The history of precious metals shows that as early as 2500 B.C. gold, silver, and copper were used in Egypt and Asia Minor to pay for goods and services

Dr. Ileana Johnson Paugh ——Bio and Archives--February 23, 2026

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“Everything has its limit--iron ore cannot be educated into gold.” – Mark Twain

People have chased gold since they realized that keeping a barter economy was not always feasible because commodity money like grain rotted, salt scattered, and cows were tough to take to the market. So, they invented money: stone money (Yap Island), salt (China and Roman Empire), ivory (Fiji), elephant hair (Africa), tobacco (Solomon Islands), brick tea money (Siberia), East Indian Money Tree (Malay Peninsula), Copper money (Alaskan Indian), to name a few.

The history of precious metals shows that as early as 2500 B.C. gold, silver, and copper were used in Egypt and Asia Minor to pay for goods and services. The kingdom of Lydia was minting coins in 700 B.C. made of electrum, a pale-yellow alloy of gold and silver.

People minted coins. Silver and gold coins had high value, portability, and payments by tale were made, counting out the right amount rather than weighing it. Even though animals did not die on the way to market, and perishable commodities did not spoil, there was always the possibility of being robbed of commodity money and coins.

Ridges were added to coins made of precious metals because humans filed the edges of coins to get gold or silver dust which they then sold as bullion or bartered for goods.

The next step was storing wealth in gold and silver bars. Bars held value over time and were easier to store as wealth. Most nations store their gold bars with the Federal Reserve Bank of New York. From this location, nations can request payments to other countries and the respective gold amounts........

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