Why Is Gold The Perfect Element For Currency?

Above: Why Is Gold The Perfect Element For Currency?

Is gold money? If there were to be one element to use as a currency gold would be that element. Gold is malleable, rare but not too rare like platinum, not dangerous to humans, and pretty. But why do we value gold, and is gold truly the perfect currency in an age of funny looking paper money?

“Stable money” means money that does not change in value. In practical terms, this has always been achieved, as closely as has been possible, by linking the value of the currency to gold and silver, and finally, in the late 19th century, to gold alone. This was true for approximately 5,000 years, from about 3200 B.C. to 1971. There has never been a “stable money” system of any significance, which was not a gold standard system.