The Lure of Bullion

Gold has always had a value to human beings well before it was money. The “Gold of Troy” treasure hoard was found in Turkey and dated back to 2456–2000 BC. It was highly valued, owned by the powerful and made into objects of worship. But it had not yet become money, although as far back as 3100 BC there is evidence of a gold/silver value ratio in the code of Menes, the founder of the first Egyptian dynasty. It stated that one part of gold is equal to two and one half parts of silver in value. The first use of gold as money occurred around 635 BC, when Lydian merchants produced the first coins. These were simply lumps of a mixture of gold and silver and helped Lydians in their wide trading activities. Croesus was the King of Lydia from 570–546 BC and amassed an enormous hoard of gold. Even today people speak of the wealthy being as “rich as Croesus.”

Because of that revolutionary act...