Gold coins are circular coins that are partially or wholly made up of gold. The use of coins in business was common in older times and its exchange gave birth to the era of coinage. However, coinage came to an end in the twentieth century after the great depression. The end of coinage put a full stop to the trade of gold coins. Nowadays coins are not only collected by history enthusiasts but also used as bullion coins. Bullion coins are those coins, which are used for investing in gold without considering their nominal value.
History
Metals like gold and silver have been an essential part of trade and their use in business dates back to the ancient civilizations of Egypt and the present Iraq. Fernand Braudel, the famous French historian said that gold and silver were the lifeblood of Mediterranean business deals in 2nd millennium BC. However, the first coins to be produced were in the 6th millennium BC in the present Western Turkey. These coins bore faces of bull or lion on one side of the coin and a seal or punch mark on the opposite side. This gave birth to the coinage era that kept on evolving in different cultures and civilizations. The use of gold coins remained popular until the Great Depression in 1933, when the American government took over all the gold coins to restore the national wealth. This put an end to coinage era in all parts of the world.
Significance
The reason why gold is considered a good way to exchange value is because it can be broken down into smaller portions without affecting its value. Generally gold coins are preferred to silver coins because of they have a higher value and lesser weight, making it easy to transport from one place to one. Molten gold is used to form ingots, which are purchased for their high value. Unlike other m