Recalling the Gold Standard

It’s sometimes hard to imagine what the world looked like when currencies were pegged to gold. Now the German Bundesbank is opening its doors to history lovers and currencyThe money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More aficionados with its “Gold – Treasures in the Bundesbank” exhibit at the MoneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More Museum in Frankfurt am Main.

Second only to the United States, the Bundesbank owns 117 billion euros worth of gold, equal to 3374 tonnes. The exhibit was organized partially because of the central bank’s desire to be more transparent with the public, but also to silence the rumours that Germany’s gold was inappropriately lent or misplaced abroad. In fact, there is even a legendRefers to the lettering, words or phrases that are engraved on coins, usually located along or around the outside edge of the coins. More surrounding Germany’s long lost gold, the Nibelung treasure, which inspired German composer Richard Wagner’s Der Ring des Nibelungen – legend that might have been resolved after an amateur archaeologist found an ancient treasure in a forest.

The exhibit presents the evolution of monetary and foreign exchangeThe Eurosystem comprises the European Central Bank and the national central banks of those countries that have adopted the euro. More policy over time and unveils some of the Germany’s oldest gold assets which include a gold bar cast in 1917 as well as the world’s “longest-lived coinA coin is a small, flat, round piece of metal alloy (or combination of metals) used primarily as legal tender. Issued by government, they are standardised in weight and composition and are produced at ‘mints’. More in the world – the ducat – which was introduced in 1284 and is still being minted to this day”.

The gold standardA monetary system in which the monetary unit of a country is based on a fixed amount of gold. More came to an end with in 1971 with American President Richard Nixon’s Bretton Woods agreement.

To read the original article [in German], click here. 

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