The HistoryOfGold
National Mining Association
101 Constitution Avenue, NW, Suite 500 EastWashington, DC 20001

•••
•

Gold
The chemical symbol for gold is Au.
Gold’s atomic number is 79 and its atomic weightis 196.967.
Gold melts at 1064.43° Centigrade
The specific gravity of gold is 19.3, meaning gold
weighs 19.3 times more than an equal volume ofwater.
··········

WEIGHT EQUIVALENTS
1 troy ounce=
1,097 ordinary ounces
1 troy ounce=480 grains
1 troy ounce=
31.1 grams
1000 troy ounces=31.3 kilograms
1 gram=.03215 troy ounces
1 kilogram=
32.15 troy ounces
1 tonne=32.150 troy ounces
1 ordinary ounce=.9115 troy ounces
1 ordinary pound=
14.58 troy ounces··········
Percent Gold = European System
100 %=1000 fine91.7 %=
917 fine
75.0 %=
750 fine
58.5 %=
585 fine
41.6 %=
416 fine= Karat System=
24 karat=
22 karat=
18 karat=14 karat=
10 karat

4000 B.C.

A culture, centered in what is today Eastern Europe,
begins to use gold to fashion decorative objects. Thegold was probably mined in the Transylvanian Alps or
the Mount Pangaion area in Thrace.

3000 B.C.

The Sumer civilization of southern Iraq uses gold tocreate a wide range of jewelry, often usingsophisticated and varied styles still worn today.

2500 B.C.

Gold jewelry is buried in the Tomb of Djer, king of theFirst Egyptian Dynasty, at Abydos, Egypt.

1500 B.C.

The immense gold-bearing regions of Nubia make
Egypt a wealthy nation, as gold becomes therecognized standard medium of exchange forinternational trade.
The Shekel, a coin originally weighing 11.3 grams ofgold, becomes a standard unit of measure in theMiddle East. It contained a naturally occurring alloy
called electrum that was approximately two-thirds
gold and one-third silver.

1350 B.C.

The Babylonians begin to use fire assay to test thepurity of gold.

1200 B.C.

The Egyptians master the art of beating gold into leaf
to extend its use, as well as alloying it with othermetals for hardness and color variations. They also
start casting gold using the lost-wax techniquethat today is still at the heart of jewelry making.
Unshorn sheepskin is used to recover gold dust fromriver sands on the eastern shores of the Black Sea.
After slucing the sands through the sheepskins, theyare dried and shaken out to dislodge the gold particles.
The practice is most likely the inspiration for the“Golden Fleece”.
1091 B.C.

Little squares of gold are legalized in China as aform of money.

560 B.C.

The first coins made purely from gold are minted in
Lydia, a kingdom of Asia Minor.

344 B.C.

Alexander the Great crosses the Hellespont with
40,000 men, beginning one of the most extraordinary
campaigns in military history and seizing vastquantities of gold from the Persian Empire.

300 B.C.

Greeks and Jews of ancient Alexandria begin topractice alchemy, the quest of turning base metals
into gold. The search reaches its pinnacle from thelate Dark Ages through the Renaissance.

218 B.C. –202 B.C.

600 A.D. –699 A.D.

742 A.D. –814 A.D.

1066 A.D.

1250 A.D. –1299 A.D.

The Byzantine Empire resumes gold mining in central
Europe and France, an area untouched since the fall ofthe Roman Empire.
Charlemagne overruns the Avars and plunders theirvast quantities of gold, making it possible for him totake control over much of western Europe.
With the Norman conquest, a metallic currency
standard is finally re-established in Great Britain with
the introduction of a system of pounds, shillings, andpence. The pound is literally a pound of sterlingsilver.
Marco Polo writes of his travels to the Far East, where
the “gold wealth was almost unlimited.”

1284 A.D.

Venice introduces the gold Ducat, which soon
becomes the most popular coin in the world andremains so for more than five centuries.

