gold extensively throughout their empire, and advanced the science of gold-mining considerably. They diverted streams of water to mine hydraulically, and built sluices and the first 'long toms.' They mined underground, also, and introduced water-wheels and the 'roasting' of gold-bearing ores to separate the gold from rock. They were able to more efficiently exploit old mine-sites, and of course their chief laborers were prisoners of war, slaves, and convicts.

A monetary standard made the world economy possible. The concept of money, (i.e., gold and silver in standard weight and fineness coins) allowed the World's economies to expand and prosper. During the Classic period of Greek and Roman rule in the western world, gold and silver both flowed to India for spices, and to China for silk. At the height of the Empire (A.D. 98-160), Roman gold and silver coins reigned from Britain to North Africa and Egypt.

Money had been invented. Its name was gold.

     Gold is used in organbuilding for contacts.

Top