| It is not known when gold was first discovered
but it is clear that from ancient times people have prized gold.
Gold was associated with the Gods and so has held a special
regard. Archaeologists have found gold cups and gold jewellery
made as early as 3500BC by the people of the ancient civilization
at Ur in Mesopotamia (Iraq). Gold jewellery from about the same
period has been found in the tombs of the Egyptian Pharaohs.
In England Anglo-Saxon gold work was of very high quality.
Examples of gold jewellery were found in the Anglo-Saxon burial
at Sutton Hoo in Suffolk. Celtic craft workers produced many
fine pieces of jewellery. An outstanding example is one Tara
Brooch made during the 700s. It is now in the National Museum
of Ireland in Dublin. During the middle ages, goldsmiths founded
associations called guilds to protect the secrets of their
craft. In the 1500s, Italian goldsmiths were the best in Europe,
amongst the most skilful was the goldsmith Benvennto Ceilini
(1500-1571).
Gold is a metallic element, which was one of the first metals
known to man. Possession of this attractive bright yellow
metal has been a mark of wealth for thousand of years. Gold
has been very valuable throughout the ages chiefly because
of it is scarce but this metal owes much to its physical properties
of beauty, softness, resistance to chemicals and density.
Gold has a lovely yellow colour and a soft metallic glow.
Its softness makes it easy to work with. Scientists describe
gold as ductile because it can be drawn out into fine wire.
They say it is malleable because it can be hammered into thin
sheets. It can be shaped into any form that is desired.
A mineral that gold seekers found and often confused with
gold is pyrite, a compound of iron and sulphur. As this looks
like gold but has no value, it became known as Fool’s
Gold.
Nations use gold as a form of international money. All countries
accept gold in payment for international debts. During the
early 1900s most countries were on gold standard. This meant
that a stated amount of gold could be obtained for most paper
money at any national bank or at the national treasury. The
United Kingdom abandoned the Gold Standard in 1914. This led
to a fall in the pound. The UK returned to the Gold Standard
in 1925. Economical and banking problems made worse by an
International trade slump, caused the UK to abandon the Gold
Standard again in 1931. The United States abandoned the Gold
Standard in 1933. From then on UK Pound and US Dollar in paper
could no longer be converted into gold. Eventually by end
of the 1930s no countries were operating the Gold Standard.
Still gold was widely used as a way of measuring the value
of currency until the v1970s. Governments and banks own today
more than half of the worlds gold. Most of the US Gold Reserves,
the largest in the world are stored underground at Fort Knox,
Kentucky. Today the price of gold rises and falls in relation
to demand for the metal. The demand for gold comes mainly
from companies, which use gold to make jewellery or other
products. Sometimes in a country where the currency is weak,
the demand for gold may come from speculators, people who
gamble on a change in the price, as is the case in India.
Countries sometimes are forced to use their gold reserves
to make payments when their currency is unacceptable to those
from whom they buy.
Mainly today gold is used in carat jewellery, electronics,
dentistry, industrial and decorative applications, medals
and imitation coins and official coins.
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