1284 A.D.

After a victorious campaign in Gaul, Julius
Caesar brings back enough gold to give 200
coins to each of his soldiers and repay all of Rome’sdebts.

Great Britain issues its first major gold coin, theFlorin. This is followed shortly by the Noble,
and later by the Angel, Crown, and Guinea.

1377 A.D.

Great Britain shifts to a monetary system basedon gold and silver.

50 B.C.

Romans begin issuing a gold coin called the Aureus.

1511 A.D.

476 A.D.

The Goths depose Emperor Romulas Augustus,
marking the fall of the Roman Empire.

King Ferdinand of Spain says to explorers, “Get gold,
humanely if you can, but all hazards, get gold,”launching massive expeditions to the newly
discovered lands of the Western Hemisphere.

58 B.C.

During the second Punic War with Carthage, theRomans gain access to the gold mining region ofSpain and recover gold through stream gravels andhardrock mining.

1556 A.D.

1700 A.D.

Georgius Agricola publishes De re Metallica, which
describes the fire assay of gold during the Middle
Ages.

1804 A.D. –1828 A.D.

Gold is discovered in Brazil, which becomes thelargest producer of gold by 1720, with nearly twothirds of the world’s output.

1816 A.D.

Great Britain officially ties the pound to a specificquantity of gold at which British currency isconvertible.

Isaac Newton, as Master of the Mint, fixes the priceof gold in Great Britain at 84 shillings, 11 & ½
pence per troy ounce. The Royal Commission,
composed of Newton, John Locke, and Lord Somers,
recommends a recall of all old currency, issuance of
new specie with gold/silver ratio of 16-to-1. The
gold price thus established in Great Britain lasted forover 200 years.

1817 A.D.

Britain introduces the Sovereign, a small gold coinvalued at one pound sterling1830 A.D.

Heinrich G. Kuhn announces his discovery of theformula for fired-on Glanz (bright) Gold. It makes
Meissen gold-decorated china world famous.

1837 A.D.

The weight of gold in the U.S. dollar is lessened to23.22 grains so that one fine troy ounce of gold isvalued at $20.67.

1848 A.D.

John Marshall finds flakes of gold while building asawmill for John Sutter near Sacramento, California,
triggering the California Gold Rush and hastening
the settlement of the American West.

1850 A.D.

Edward Hammong Hargraves, returning to Australia
from California, predicts he will find gold in his
home country in one week. He discovered gold in
New South Wales within one week of landing.
Comstock lode of gold and silver is struck in Nevada.

1744 A.D.

The resurgence of gold mining in Russia begins withthe discovery of a quartz outcrop in Ekaterinburg.

1787 A.D.

First U.S. gold coin is struck by Ephraim Brasher, agoldsmith.

1792 A.D.

The Coinage Act places the United States on abimetallic silver-gold standard, and defines the U.S.
dollar as equivalent to 24.75 grains of fine gold and371.25 grains of fine silver.

1799 A.D.

1803 A.D.

A 17-pound gold nugget is found in Cabarrus County,
North Carolina, the first documented gold discovery inthe United States.
Gold is discovered at Little Meadow Creek, North
Carolina, sparking the first U.S. gold rush.

1859 A.D.
1862 A.D.

North Carolina supplies all the domestic gold coinedby the U.S. Mint in Philadelphia for currency.

Latin Monetary Union is established setting fineness,weight, size, and denomination of silver and goldcoins of France, Italy, Belgium and Switzerland (andGreece in 1868) and obligating all to accept eachother’s current gold and silver coins as full legaltender.
1868 A.D.

George Harrison, while digging up stones to build ahouse, discovers gold in South Africa – since then,the source of nearly 40% of all gold ever mined.

1873 A.D.

As a result of ongoing revisions to minting andcoinage laws, silver is eliminated as a standard ofvalue, and the United States goes on an unofficial
gold standard.

1887 A.D.

A British patent is issued to John Steward
MacArthur for the cyanidation process for recovering
gold from ore. The process results in a doubling ofworld gold output over the next twenty years.

