Introduction
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The Millenium in Gold

The evolution of gold over the last 1000 years is almost the story of the millennium itself. It embraces the establishment of city and nation states, whose rulers controlled the minting of gold coins in their image as a symbol of power, the growth of great trading centres like Venice, Amsterdam and London, and the opening up of new frontiers in Africa, Brazil, Siberia, California, Australia and Canada in pursuit of fresh sources.

In the beginning, the Crusades of the 12th and 13th centuries, bringing pilgrims and traders in their wake, nourished the interchange of gold, which Europe lacked, and silver, which the east always sought. The Mediterranean world was the hub. By 1300, Venice was the gold market, with a daily price fixing and mint making gold ducats that were as universally accepted as the British sovereign 600 years later. Camel caravans brought African gold across the Sahara, new gold mines opened in Hungary. European mints coined up to 170,000 ounces annually by 1350, a record until gold from the Americas arrived 200 years later.

Purity/Prices

For consistency, the quantity and price of gold are quoted in troy ounces fine although, until 1919, gold was usually quoted as "standard" gold of 916 fine. The most consistent historical price is the old pound sterling of pounds (£), shillings (s.) and pence (d.) - ie £4.4s.11½d. which was the price for fine gold, or £3.17s10½d. for "standard" from 1717-1931. But a decimalised price, ie £4.25 - is also listed, together with US dollar prices after 1800.

For conciseness, from the 19th century, a million ounces is shown as m.oz.

While the Renaissance heralded the era of master goldsmiths, like Benvenuto Cellini, that profession was already long established and regulated, and the Worshipful Company of Goldsmiths in London received its royal charter in 1327. And in England too, came the "accidental" gold standard of 1717, created by a slight over-valuation of gold against silver, establishing gold as the premier coinage and setting a gold price which was stable, except suring the Napoleonic wars, until 1931. After 1850, the vast production from the Californian and Australian gold rushes enabled other nations to join the gold standard.

The three champions of the millennium are Venice, London and India: Venice as the premier market until eclipsed by London in the 17th century, and India for its stamina as a limitless consumer for over 300 years.

Sources / Bibliography