The gold price set a new high in August 2011 at $1,825 as investors looked for a way to hedge against the market turmoil following the Great Financial Crisis of 2008, which swept across the globe. What factors set up gold price to reach its various high points through modern history? Many historians believe this economic collapse was actually one of the most significant factors leading to the fall of Rome. Prices soared over 1000% across the ancient empire, and the Roman government attempted to sustain the empire with massive taxes to compensate. This accelerating debasement meant that the value of the currency dropped so much that Rome’s economy entered a state of extreme hyperinflation. Roughly 50 years later, around 250 AD, it was debased even further to around 70 coins per pound. Almost 200 years later, Emperor Marcus Aurelius debased the currency to a value of 50 coins per pound of gold.įront and back of an Ancient Roman Gold Coin This meant that if you wanted to trade one solid pound of gold, you would receive 40 coins. ![]() In 30 BC, Emperor Augustus set the first price of gold at 40 coins per pound (“pound” being the actual weight of gold). The story of gold as a currency throughout history is a story of its debasement.
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