History of gold and silver coins

Sardis, the capital of ancient Lydia, was the main trade center connecting the eastern Asian kingdoms with the coastal Greek cities of Ionia. So it’s only natural that the first coins ever made would start here. Around 650 BC, plus or minus 10 years either way, lion head coins first appeared and were used as the first bimetallic currency system. These early coins were made of a metal called electrum, an uneven mixture of gold and silver, and sometimes had small traces of copper and/or other metals in it.

Coins weighing 4.76 grams were most often used in Lydia. They were called trites and cost 1/3 of a stater. Three of these coins weighed about 14.1 grams and were equal to one stater. A stater is about a month’s salary for a soldier. Coins the size of one stater were also minted, as well as smaller fractions: trita 1/3, the above coin, hekta 1/6, 1/12, 1/24, 1/48 and up to 1/96 stater. .

Soon the Greek cities of Ionia began to use electrum to make their own coins. However, the widespread trade in electrum coins was somewhat hindered. Due to the uneven mixture of gold and silver, it was quite difficult to determine the exact value of each coin. For this reason, a foreign trader will offer very low underbids for local electrum coins. In 570 BC. pure silver coinage was introduced in parts of Greece, making these difficulties less and less of a problem.

By 560 BC. e. the Lydians devised a process for separating gold from silver, which led to the minting of the first gold coins. Now gold coins were produced together with silver coins. Electrum coins remained a fairly popular form of currency until about 350 BC. However, gold and silver coins soon became the world’s standard currency used in trade. This helped to achieve so quickly in 547 BC, when after 13 days of siege, the Persians climbed a weakly defended part of the wall and captured the city of Sardis. Cyrus was impressed by the gold coins found in the Lydian kingdom and decided to make these gold coins for himself. The Persians learned to mint gold coins and began to use them for trade.

The Greeks liked the use of silver coins as currency and helped make silver coins the accepted world currency standard. Unlike the Greeks, the Persians favored gold coins over silver and helped make gold coins the world’s standard currency. Between them, gold and silver coins become the money excluded in the entire known world. Since then, gold and silver coins have been the only real form of money to this day.

At this point, you might say, what about the paper dollars, or yen, or euros that I have in my pocket? Around 100 AD, the Chinese were the first to invent paper. Sometime in the early 7th century, they also became the first to invent paper money. This paper money was called volatile. These first banknotes ensured that they could be exchanged for coins at any time. Paper was not real money, real money was the coin that could be exchanged for it. The paper was just a form of promissory note, a promise to trade for real money.

In 1292, when Marco Polo returned from his trip to China and told the people about this paper money they used there, the people of Europe did not believe it. It seems that the Chinese used paper for money as a joke. Paper money would appear in Europe only in the 1600s. In the mid-1600s, paper money began to appear across Europe, some accepted, some not. Goldsmith notes printed by the Bank of England, founded in 1694, were again a type of promissory note. These notes were printed as a pledge of English goldsmiths for deposits in accounts. Clause “(I) promise to pay bearer on demand the sum of — pounds” in gold. Again, paper was not money, gold for which money could be exchanged.

Article 1, Section 8, Clause 5 of the United States Constitution states that Congress has the power to “coin money, regulate the value thereof, and foreign coin, and make standards of weights and measures.”

Article 1, Section 10, Clause 1 of the United States Constitution states that “No State shall . . . issue in payment of debts any thing but gold and silver coin.”

It is clear from these 2 sections of the United States Constitution that our founders did not want paper money as a form of tender in this country, and for good reason. They knew that gold and silver coins had and held value, while paper always caused problems. Many of our founders see the problems that arose in Europe with their attempts to use paper money, as well as the early attempts of the colonies to use paper money.

In 1836, the first banknotes were printed with more than 30,000 designs and colors that were easily counterfeited, along with bank failures, became almost as much poison to most people. In 1861, Congress authorized the United States Treasury to issue paper money for the first time in the form of interest-free Treasury bills called demand notes. In 1862, these notes were replaced by US notes. They are usually called Greenbacks. In 1865, gold certificates were issued. In 1868, national bank notes backed by US government securities were printed. In 1878, silver certificates were printed in exchange for silver dollars. In 1913, the Federal Reserve Act was passed, then everything changed.

Up until this point, printed paper money could be exchanged for gold or silver coins – real money. There may also be Federal Reserve notes for a while. From 1913 to 1963, the Federal Reserve note went from being a bill that could be exchanged for real money, to a piece of paper, unbacked, to a debt instrument. Federal Reserve notes no longer say that they can be exchanged for gold or silver, but simply say, “This note is legal tender for all public and private debts.” In fact, the words legal tender are no longer on the bill.

Today’s Federal Reserve note is what is called fiat currency. A fiat currency has no intrinsic value or any guarantee that it can be converted into gold or another currency. A fiat currency is nothing more than an order from a government (fiat) that must accept it as a means of payment without giving anything back. The founders of the United States knew this would happen when paper money became accepted. That’s why they made gold and silver coins the only legal form of money in our Constitution.

Paper money has never been and never will be real money. Gold and silver coins were and still are the only real money. You hear gold and silver going up in value, but it’s actually paper money that’s going down in value, meaning it takes more paper to buy the same amount of gold. When quarters were still made of silver, they could be used to buy a loaf of bread. Today, that same silver quarter would still buy you a loaf of bread.

Gold and silver coins are the safest place to invest your paper dollars. It’s the one thing you can invest in that will never wear out. Stocks and bonds can collapse, paper money can become worthless, banks can fail, but throughout history gold and silver have held value. It is well known that gold coins are the safest and risk-free place to invest your savings. As the news informs us of a weak economy and we see the prices of everything skyrocketing, we need to find a safe place to put our hard-earned Federal Reserve notes. At the rate the dollar is declining, if you can live on $20,000.00 a year today, in about 10 years you will need over $50,000.00 a year to live the same lifestyle. The same $20,000.00 in gold coins 10 years from now will last more than a year.

Paper currencies do not provide you with any protection in your investment, they only lose more and more value every year. Nothing compensates for a fall in the value of currencies like gold coins. When you keep gold and silver bullion coins like American Eagles, you are building yourself a fortress of investment security.

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