Gold is one of the most prized substances on the Earth. It was used for currency for most of the history of Western civilization. Middle Eastern, African, Asian and American societies used it as currency at various times, as well. This metal is incredibly durable, which made it a natural choice for making coins. It is also one of the few metals that never tarnishes or corrodes, which made it even more useful as a currency. There are some myths about using this or any other precious metal as a currency that are bandied about, however.

The incredible prices that gold trades for at present are precisely a result of the fact that it does not back currency. When it was used as a currency, or as a backing for it, the price of an ounce of the metal was fixed. This should be obvious enough: If a dollar were backed by an ounce of gold then an ounce of gold could not be worth more than a dollar. When bullion ownership was legalized in the US after the gold standard was abolished for good, investors went into the metal with a great deal of excitement. Today, there are few better investments.

Gold as a currency in and of itself did leave something to be desired. In an economy where all currency is precious metal, any of that metal that is destroyed or lost is simply gone. That wealth cannot be recovered. Paper currency can be replaced as it wears out. Investors in coins know that keeping one in good condition takes real effort. When precious metal coins were traded for goods and services, those coins were usually not in mint condition for long. Today, the loss of so many means that a good deal of tangible history has been left behind.

The fact that the liberation of gold as a backing for currency has made it such a hot investor’s product has not escaped everyday people. Today, most anyone can afford to buy a bit of precious metal and keep it as their own hedge against inflation. It can easily be stored in a safe deposit box, a home safe or even in a fireproof box. If there ever is a need to get the wealth out of it, the fact that it has been currency for thousands of years is certainly a comfort to anyone who has it!