Some golden moments that make up its history are briefly recorded below:

• Around c.3600 BC – Gold was smelted by the Egyptians using blowpipes.
• 2600 BC – ancient Mesopotamian goldsmith crafted the first few pieces of gold jewelry.
• Between 1200 and 1500 BC, a new casting technique was developed; the so called lost-wax technique was used in the jewelry process to improve the hardness of gold, allowing color variations.
• 1223 BC – the gold creation of Tutankhamun’s funeral mask.
• 950 BC – the building of King Solomon’s gold temple.
• 600 BC – gold was first used in dentistry due to its bio-compatibility, corrosive resistance and malleability.
• 564 BC – the first mint for a standardized gold currency by King Croesus.
• In 300, the Lycurgus Cup was colored with gold nanoparticles by the Romans for a bright red glow.
• In 1300, the first gold hallmarking system at London’s Goldsmith Hall.
• In 1370, the occurrence of famine of the Great Bullion.
• In 1422, Venice Mint’s listed a record minting of small gold coins.
• In 1511, King Ferdinand’s famous gold expeditions.
• In 1717, Britain established the standard for pure gold.
• In1803, gold electroplating commenced.
• In 1848, occurrence of Gold Rush in California.
• In 1885, occurrence of Gold Rush in South Africa and the creation of Hen Egg or Easter Egg, especially for Tsar Alexander III.
• Between 1870 and 1900, gold was adopted as the standard currency.
• In 1925, gold was re-adopted as the market standard after WWI.
• In 1933, President Roosevelt suspended gold from private holdings.
• In 1939, gold market closed due to WWII.
• In 1961, gold was used in bonding wire and construction of space shuttle.
• In 1967, the Krugerrand from South Africa was introduced.
• In 1971, floating exchange rates commenced.
• In 1985, Auranofin was developed using gold to treat arthritis.
• In 1999, 15 central banks from Europe agreed on gold reserves.
• In 2001, stent that is gold-plated was successful in heart surgery.
• In 2003, China developed its first 18k gold jewelry.
• In 2004, SPDR launched its gold shares.
• In 2009, most central banks reverted to be net gold purchasers.
• In 2010, gold prices hit record highs spurred by fears of inflation and impending financial crises.

Gold has shown only progress throughout the centuries with its unrivaled properties although it is an inert material. It is nothing until it is discovered, mined and refined in man’s hands. Hence, the history of gold reflects the history of civilization.

Americans and debts

The one thing that credit cards have done is thrown Americans and the country itself into debts which has in turn caused negative saving rates. The last three decades have been the worst as they have been paying for their living expenses using credit cards. On the other hand, the credit cards have robbed them of their trading stocks and assets which have in turn disintegrated lots of wealth within a very short period of time.
 
Crazy spending

Crazy spending triggered by the availability of credit cards has suffocated institutions and the nation as a whole growing the deficits and debt to humongous proportions. New and fresh government projects are coming up in spite of the fact that there is not enough money to even cater for those already tabled.
With all the debts, the question still lingers, who will pay all the bills? This will not only affect the current generation but also the generations to come as they will inherit national and personal debts that already exist in the world. The worst is that the debts are growing by the day adding to liabilities of millions of dollars. The government’s attempt to match monetary irresponsibility through the unprecedented rate of printing money has been futile and will in turn increase the poor state.

Trusted medium of exchange

Gold remains to be the only trusted medium of exchange that is worth owning. This commodity will not only benefit but will also protect wealth even during dollar depreciation and hyperinflation that may stir financial markets and American wealth in general. Gold is a safe and solid store of value in all ways. Instead of wasting credit card funds, one can consider buying gold coins. By doing so, the future will be more secure.

There are exceptions where the dollar and gold have behaved in the same manner in that they were both weak and in the same direction but because of many unrelated factors. Also, there are those periods when the two have gained value at the same time although it is very rare to experience this kind of a phenomenon.
Gold – real money

The reason as to why gold is the counterweight to the dollar is that it has been the monetary system of the world for centuries. The world developed into paper currency back in 20th century with the US emerging tops in military power and economy; hence the regarding of the dollar as safe for institutions and investors all over the world.

Amazing track record

Gold has set a remarkable track record as a trusted medium of exchange and a value store. It also came back into its safe mode when fiscal policies and monetary policies eroded the dollar value, especially during the weak times of the dollar. There are several episodes in which gold has proven to be a real store of value and a medium of exchange.

The other reason making gold a counterweight is that it is normally priced in dollars and more so, US dollars. This means that the moment dollar value goes down, gold prices rise and when dollar value increases, gold price is likely to go down. However, this holds a small market proportion with the rest relying on the selling and buying of gold.

It is true that dollar value drops can affect an entire country as well as have a negative effect on the investor whether an official, institution or individual, provided he holds a dollar asset. Dollar declines may also bring lots of gains to the very same holders making them much wealthier.

When looking into buying gold coins, it helps to make a point of understanding the markets, the pros and cons and everything that appertains to to it.

Gold is as important to an individual as to the US portfolio as the demand for this shiny metal was only 11% in the US between 2004 and 2008 whereas the remaining 89% demand was not accounted for to appreciate the metal’s true worth.

There is a clear global demand for gold in different forms; jewelry made up 68% demand in the last 5 years with major players like China, Middle East and Turkey which comprise 50% demand and US, India and Europe commanded 20% of gold in the form of coins and bars while Japan picked up the balance by using the metal in its industry.

You will get a myopic view of gold’s worth if you are focused on the demand of gold as related to the United States alone. Other big players such as top countries contribute a major role in pricing gold on a worldwide platform that influences global inflation, currency supply and demand as well as the global velocity of money, which in turn direct the future worth of gold.
Money versus Gold

It has been proven that gold remains stable and not very affected by bull or bear runs in the stock market; hence the varying financial assets of the world seem to have little impact on the shiny metal.
The important factor that impacts gold prices in the short or long term is the dollar. Hence, when gold prices dip, the dollar increases in strength and vice-versa. Gold has what is termed a negative correlation to the dollar. This shiny metal can outperform bond markets, stock markets and real estate valuations as observed since the 2007 economic crisis. Gold prices have been climbing up every year since.

On the other hand, money supply is increased when the economy booms to keep inflation away or when it is necessary to stimulate the ailing economy. But this is precisely the issue that could not be resolved amicably as reflected in the 2007 financial crisis when the depth of inflation could not be pinpointed with all the monetary policies set in place. Higher inflation still sprouted.
Reality Prices

In reality, gold prices are usually on the increase whether there is any increase in the demand for money or not. When the economy is booming, more wealth leads to more demand for gold products while gold is considered an asset that hedges against inflation in an economic recession which devalues paper currencies. Gold is more than an investment; it is an asset because it is a physical possession regardless of form as gold value has never touched zero.
Market conditions may change over time; it is important to appreciate the relationship between gold and currency set in the ever changing economic situations. A focus on the entirety of gold demand will lead to a better decision on the right time to purchase some of the shiny metal.