As the saying goes, "Money makes the world go round." This sentiment has held true since the dawn of civilization, as money has continually evolved to meet the needs of human societies. From simple commodities used as a medium of exchange to coins crafted from precious metals like gold and silver, the concept of money has adapted over time. 

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In its earliest forms, trade was conducted based on mutually agreed values, without a universal standard. Among the various forms of currency, gold and silver emerged as the most reliable and widely accepted mediums of exchange. The first known coin in history, the Lydian stater, was minted in the 7th century BCE in the ancient empire of Lydia, located in what is now modern-day Turkey. ​This coin marked a turning point in the development of standardized currency, laying the groundwork for the monetary systems we recognize today.

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Around 9th century, the first banknotes were introduced in China during the Song Dynasty, representing another leap in the evolution of money.  As human civilization progressed, so too did monetary systems, which eventually transitioned to the metallic standards, where currencies were backed by gold or silver. By the 16th century, the influx of silver from the Americas, particularly from the Spanish colonies, led to the adoption of the silver standard, which dominated global trade up to the 19th century. ​During this time, the gold standard gained prominence as a more stable and universally accepted monetary system.

 

It was not until the 20th century that the world transitioned to fiat currency, where money was no longer backed by physical commodities like gold or silver. Instead, its value depended on public trust and the guarantees provided by the issuing government. This shift marked a new chapter in the history of money, reflecting the evolving needs of a globalized and interconnected world.

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Why Are Gold and Silver So Precious?

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Among all metals, gold and silver have stood out for centuries. But what makes them so special?

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Rarity: While they are rare, gold and silver can still be found in nature, making them valuable but not impossible to acquire.
Malleability: Their unique metallic properties allow them to be easily shaped into coins, jewelry, or other forms, making them practical for various uses.
Cultural Value: Over time, humans have universally accepted gold and silver as symbols of wealth and value. This perception has existed since ancient times, solidifying their status as precious metals.

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Where did the word Money came from?

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The word "money" traces its origins to ancient Rome. It derives from the Latin word "moneta".

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Sources & Further Reading:

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1. history.com, infographic The Story of Money

2. worldhistory.org, Everett Millman Article The Importance of the Lydian Stater as the World's First Coin

3. citeco.fr, Article The First Banknotes or Paper Money

4. ig.com, Article Why is gold valuable?

5. mint.ca, Article What Makes it Precious: Silver

6. Wikipedia, Article Money

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