When did gold and silver become significant

[49er12]

I mean before it was considered priced in today’s world. Wasn’t silver and gold worth just what it was one dollar five dollar, when did it become determined such a value as listed today, 25.00 ounce or 1500.00 ounce, when did they determine this outrageous value of this metal, begin times it was just what it was wasn’t it.

 

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[smokeythecat]

When did gold and silver become significant? By the days of Noah.

 

[Red-Coat]

It’s evident that silver, and particularly gold, must have been intuitively regarded as both special and valuable long before the first silver and gold coins appeared around 700 BC. Doubtless because of their appearance, metallurgical properties, and perceived scarcity. We have evidence for use in producing jewellery and artefacts long before that and they have had a role as trading commodities for at least 6,000 years and in virtually every ancient civilisation.

The first evidence we have for a formalised value relationship between the two metals dates to around 3100 BC from the code of Menes (the founder of the first dynasty of Egypt.) The code states that “one part of gold is equal to two and one half parts of silver in value.”

It’s interesting that platinum wasn’t afforded the same status when it was discovered. When the Spanish conquistadores first encountered it, they regarded it as an inferior metal that was too difficult to melt and too hard to work. It was regarded as an unwanted impurity that compromised gold and often just thrown away. They gave it the derogatory name “platina” (meaning “little silver”). The Italian Julius Caesar Scaliger, writing in 1557, describes an unknown noble metal found between Darién (now part of Panama) and Mexico, “which no fire nor any Spanish artifice has yet been able to liquefy”. The Spanish ultimately issued an official decree forbidding the adulteration of gold with platinum impurities.

 

[ARC]

It’s evident that silver, and particularly gold, must have been intuitively regarded as both special and valuable long before the first silver and gold coins appeared around 700 BC. Doubtless because of their appearance, metallurgical properties, and perceived scarcity. We have evidence for use in producing jewellery and artefacts long before that and they have had a role as trading commodities for at least 6,000 years and in virtually every ancient civilisation.

The first evidence we have for a formalised value relationship between the two metals dates to around 3100 BC from the code of Menes (the founder of the first dynasty of Egypt.) The code states that “one part of gold is equal to two and one half parts of silver in value.”

It’s interesting that platinum wasn’t afforded the same status when it was discovered. When the Spanish conquistadores first encountered it, they regarded it as an inferior metal that was too difficult to melt and too hard to work. It was regarded as an unwanted impurity that compromised gold and often just thrown away. They gave it the derogatory name “platina” (meaning “little silver”). The Italian Julius Caesar Scaliger, writing in 1557, describes an unknown noble metal found between Darién (now part of Panama) and Mexico, “which no fire nor any Spanish artifice has yet been able to liquefy”. The Spanish ultimately issued an official decree forbidding the adulteration of gold with platinum impurities.

Did you know that the Spanish saw Platinum as "unripe gold"...

And would throw it into rivers to "ripen"... hopefully by their return at some point.

 

[malenkai]

Silver and gold were two of the seven metals of antiquity (the others being copper, tin, lead, iron, and mercury). It is interesting that mercury is rarer than silver, but I guess it is hard to make jewelry out of it. These metals, for the most part, were used due to their relatively low melting point, thus they would have had value at the beginning of the bronze age, where simple charcoal fire was the heat source.

It is also interesting to note that aluminum was more valuable than gold in the 19th century, due to the difficulty of purifying it. I wish I had a time machine, as I have plenty of pull tabs

 

[ARC]

Silver and gold were two of the seven metals of antiquity (the others being copper, tin, lead, iron, and mercury). It is interesting that mercury is rarer than silver, but I guess it is hard to make jewelry out of it. These metals, for the most part, were used due to their relatively low melting point, thus they would have had value at the beginning of the bronze age, where simple charcoal fire was the heat source.

It is also interesting to note that aluminum was more valuable than gold in the 19th century, due to the difficulty of purifying it. I wish I had a time machine, as I have plenty of pull tabs

Also... did you know that platinum is much rarer than gold.

 

[Red-Coat]

Silver and gold were two of the seven metals of antiquity (the others being copper, tin, lead, iron, and mercury). It is interesting that mercury is rarer than silver, but I guess it is hard to make jewelry out of it. These metals, for the most part, were used due to their relatively low melting point, thus they would have had value at the beginning of the bronze age, where simple charcoal fire was the heat source.

It is also interesting to note that aluminum was more valuable than gold in the 19th century, due to the difficulty of purifying it. I wish I had a time machine, as I have plenty of pull tabs

Yep. Up until the mid-1800s, the worldwide production of aluminium was no more than a few ounces per month. Napoleon III had a special set of aluminium cutlery reserved for esteemed guests at banquets, while lesser dignitaries were provided with gold utensils and, lesser ones still, with silver. He also had a baby-rattle produced in aluminium for his son. The French government proudly stored aluminium ingots alongside gold bullion in its vaults. There's an apocryphal story of a crown being made from aluminium too, but this seems to be anecdotal, with not much evidence in support.

