Gold coins are made of gold! Lets talk a little about the gold value, and get the picture why is gold so important.
Gold is portable and divisible His weight easily determine the value of the object;
Gold is indestructible;
Gold is easily recognizable and acceptable form of payment ;
The fluidity of the market is a historical fact , but the gold can maintain its value over time. On the other hand many currencies (including the U.S. dollar) and industrial raw materials have generally lost value. This is because gold is often bought to protect from the risks of inflation and the fluctuation of currencies and also because many investors worldwide see gold as safe and important part of their investments. 'gold has maintained its value despite the U.S. rate of inflation over the past 200 years.
In other words, the gold value - has remained fairly stable over time. For example, a clothing in 16th century England at the time of King Henry VIII cost the equivalent of gold price which we will now pay for a modern dress.
Wednesday, May 21, 2008
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