1896 A.D.

1898 A.D.

William Jennings Bryan delivers his famous “Cross ofGold” speech at the Democratic national convention,
urging a return to bimetallism. The speech gains him
the party’s presidential nomination, but he loses in thegeneral election to William McKinley.
Two prospectors discover gold while fishing in
Klondike, Alaska, spawning the la st gold rush of thecentury.

1900 A.D.

The Gold Standard Act places the United States
officially on the gold standard, committing the UnitedStates to maintain a fixed exchange rate in relation toother countries on the gold standard.

1903 A.D.

The Engelhard Corporation introduces an organic
medium to print gold on surfaces. First used fordecoration, the medium becomes the foundation for
microcircuit printing technology.
1913 A.D.
1914 A.D. –1919 A.D.

Federal Reserve Act specifies that Federal Reserve
Notes be backed 40% in gold.
A strict gold standard is suspended by several
countries, including United States and Great Britain ,during World War I.

1925 A.D.

Great Britain returns to a gold bullion standard, withcurrency redeemable for 400-ounce gold bullion bars
but no circulation of gold coins.

1927 A.D.

An extensive medical study conducted in Franceproves gold to be valuable in the treatment ofrheumatoid arthritis.

1931 A.D.

Great Britain abandons the gold bullion standard.

1933 A.D.

To alleviate the banking panic, President Franklin D.
Roosevelt prohibits private holdings of all gold coins,bullion, and certificates.

1934 A.D.

The Gold Reserve Act of 1934 gives the government
the permanent title to all monetary gold and halts theminting of gold coins. It also allows gold certificatesto be held only by the Federal Reserve Banks, putting
the U.S. on a limited gold bullion standard, underwhich redemption in gold is restricted to dollars held
by foreign central banks and licensed private users.
President Roosevelt reduces the dollar by increasing
the price of gold to $35 per ounce.

1935 A.D.

Western Electric Alloy #1 (69% gold, 25% silver,and 6% platinum) finds universal use in all switchingcontacts for AT&T telecommunications equipment.

1937 A.D.

The bullion depository at Fort Knox, Kentucky, isopened.

1942 A.D.

President Franklin D. Roosevelt issues a presidential
edict closing all U.S. gold mines.

1944 A.D.

The Bretton Woods agreement, ratified by the U.S.
Congress in 1945, establishes a gold exchange
standard and two new international organizations, theInternational Monetary Fund (IMF) and the World
Bank. The new standard involves setting par values
for currencies in terms of gold and the obligation ofmember countries to convert foreign official holdingsof their currencies into gold at these par values.

1945 A.D.

Gold-backing of Federal Reserve Notes is reduced by25.5%

1947 A.D.

The first transistor is assembled at AT&T Bell
Laboratories. The device uses gold contacts pressed
into a germanium surface.

1954 A.D.

London gold market, closed early in World War II,reopens.
AT&T Bell Laboratories is granted the first patent for
the invention of the laser. The device uses carefully
positioned gold-coated mirrors to maximize infrared
reflection into the lasing crystal.

1960 A.D.

The European Rheumatism Council confirms
intravenously administered gold is an effective
treatment for rheumatoid arthritis.
1961 A.D.

Americans are forbidden to own gold abroad as well asat home.
The central banks of Belgium, France, Italy, theNetherlands, Switzerland, West Germany, the United
Kingdom and the United States form the London Gold
Pool and agree to buy and sell at $35.0875 per ounce.

1965 A.D.

Col. Edward White makes the first space walk during
the Gemini IV mission, using a gold-coated visor toprotect his eyes from direct sunlight. Gold-coatedvisors remain a standard safety feature for astronautexcursions.

1967 A.D.

South Africa produces the first Krugerrand. This 1ounce bullion coin becomes a favorite of individual
investors around the world.

