Gold is a precious metal that is highly valuable.  Because it has always held value throughout history it has been used as money.  Another reason it was used for money is that gold is the most malleable metal.  It can be most easily formed into shapes such as coins.  Gold also forms alloys with other metals quite easily.  It can be mixed with almost any other metal to add its properties together. Gold is resistant to heat, moisture and oxygen, the three things that can be most corrosive on many metals. 

Gold is the basis for the International Monetary Fund (IMF) with a currency code of XAU.  Gold was used as the standard for many currencies in history.  This is known as the gold standard.  Gold has always been a sign of wealth and prestige.  Solid gold coins, however, were not often produced because they were too soft.  Instead, gold was mixed with other metals.  Alloying gold with silver, copper or other metals makes it much harder and therefore much more desirable to use for coins.

Gold is typically measured in carats (k) with pure gold holding a designation of 24k.  When other metals are added to the gold the carat value decreases producing gold in 22k, 18k, 14k and 10k.  The lower the carat the more alloy metal has been added.  Copper is often used with gold because it has a similar color.  White gold is typically 18k gold mixed with nickel, zinc and copper to produce a silvery tone.

Gold has historically been used to back up currency.  Countries used a certain weight of gold to correspond to a specific amount of currency. The countries had this amount of gold in store to back up the money they put into circulation.  Gold bars are kept in underground vaults in several locations in the United States, one of these being the famous Fort Knox. 

The problem with the gold standard was that the value of gold fluctuated constantly, making the value rather hard to pinpoint.  Every so often the currency had to be reevaluated based on the newest value of gold.  In 1961 it became apparent to US and European banks that the gold market needed to be manipulated in order to protect any currency devaluation because of increased gold demand. 

In 1968 the collapse of the gold pool occurred and a new pricing schedule was set up.  While most bank systems still hold a reserve of gold it no longer is a fair representation of the currency that is circulating.  Gold is still mined in many countries around the world. 

Because of its stability, utility and simplicity, many wealthy people continue to purchase and keep gold bars.  Gold bars are often come as convenient 1-ounce wafers.  These are easily certified and can be valued effectively based on the value of an ounce of gold.  Larger bars may come in 100-gram, ten-ounce and kilogram sizes.  The larger sized bars are most suited to jewelers or artisans who want to use the gold to fashion jewelry or artwork.  

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