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The Gold Series: The Most Sought After Metal on Earth

THE MOST GOLDON EARTH THE GOLD SERIES SOUGHT AFTER METAL PRESENTED BY EGOLDCORP PART GOLD, LIKE ALL NATURAL ELEMENTS HEAVIER THAN IRON, WAS NOT BORN ON EARTH... • Instead, A COLLISION OF NEUTRON STARS or supernova explosions are thought to be the origin of the yellow metal. SO, HOW DID GOLD BECOME THE MOST SOUGHT AFTER METAL ON EARTH? AN EARLY LOVE GOLD OF • Gold was one of the FIRST METALS DISCOVERED by ancient peoples because it could be found in pure native form such as nuggets or flakes. Gold was first used ornamentally because it is the most MALLEABLE and DUCTILE metal. • However, it is gold's PERMANENCE and lustre that linked it to concepts such as royalty and immortality. Gold does not tarnish or corrode. Many early civilizations used gold in jewelry including the Egyptians, Greeks, and Mesopotamians. Over time, gold became synonymous with WEALTH AND POWER. GOLD REVOLUTIONIZES The ancient trading system of barter was terribly inefficient. Barter had FOUR MAJOR PROBLEMS, which precious metals solved: TRADING COINCIDENCE OF WANTS Each trader must want what the other has. INDIVISIBILITY OF GOODS Some goods are difficult or impossible to divide into smaller portions for trade. NO COMMON MEASURE OF VALUE Values of goods cannot be measured easily against each other. NO STORE OF VALUE Many goods are perishable and cannot hold value over the long-term. Money has been used to solve the problems of barter from as far back as 564 BC THE LYDIANS The first people to mint coins were the Lydians in what is now Turkey. These coins were made of electrum, a naturally occurring alloy of gold and silver. THE CHINESE Near this time, the Chinese began using a square gold coin called the Ying Yuan for trade. THE GREEKS Greek city-states minted their own distinct coins and forced foreigners to change money into LOCAL CURRENCY at an exchange rate favourable to the state. THE ROMANS The Romans were the first to use gold and silver in a widespread MONETARY SYSTEM. DID YOU KNOW? During Roman times, the silver to gold ratio was 12:1 The Romans were able to extract gold on a large scale through the advancement of HYDRAULIC MINING. •----- However, it wasn't enough to make up for the Empire's excessive spending. They needed to "DEBASE" • their currency by adding base metals to the gold and silver to make it easier for them to pay their debts. ...-- This debasement of Roman currency is one of the reasons cited by historians as a cause for the DOWNFALL OF THE EMPIRE. DID YOU KNOW? During the reign of Claudius II Gothicus (268-270 A.D.) the amount of silver in a supposedly (100%) silver denarius was only .02%. 90% 50% - SILVER CONTENT OF COINAGE (%) 10% - 50 100 150 200 250 GOLD Year (AD) AS MONEY It is no coincidence why so many civilizations chose to use gold as sound money. Gold's properties made it the PERFECT CHOICE GOLD IS RARE The world gold supply increases by only 1% to 2% per year. GOLD HAS INTRINSIC VALUE GOLD IS MALLEABLE AND SOFT This allows it to be easily pressed into coins. Gold has been universally valued since the beginning of civilization. GOLD IS IMMORTAL GOLD IS EASY TO IDENTIFY Gold does not react with air, moisture, or most corrosive agents. Its density and unique colour make it unmistakeable GOLD MEETS ALL THE PROPERTIES OF MONEY 1) Medium of exchange 2) Store of value 3) Unit of account: divisible, fungible, portable Gold MONEY HAD BEEN INVENTED AND ITS NAME WAS ------- -------- ,---- Since its first widespread use in Rome, civilizations continued to use gold and silver as money through most of history. HOWEVER, with the inventions of banking and paper currency, the role of gold began to transform. THE GOLD STANDARD A gold standard is a monetary system in which the standard economic unit of account is based on a fixed quantity of gold. This allowed for a FIXED EXCHANGE rate between countries. 