1968 A.D.

London Gold Market closes for two weeks after asudden surge in the demand for gold.
The governors of the central banks in the gold poolannounce they will no longer buy and sell gold in theprivate market. A two-tier pricing system emerges:
official transactions between monetary authorities
are to be conducted at an unchanged price of $35 per
fine troy ounce, and other transactions are to beconducted at a fluctuating free-market price.

U.S. Mint terminates policy of buying gold from andselling gold to those licensed by the U.S. Treasury tohold gold.

June, the market price in London has risen to morethan $120 per ounce.
Japan lifts prohibition on imports of gold.

Gold-backing of Federal Reserve Notes is eliminated.
1974 A.D.

Americans permitted to own gold, other than justjewelry, as of December 31.

1975 A.D.

The U.S. Treasury holds a series of auctions at whichis accepts bids for gold in the form of 400-ounce bars.
In January, 754,000 troy ounces are sold and another499,500 more in June.

1975 A.D.

Trading in gold for future delivery begins on New
York’s Commodity Exchange and on Chicago’s
International Monetary Market and Board of Trade.

Intel introduces a microchip with 1,024 transistors
interconnected with invisibly small gold circuits.
1970 A.D.

1971 A.D.

The charge-coupled device is invented at Bell
Telephone Laboratories. First used to record thefaint light from stars, the device, which uses gold tocollect the electrons generated by light, eventually isused in hundreds of civilian and military devices,
including home video cameras.
On August 15, U.S. terminates all gold sales orpurchases, thereby ending conversion of foreign
officially held dollars into gold; in December, under
the Smithsonian Agreement signed in Washington,U.S. devalues the dollar by raisin g the official dollar
price of gold to $38 per fine troy ounce.
The colloidal gold marker system is introduced byAmersham Corporation of Illinois. Tin y spheres ofgold are used in health research laboratories
worldwide to mark or tag specific proteins to reveal
their function in the human body for the treatment ofdisease.

1973 A.D.

On February 13, U.S. devalues the dollar again andannounces it will raise the official dollar price of gold
to $42.22 per fine troy ounce. Dollar-selling
continues, and finally all currencies are allowed to“float” freely, without regard to the price of gold. By

The Krugerrand is launched on to the U.S. Market.
1976 A.D.

1976 A.D. –1980 A.D.

1978 A.D.
1980 A.D.

The Gold Institute is established to promote thecommon business interests of the gold industry byproviding statistical data and other relevant
information to its members, the media, and thepublic, while also acting as an industry spokesperson.
IMF sells one-third of its gold holdings, 25 million
troy ounces to IMF members at SDR 35/ounce inproportion to members’ shares of quotas on August
31, 1975, and 25 million troy ounces at a series ofpublic auctions for the benefit of developing member
countries.
U.S. Treasury sells 15.8 million troy ounces of gold

to strengthen the U.S. trade balance.
1978 A.D.

1978 A.D.

Amended IMF articles are adopted, abolishing theofficial IMF price of gold, gold convertibility andmaintenance of gold value obligations; gold iseliminated as a significant instrument in IMF
transactions with members; and the IMF isempowered to dispose of its large gold holdings. By
Act of Congress, the U.S. abolishes the official priceof gold. Member governments are free to buy andsell gold in private markets.

government concerning the role of gold in domestic
and international monetary systems.”
The first space shuttle is launched, using gold-coatedimpellers in its liquid hydrogen fuel pump.
1982 A.D.

Congress passes Olympic Commemorative Coin Act,
which includes issuing the first legal tender U.S. goldcoin since 1933.

1982 A.D.

U.S. Gold Commission report recommends no newmonetary role for gold, but supports a U.S. goldbullion coin.

A weak U.S. dollar propels interest in gold, aided bysuch events as the U.S. recognition of Communist
China, events in Iran and Sino-Vietnamese border
disturbances.

New gold deposits are discovered in North Americaand Australia.

U.S. Congress passes the American Arts Gold
Medallion Act, representing the first official issue of agold piece for sale to individuals in almost half acentury.
Japan lifts ban on gold exports, touching off a “goldrush” among investors who can sell as well as buy.
1979 A.D.

