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Importance Of Gold In Economic Development

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Importance of Gold and its Role in Economic Development Historical significance of Gold: Gold has considerably shaped the history of mankind, his definition of economics and his overall perception of life about making investment decisions. In the past world was less capitalism oriented but capitalist markets provided the real value of wealth and its possession. The importance of Gold was firstly identified by the kings of Egypt. Gold was an important part of their culture and traditions and people used to wear Gold and perform trade in terms of Gold, it was treated as the most important and precious asset at that time. The Egyptians at about 3000 BC were the first to include Gold and Silver in their monetary system. The Gold was used to be collected from Nubian mines and stored in the supremacy of Egyptian’s rulers. Gold was used in the barter system for purchasing large Assets but then Egyptians and other countries observed that they have to use any other currency if they want to purchase small commodities such as food and shelter. Upsurge of Gold as an International Standard During the year 1880s to 1914, the importance of Gold as an international standard of payment rose when it was accepted internationally as a form of payment. All currencies were valued to a fixed amount of Gold which was held in reserves. The economic systems were developed in such a way that Governments have to repay the amount of the printed currency in gold when presented. This was to ensure that

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