1717 AD The Master of Britain's Royal Mint, none other than Sir Isaac Newton, changed the bimetallic relationship between gold coins and the silver penny. This drove silver out of circulation and put Britain on a DE FACTO GOLD STANDARD. 3 TYPES OF GOLD STANDARDS GOLD SPECIE STANDARD GOLD EXCHANGE STANDARD GOLD BULLION STANDARD Currency is directly exchangeable to gold coins at a fixed rate. A country guarantees a fixed exchange rate to the currency of another country that is on the gold standard. Currency can be exchanged for gold bullion at a fixed rate. EXAMPLE EXAMPLE EXAMPLE In the late 19th century, the British pound sterling was equal to $4.85 USD, S5.25 CAD or 20.43 German Marks. One British sovereign coin (equal to a £) contained 7.32g of gold. For parts of the 20th century, the US Dollar was backed by gold. Other countries, to obtain a gold exchange standard, would fix their currency to the greenback. From 1925-1931, in the UK, currency could be traded for 400 oz bars of pure gold at a fixed price. MODERN HISTORY President Roosevelt issued Executive 1933 Order 6102, which criminalized the possession of any monetary gold. All gold owned by US citizens was to be delivered to the Federal Reserve. Between 1945 and 1971, the Bretton Woods system was a form of the gold exchange standard. During this period, 1oz of gold was valued at $35. 1945 President Nixon ended the convertibility of gold to US Dollars. This began the era of FIAT CURRENCY and allowed the 1971 gold price to "float". Despite gold no longer being the basis of the modern monetary system, countries still choose to hold TRILLIONS OF DOLLARS worth of gold in their reserves. In fact, today there is MORE DEMAND for gold than ever before. AMAZING GOLD IS THE MOST MALLEABLE METAL One ounce of gold can be hammered into a single sheet 9m by 9m. (30 ft by 30 ft). GDLD FACTSI GOLD IS THE MOST DUCTILE METAL One ounce of gold can be stretched to a length of 50 miles. The resulting wire would be just five microns wide! If you were to take all the gold ever mined and stretch it into the same type of wire, it would be 280 TRILLION MILES LONG. No big deal, that's just 100X THE DISTANCE TO PLUTO. GOLD IS RESISTANT Gold is a noble metal and resists degradation by air, moisture or acidic conditions. Acids are used to dissolve most metals, but only a special mixture of acids called "aqua regia" (translating to "royal water") can dissolve gold. GOLD IS RARE Gold is so rare that the world produces nearly as much steel in one hour as the total amount of gold mined throughout history. :2010 annual steel production: 1,414,000,000 tonnes 174,100 tonnes 161,415.5 tonnes ALL TIME 174,100 TONNES OF GOLD has PER HOUR been mined since the dawn of time. That means it could all fit in a 21m (69 ft) cube. HOW WAS THAT 174,100 TONNES MINED? WHERE AND HOw IS GOLD MINED? HOW MUCH GOLD IS LEFT ON EARTH AND WHO HAS THE MOST? THE THESE ARE QUESTIONS WE WILL ANSWER IN.. GOLD SERIES PART 2: SUPPLY 101 PRESENTED BY EGOLDCORP • THANK YOU TO OUR OTHER SPONSORS WHO HELPED MAKE THIS SERIES HAPPEN: - A MIDWAY GOLD BANKS ISLAND GOLD LTD ON TRACK FOR GOLD PRODUCTION IN 2014 BRITISH COLUMBIA S NEWEST GOLD PRODUCER COMSTOCK CRUSH THE STREET GOLDSILVER.com BALMORAL MINING RESOURCES BALMORAL EXPLORES HIGH-GRADE A PRODUCING, NEVADA-BASED, GOLD GOLD IN QUEBEC, CANADA SIGN-UP AT CRUSHTHESTREET.COM FOR UNCONVENTIONAL NEWS AND AND SILVER MINING COMPANY WEALTH BUILDING IDEAS VISUAL CAPITALIST Educating a new generation of investors on resour invest and management VISUAL CAPITALIST SMOST IMPORTANT SOURCES www.visualcapitalist.com a wideld gandad hmncn oot.com/odifabomeconomkaconoffalien httpenwikipdia.orgwkiBarter

The Gold Series: The Most Sought After Metal on Earth

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Gold was one of the first metals discovered by ancient peoples and eventually gold grew to symbolize both wealth, royalty, and immortality. Gold began to be used as money by many cultures, but the Rom...

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