The Canadian 1-ounce Maple Leaf is introduced.

1980 A.D.

Gold reaches intra-day historic high of $870 on
January 21 in New York and by year-end closes at$591.

1981 A.D.

Treasury Secretary Donald Regan announces theformation of a Gold Commission “to assess and makerecommendations with regard to the policy of the U.S.

Canada introduces the fractional Maple Leaf coins insizes of 1/4 ounce and 1/10 ounce.
China introduces the Panda bullion coin.
1986 A.D.

The first new gold jewelry alloy this century, 990Gold (1% titanium) is introduced to meet the needfor an improved durability of 99% pure gold
traditionally manufactured in Hong Kong. The verymalleable alloy is easily worked into intricate design,
but can be converted into a hard, durable alloy bysimply heating it in an oven.
The American Eagle Gold Bullion Coin isintroduced by the U.S. Mint. Treasury resumes
purchases of newly mined gold.

Goldcorp Australia issues the Nugget gold bullion
coin.
Gold-coated compact discs are introduced. The goldcoated discs provide perfection of reflectivesurfaces, eliminate pinholes common to aluminum
surfaces, and exclude any possibility of oxidative
deterioration of the surfaces.
1987 A.D.

1993 A.D.

India and Turkey liberalize their gold markets.
1994 A.D.

Russia formally establishes a domestic gold market.

1996 A.D.

The Mars Global Surveyor is launched with an onboard gold-coated parabolic telescope-mirror that will
generate a detailed map of the entire Martian surface
over a two-year period.

1997 A.D.

Congress passes Taxpayers Relief Act, allowing US
Individual Retirement Account holders to buy goldbullion coins and bars for their accounts as long as
they are of a fineness equal to, or exceeding, 99.5%
percent gold.

1999 A.D.

The Euro, a pan-European currency, is introduced,backed by a new European Central Bank holding 15%
of its reserves in gold.

2000 A.D.

Astronomers at the Keck Observatory in Hawaii use
the giant gold-coated mirrors of the most detailed
images of Neptune and Uranus ever captured.

2002 A.D.

The Gold Institute’s Board of Directors votes todissolve the association and consolidate its activities
within the National Mining Association, effective
January 1, 2003. The decision was made against thebackdrop of consolidation in the gold sector andchanges in the general business climate .

British Royal Mint introduces the Britannia Gold
Bullion Coin.
World stock markets suffer sharp reversal on October
19; volatile investment markets increase gold trading
activity.
The World Gold Council is established to sustain anddevelop demand for the end uses of gold.

1988 A.D.

The international media report huge gold purchases by
a “mystery” buyer, later reveled to be the Japanese
government in preparation for the minting of a majorcommemorative coin. This coin, honoring the sixtiethanniversary of Emperor Hirohito’s reign, is issued inNovember.

1989 A.D.

Austria introduces the Philharmoniker bullion coin.

1990 A.D.

United States becomes the world’s second largest gold
producing nation.

1992 A.D.

World Gold Council introduces the Gold Mark as aninternational identification mark for gold jewelry.

Germany lifts its value added tax restrictions on
financial gold, causing a resurgence of private demandof gold.

SourcesJ. Aron/Goldman Sachs & Company
Gold Fields Minerals Services
The Gold Information Center
The Gold Institute (former)
The Mentor
The Money Encyclopedia
United States Bureau of Mines··········The Egyptians, Cyril Aldred, 1961.
Gold – An Illustrated History, Vincent Buranelli, 1979.
The Story of Civilization, Will Durant, 1954.
Life in Ancient Egypt, Adolf Erman, 1971.
The Gold Companion, Timothy Green, 1993.
World of Gold, Timothy Green, 1991.
Love of Gold, Emily Hahn, 1980.
Archaic & Classical Greek Coins, Colin N. Kraay, 1976.
Gold Fever, Kenneth J. Kutz, 1987.
Your Gold and Silver, Henry A. Merton, 1981.
Gold Institute (former) website, 2004