From prehistoric eras onward, gold has steadily grown in usefulness and importance to people. Its long story across many centuries is filled with remarkable details and surprising discoveries. The following are several historical highlights from gold’s enduring record.
The Beginnings
Gold was probably the earliest metal shaped and used by prehistoric people. Archaeologists have dated ornamental pieces found in Bulgaria to 4000 B.C., placing part of gold’s early human history alongside the Stone Age.
The Most Expensive
Among gold coins, the 1933 Double Eagle holds the distinction of being the world’s costliest. At a New York City Sotheby’s sale in 2002, it brought $7.59 million.
Gold as a Doorstep
In 1799, Conrad Reed made what is recorded as the first documented U.S. gold discovery: a 17-pound rock found on his father’s North Carolina farm. The family treated it as a doorstep until bringing it to a local jeweler. That jeweler paid $3.50—less than one-thousandth of its actual worth in gold bullion. Reed understood the lesson and went on to establish the nation’s first commercial gold mine, the Reed Gold Mine.
The Influence of Gold on CurrencyAt publication,
Although the dollar is not backed by gold anymore, gold has continued to exert major influence over currency. In 1934, President Franklin Roosevelt raised gold’s price from $20.67 to $35. Soon afterward, the U.S. dollar’s value declined by 40 percent. In 1971, President Nixon ended the dollar’s remaining connection to a gold standard by closing the gold window on his own authority. Once that window closed, foreign central banks could no longer trade their dollars for gold.
Never to Be Mined
The oceans contain more than 10 billion tons of gold beneath them—over 25 tons in every cubic mile. Even that figure is modest beside the gold said to be in space. In 1999, the NEAR spacecraft reported that the asteroid Eros held more gold than all gold mined on Earth. Future alternative exploration could become practical, but the article noted that prices would need to rise substantially before that possibility merited consideration.
Soft Yet Strong
Gold ranks among the world’s most ductile and malleable metals. Pure gold can be formed by hand. One ounce can be drawn into wire 50 miles in length, with a diameter one-tenth that of a human-hair strand. That same ounce may also be beaten into a transparent sheet only five-millionths of an inch thick.
The Resiliency of GoldAt publication,
Because gold is nearly indestructible and retains value, almost all of it is recycled. Consequently, more than 85 percent of every ounce of gold ever mined remains in use today.
Major Gold Players
The original article reported that South Africa produced two-thirds of the world’s gold, while India was its largest gold consumer. Within the United States, Nevada and South Dakota were identified as the principal gold-producing states. The article also stated that the United States held the world’s largest gold reserve. Much of that reserve was kept at Fort Knox, although it was not the sole storage site. Additional reserves were held at the Denver and West Point Mints and at the New York Central Bank.
The Biggest Nugget
The largest gold nugget still in existence is the “Hand of Faith.” Found in Australia in 1980, it is exhibited in Las Vegas at the Golden Nugget Casino—an especially fitting location.
When this article was originally published, Atlanta Gold and Coin stated that it helped people make informed choices when buying or selling gold, silver, platinum, rare coins, and bullion. At that time, readers were invited to call 404-236-9744 for a free no-obligation appraisal.
