The History of Gold: From Then to Now

Gold, since its discovery, has fascinated mankind, particularly due to its brilliant golden color.

This metal, with its unique properties, has been highly coveted throughout the centuries, like a priceless treasure.

The origin of gold
The word "gold" comes from the Latin "Aurum", and has the symbol "Au". Gold is yellow/golden in color, and is what we call a precious metal. It is called this because it is malleable, flexible, and does not tarnish over time. It is said to be noble because it is almost unalterable.

Scientific research has been conducted to determine the origin of gold. There are two hypotheses regarding its origin.
According to researchers in nuclear physics and geology, its formation dates back several billion years before its discovery and exploitation by humans. This means that gold predates the formation of the solar system, and even the Earth. This would be due either to the explosion of a supernova or to a collision or fusion of two neutron stars. A numerical simulation carried out in 2011 demonstrates, through the abundance of gold nuclei, that the theory of the fusion of two neutron stars seems to be the most likely.

In 2016, while studying a dwarf galaxy called Reticule II, scientists agreed on this same hypothesis. However, the majority of gold on Earth is concentrated in its core. It accumulates where hot fluids from the mantle circulate. Some fragments of gold are, however, found within the Earth's crust.

According to studies, this could be due to the migration of hot materials to the surface or even to an asteroid rain that occurred four billion years ago. Gold is therefore rare on the Earth's crust and unevenly distributed. If humans were able to find gold long before mining, it was thanks to erosion. Erosion degrades large gold nuggets buried in the ground and carries the flakes into the riverbeds.
This is how humans saw fabulous golden stones glittering in the water.

The Discovery of this Golden Mineral
Man discovered gold in prehistoric times. In fact, around 7,000 years ago, man began to use this metal to shape objects. The first tangible evidence of its usegold dates back to between 4600 and 4200 years BC. This discovery took place in the Varna Necropolis, near the Black Sea, in eastern Bulgaria. Objects were found thereremarkably well crafted as jewelry and adornments (bracelets, belts, etc.) or even objects intended for worship such as scepters.

The Egyptians also quickly used gold to make jewelry, offerings, religious objects, and even their famous sarcophagi.

Over the years, gold became much more than a metal used to make goldsmith pieces; it became a currency. This new use of gold was made by the Phoenicians as early as 950 BC to develop trade around the Mediterranean basin. But in 600 BC, King Alyattès changed the way transactions were conducted by giving gold a fixed value in wheat. His son

Croesus would go further in this approach. He would also give a value to silver in order to have a correspondence between the two metals. He would therefore have silver coins made, similar to the gold Croesus. We thus arrive at the era of Bimetallism: one gold coin is worth ten silver coins. The civilizations that would follow, such as the Persians or the Greeks, would maintain the price of gold in relation to silver.

Gold from the Middle Ages to the New World
At this time, gold deposits were rare in Europe, so silver was preferred as a form of currency. Gold was used as a storage medium because of its rarity and its higher value than silver. Gradually, gold was reintroduced into the kingdoms thanks to the Crusades, but also thanks to increased trade across European territories.

From the 14th to the 15th century, the value of gold continued to increase. The production of gold coins decreased by 80% because the discovery of new gold mines was rare. Gold coins are therefore becoming rarer on the market, and their price is soaring again.

In 1492, America was discovered. The great powers of the time saw this as an opportunity to import new raw materials, as well as gold to their kingdoms. The first tribe to bear the brunt of this greed was the Aztecs. Spain was desperate to plunder the gold that the indigenous peoples had amassed.

Herman Cortés led the expedition. He sealed the fate of these tribes. In just two years, he conquered an immense territory, stretching from the southern United States, through Mexico, to Central America. He defeated the indigenous peoples and plundered the Aztec treasure. Spain, as well as Portugal, France, and England, grew rich thanks to the mines formerly exploited by the Aztecs.

The Gold Rush
In 1848, three centuries later, more than 300,000 explorers from around the world set out in search of gold on American soil. Following the discovery of the first nuggets on January 22, 1848, by James Marshall in California, thousands of explorers tried their luck in the hope of striking it rich. Unfortunately, this quest would not last more than a decade.

Using picks, shovels, and pans, they would dig through the Californian subsoil, or stay along the rivers hoping to find the famous, coveted vein of gold. Most would only come across nuggets or flakes of gold. This very short period would be called the Gold Rush or California Gold Rush in English.

This period would later be described as a myth that made young and old dream.
Despite everything, the coveted gold veins were discovered and exploited. Some pioneers of this quest became considerably rich. While others found only death or poverty. Many of them left poorer than when they arrived.

Gold Today
Today, gold still arouses just as much interest. Its reserves, however, do not appear to beexhausted. In China, 455 tons of gold were mined in 2016, representing 13% of world production.Today, about half of the gold mined is used to make jewelry. The diversity in quantity and quality on themarket makes these products more accessible to all populations.
Gold is also being used for a new product category: electronics.

Indeed, some components in our smartphones, tablets, and computers are made of gold.

This category represents approximately 10% of global annual production. The rest of the production is held by banks or private investors. France, in particular, has 2,436 tons of gold, placing it fourth in the world in terms of national stocks behind the United States (8,133 tons), Germany (3,378 tons), and Italy (2,452 tons). Today, gold is even listed on the stock market, and its price has been steadily increasing for twenty years, rising from 303 euros in 2000 to 1,553 euros in 2020.

Indeed, during the 2008 economic crisis, the price of gold remained strong and continued to rise, while stock market values ​​collapsed between 2007 and 2012.

Furthermore, during the coronavirus crisis, many investors saw an economic crisis looming on the horizon. Many of them therefore turned to buying gold to diversify their investments, leading to an increase in the price of gold.

Gold: A Never-Ending Story
Since its discovery, gold has fascinated mankind. This passion for this precious metal has persisted through the centuries, until today. However, its use remains the same. It is still made into jewelry and religious objects, and it is stored in large quantities in our reserves to enrich ourselves and cope with economic collapses. Modern techniques for extracting gold make its marketing easier and more accessible.

Nevertheless, the sharp rise in the price of gold is beginning to reverse this trend. Will gold ownership once again be reserved for an elite?
Will you be one of them? To start investing in gold, come and discover our gold bars and coins, for sale on our website.

Sources:
http://www.24-carats.fr/histoire.html
https://www.loretlargent.info/histoire-cours-or/