 

[smokeythecat]

Aluminum was known for a long time but no one knew how to smelt and then use it. The first known smelting was in 1825 and it wasn't developed enough until 1889 to be able to do anything with, so essentially it became a 20th century metal!

 

[Red-Coat]

Only around 200 tonnes of aluminium was produced between 1855-1890, using the chemical method developed by Sainte-Claire Deville... although with varying degrees of purity. The Hall–Héroult smelting process developed in 1886 took off rapidly and by 1900 the worldwide annual production of aluminium was 6,800 tonnes. Still small in terms of industrial metal production though.

 

[Duckshot]

I mean before it was considered priced in today’s world. Wasn’t silver and gold worth just what it was one dollar five dollar, when did it become determined such a value as listed today, 25.00 ounce or 1500.00 ounce, when did they determine this outrageous value of this metal, begin times it was just what it was wasn’t it.

The U.S. Dollar is based on silver. According to the a Coinage Act of 1792, a U.S. Dollar is exactly 371.25 grains of pure silver.

When Woodrow Wilson sold the U.S. Bank to the Federal Reserve Bank back in 1913(iirc) and again when Nixon put the nix on gold, the "dollar" lost its connection to the metal it was based on. Paper dollars have had a declining store of value ever since.

 

[Trezurehunter]

To me, it became significant in the mid 1970's (when I was about 12 - 13) when my dad started to educate me on gold, silver and the economy. He taught me how to purchase silver instead of putting my earned money (allowance) into a passbook savings account. I then thought it was very neat, that he would take me to the coin shop to purchase silver. This motivated me to do more work for mom and dad, and even start cutting the grass and shoveling snow for the neighbors as well. If I remember correctly, silver was around $4.00 - $4.50 per ounce back then. I still have the original silver that I bought as a child. I just love the shiny shiny ! I still hold this practice today, and when I do side jobs for people, the pay I earn goes right into silver, or I'll hold the money until the price goes down to where I like it before I buy. I do know that your post meant when did it become significant to "the world", but I just thought I would share my own personal experiences and story about it.

 

[Slingshot]

Gold and silver were used during the Bronze Age as a medium of exchange, instead of outright bartering of goods. It was what we now call money, and had a set value per weight that was reflected in stamped gold and silver metal slugs of various weights that we now call coins.

Money made of paper first appeared in China, and and was issued to equal the amount of gold and silver coins held by the issuer. Paper was easier to carry than mass quantities of gold and silver coins, and could be redeemed for the actual metal from the issuer.

American paper currency was once backed by gold and silver also, the silver was withdrawn in the 1960's, and replaced with clad coins. The gold backing of the dollar was withdrawn in the Bretton Woods agreement of 1971, where the dollar was removed from the $35 an ounce peg to gold and allowed to free float being more pegged to oil than anything else.

The current price of gold, expressed in dollars reflects the devaluation of the dollar which is called inflation. Today it costs $1,780 to purchase 1 oz. of gold as compared to $35 in 1971. This shows how much inflation has happened since 1971, and how far the purchasing power of the dollar has fallen.

Welcome to the Collapse!

 

[smokeythecat]

Red-Coat, I think I found most of that original 6,800 tons...

 

[Red-Coat]

Red-Coat, I think I found most of that original 6,800 tons...

Ha ha! Are you trying to do a "Nelson Bunker Hunt" to force the price up?

 

[ARC]

Red-Coat, I think I found most of that original 6,800 tons...

I definitely have found some of the rest. heh

 

[Mackaydon]

For me, silver got very significant when, in the 60s, I could take a silver certificate bill and trade it for a non-silver certificate PLUS receive 50 cents in change.
At the time, I worked in a bank. The party didn't last long, but while it did, I was making daily runs to my silver dealer with silver certs which were in circulation.
Don.......

 

[islamoradamark]

IF we had to back our U.S. Dollar with gold at today's rate it would be close to $9000.00 an ounce.

 

[potsherd_creek]

I mean before it was considered priced in today’s world. Wasn’t silver and gold worth just what it was one dollar five dollar, when did it become determined such a value as listed today, 25.00 ounce or 1500.00 ounce, when did they determine this outrageous value of this metal, begin times it was just what it was wasn’t it.

From 1935-1967 gold was the same price every year at $35 oz.

1821 price, 19.39 oz.

1921 price, 20.67 oz.

2021-through the roof

With silver, many of us can remember getting it back in change.

 

[potsherd_creek]

In 2004 gold hit $400 an oz., I remember thinking that was crazy and who would pay that much for gold ?

 

[smokeythecat]

My mom took my silver coins to the bank to open an account for me like 50 years ago, I asked if I would get it back. She said yes. I thought I would get the same ones back. I haven't been able to collect coins ever since then. There were walkers and Bens in that little $12 box of change.