Using gold as a means of payment for goods and services is thousands of years old. In early civilisations both gold and silver were a popular choice. As far back as 2BC gold and silver were traded according to their weight, which was measured in ingots. It was not until later in civilisation that gold was used to make gold coins.

The first actual coins crafted from gold and silver alloyed together date back to the 6th century and originated in Lydia, not in Turkey. They also had identifying marks on both sides of the coin. It was at about this time that gold coins became popular across the water in Greece and were used for the payment of goods and services. Like all great civilisations the Romans weren’t long about adopting this method and used
gold coins to pay their legions of armies. After the Romans the Venetians followed suit and started to produce gold ducats. By 1300 all of Europe was producing gold coins as a means of payment. The first British sovereign was minted in 1489 by Henry VII, and weighed 23 carats.

By a strange twist of fate silver became more valuable than gold, as most gold at this time was sent to be minted. In 1717 Sir Isaac Newton set the price for gold which was to last for the next two hundred years, a snip at £4.35 sterling pounds. This also had the double effect of placing Britain on the gold standard and made gold coins the standard in circulation. Nearly all gold mined during the 19th century was made into gold coins. However, the First World War and the subsequent Second World War ended the era of gold coins.