The Most Perfect Measure of Value

Over the centuries, monetary systems have evolved continuously, adapting to the needs and possibilities of their time. But one thing has remained the same: the power of gold.

“Historically, many different goods have been used as media: tobacco in colonial Virginia, sugar in the West Indies, salt in Abyssinia, cattle in ancient Greece, nails in Scotland,” writes economist Murray N. Rothbard in his book “What Has Government Done to Our Money?” He goes on to emphasise that “[t]hrough the centuries, two commodities, gold and silver, have emerged as money in the free competition of the market”.

Gold, however, came to be regarded as the more valuable and more perfect currency. Although it is a metal, it does not rust or lose its lustre. After thousands of years, an ingot remains unchanged. Thanks to its high atomic density (19.9 g/cm³), it is heavy yet occupies relatively little space. Its deposits are rare but can be found on all continents in sufficient quantities to allow its widespread use. According to World Gold Council estimates, between antiquity and 2025, humankind has extracted 216,265 tonnes of gold, about 97 per cent of which remains in circulation or reserves.