Precious Metals Turned into Currency
Precious metals, like bronze, silver, and gold have been used as a form of currency all over the world dating back to sometime in the year 650 B.C. This is the time when the first coins were invented. Historians have yet to figure out why coins were created in the first place, but it is clear that people then used it in exchange for goods, the same way it is used today. When a metal is rare, then it is then called precious. The high demand for precious metals is also an indication of how much it is worth. Aluminium is more precious than gold, but because it is hard to extract from its ores, it is not used as a metal in coins.
During that time, the gold coin was of the highest value because gold is one of the rarest precious metals in the world. It is followed by silver and then bronze. Other than being used for currency, these precious metals are also used in making jewelry.
Precious metals in bulk are called bullion. A bullion’s value is defined by its mass and purity as compared to the face value of money. Gold bullion, silver bullion, and bronze bullion are the most common precious metals used to make coins. However, the bullion is worth more than that of coins because of its purity or actual precious metal content. The invention of the coin also contributes to the existence of coin collecting. Coin enthusiasts collect coins from all over the world from different periods in history. A coin’s value is determined by its condition and its rarity.