As the metal
Special issue Canadian Gold Maple Leaf coin with the highest purity of any gold coin at a guaranteed 99.999%
Medium of monetary exchange
Main article: Gold standard
In various countries, gold was used as a standard for monetary exchange, but this practice has been abandoned with the rise of fiat currency. The last country to back their money with gold was Switzerland, which backed 40% of its value until it joined the International Monetary Fund in 1999. [6] Pure gold is too soft for ordinary use and is typically hardened by alloying with copper or other base metals. The gold content of gold alloys is measured in carats (k), pure gold being designated as 24k.
The 220 kg gold brick displayed in Chinkuashi Gold Museum, Taiwan, Republic of ChinaGold coins intended for circulation from 1526 into the 1930s were typica
lly a standard 22k alloy called crown gold, for hardness. Modern collector/investment bullion coins (which do not require good mechanical wear properties) are typically 24k, although the American Gold Eagle, the British gold sovereign and the South African Krugerrand continue to be made at 22k, on historical tradition. The special issue Canadian Gold Maple Leaf coin contains the highest purity gold of any bullion coin, at 99.999% (.99999 fine). The popular issue Canadian Gold Maple Leaf coin has a purity of 99.99%. Several other 99.99% pure gold coins are currently available, including Australia's Gold Kangaroos (first appearing in 1986 as the Australian Gold Nugget, with the kangaroo theme appearing in 1989), the several coins of the Australian Lunar Calendar series, and the Austrian Philharmonic. In 2006, the U.S. Mint began production of the American Buffalo gold bullion coin also at 99.99% purity.Gold was used as a medium of monetary exchange throughout history together with or instead of other minerals, like silver, salt, and copper. At the beginning of World War I the warring nations went onto a fractional gold standard, inflating their currencies to finance the war effort. After World War II gold was replaced by a system of convertible currency following the Bretton Woods system. Many holders of gold in storage (as bullion coin or bullion) hold it as a hedge against inflation or other economic disruptions. The ISO currency code of gold bullion is XAU.
The examples and perspective in this section may not represent a worldwide view of the subject. Please improve this article or discuss the issue on the talk page.
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