I hope the information will give an interesting answer as to where gold was first traded. According to one source,
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| gold trade history |
what is the history of gold trade?
The trade of gold in West Africa goes back to ancient times, with one of the earliest examples being the voyage of the Carthaginian explorer Hanno in the 5th century BC. However, another source claims that China was one of the first countries to legalize gold as a form of money.
It seems that different regions may have started trading in gold at different times depending on their access to the precious metal and their economic and political systems.
How was gold used in ancient times?
Gold was used for various purposes in ancient times, such as jewellery, coins, sculpture, vessels, decoration, medicine and symbolism. Gold was often valued for its beauty, durability, rarity and association with the divine. Here are some examples of how different ancient cultures used gold,
The Egyptians used gold for jewellery, coins and other decorative items. They also believed that gold had medicinal properties and that it could help the pharaohs in their journey to the afterlife.
The Sumerians, Minoans, Mycenaeans and other ancient civilizations of the Mediterranean and Near East also used gold for jewellery, coins and art. They developed various techniques to work with gold, such as filigree, granulation, embossing and inlaying.
The Kingdom of Lydia in western Turkey was the first known civilization to use gold as a form of currency. They minted the first pure gold coins with stamped images around the 6th century BCE23.
The Greeks and Romans used gold for coinage, jewellery and sculpture. They also admired gold for its symbolic value and as a sign of immortality and power. Gold was often used as a setting for precious and semi-precious gemstones.
The Chavin and Nazca civilizations of South America used gold for jewellery and art. They also mastered the technique of gold casting and created intricate designs.
The Chinese used gold for coinage, jewellery and art. They also considered gold as a symbol of purity and perfection. Gold was often mixed with other metals to create different colours and effects.
How was gold extracted in ancient times?
There were different methods of gold extraction in ancient times, depending on the type and location of the ore. Some of the common methods were,
Placer mining: This involved extracting gold from river sands and gravels by washing, panning or sluicing. This was the earliest and simplest method of gold extraction, used by ancient Egyptians, Sumerians, Lydians and other civilizations.
Smelting: This involved heating the ore in a furnace or crucible to separate the gold from other metals or impurities. This method required high temperatures and fuel, and was more advanced than placer mining. This was used by ancient Romans, Greeks, Persians and others.
Cyanidation: This involved dissolving the gold in a solution of cyanide, which forms a complex ion with gold. The gold can then be recovered from the solution by various methods, such as adsorption on activated carbon or precipitation with zinc. This method was developed in the late 19th century and is still widely used today.
why was the gold trade important
The gold trade was important for many reasons throughout history. Gold was a valuable and rare metal that could be used for jewelry, coins, art, and other purposes. Gold also had symbolic and religious significance in many cultures. Here are some examples of how the gold trade influenced different regions and periods,
In ancient West Africa, gold was mined by the Soninke people of the Ghana Empire, who traded it with the Berbers and Arabs across the Sahara Desert. The gold trade made Ghana wealthy and powerful, and also attracted the attention of other kingdoms and invaders.
In medieval Europe, gold coins were minted by various kingdoms and empires, such as the Byzantine solidus, the Frankish denier, and the Islamic dinar. These coins were used to facilitate trade, pay taxes, and display prestige. The demand for gold coins increased the trans-Saharan and Indian Ocean trade networks, where gold was exchanged for salt, spices, textiles, and other goods.
In modern times, gold has been used as a standard for monetary systems, such as the classical gold standard (1870s-1914) and the Bretton Woods system (1944-1971). These systems fixed the value of currencies to a certain amount of gold, which was supposed to ensure stability and facilitate international trade. However, these systems also faced challenges and crises, such as wars, inflation, and devaluation.
Today, gold is still traded as a commodity and an investment asset. Gold prices are determined by supply and demand factors, such as mining production, central bank reserves, jewelry demand, industrial use, and market sentiment. Gold is also influenced by geopolitical events, economic conditions, and currency fluctuations. Gold trading can be done through various platforms, such as futures contracts, exchange-traded funds (ETFs), physical bullion, or online platforms.