The History of Precious Metal Pricing

Precious metal usage goes way back in terms of history. Precious metal is recorded as currency in the Holy Bible. Genesis 23:16 shows that Abraham ordered precious metal to be measured before being used. There are many other instances of the Bible describing precious metal coins. The shekel and drachma are two older currencies that were based around precious metal supplies. The value of a currency was once determined by the backing of precious metals. Gold and silver were typically used for that purpose over time. The histor of precious metal pricing also shows that these metals were once very valuable. See how the value has influenced history and what the future may have in store as well.

The U.S. dollar was once fixed to what was known as the gold standard. The Gold standard mandated that the currency must be matched by existing gold reserves. That would guarantee the value of the U.S. dollar in the event of a market collapse. The Gold Standard would eventually be removed by Richard Nixon during the 1970’s. Since then the U.S. dollar has been kept as a fiat currency. Some experts think that the fiat currency is weaker without the gold standard in place. Some scholars wish that the Gold Standard was put back in to place.

Note that some currencies tend to fluctuate quite rapidly over time. Some economists think that precious metal pricing could be amiss. Worldwide currency use has changed quite rapidly over time as well. That has put the markets at a disadvantage for many reasons. Economists hope that the value of the precious metal pricing is put to a standard. That could curb excessive use and unusual activity in the market today. That could be a change that is derived from the olden times for precious metal.