Precious Metals and Paper Money
Weighing Metals
The weight and purity of precious metal, such as gold and silver, determines its value as money. Determining weight requires a scale and a trustworthy set of weights of known measurements. Some cultures have made weights into art forms, as with these sculptural weights that were used in West Africa for weighing gold dust from the 15th to the late 19th century CE.
Crocodile Gold Weight, Gold Coast (Ghana), about 19th Century
Donated by Benjamin, Harvey G., and Norman Stack
Shield Gold Weight, Gold Coast (Ghana), about 19th Century
Donated by National Museum of African Art
Gold and Silver
The use of silver and gold in transactions can be traced back more than 4,000 years to ancient Mesopotamia and Egypt. These precious metals are valued for their scarcity, making them desirable materials for saving and trading. Gold and silver became the most widely used precious metals for coins in the ancient world and were regularly used to make coins until the mid-20th century.
Stater Coin, Corinth, 4th Century BCE
Transfer from U.S. Mint
Gold Ingot, Mexico, 17th Century
Donated by Franklin P. Perdue
8 Escudo Coin, Mexico, 1744
Donated by Estate of Josiah K. Lilly Jr.
Silver Ingot, China, Late 19th Century
Donated by The Chase Manhattan Bank
Precious Metals and Paper Money
The scarcity of gold and silver, precious metals used in the production of coins, constrained monetary supplies. From the 17th century, governments increasingly began to issue paper money, which could be redeemed for gold or silver coins or bullion. These notes are gold and silver certificates issued in the United States during the late 19th and early 20th centuries.
20 Dollar Note, United States, 1905
Donated by The Chase Manhattan Bank
5 Dollar Note, United States, 1886
Donated by U.S. Department of the Treasury
Fiat Currency
Precious metals are no longer used to make national currencies or to back them. Today money derives its value from national laws defining what can be used as legal tender and the user’s faith in the authority that issues that money. This type of money is referred to as fiat, which means “it shall be” in Latin.
1 Dollar Note, United States, 1963
Donated by Mr. & Mrs. Charles O'Donnell
