Gold and silver change leeds to increase in markets
Change is inevitable among the first currencies to be used were gold and silver that is even before Christ era. The change has some benefits and disadvantages. The major disadvantage is fake dollar bills. Gold was sometime immeasurable making it difficult to buy or sell goods at different amounts. Gold and silver change has led to increase in markets, a reduction in batter trade. The gold could not be able to pay all the bills since its division to smaller denominations was impossible. The following are the advantages of having money instead of gold and silver as method of payment.
The gold and silver have been used to store wealth in different banks. Instead of storing the money in form of dollars they tend to store the money in gold bars and silver bars. Every gold bar has its’ worth inform of money, making it easier to trade it for money or even sell it for money. Keeping money in form of dollars reduces the chances of theft since the gold must be labelled before being stored and in the money era one cannot buy any commodity using gold so the thief will be required to exchange the gold to money making it easy to track and arrest the suspect.
Money is divided to many denominations allowing the purchase of even the least expensive commodities in the market. In the gold era people were forced to pack commodities according to the amount of gold that is available for exchange. Mostly gold was owned by the rich in the community while nowadays even the minors in the community can own money and use it to purchase goods and services. Banks had a problem with dividing the gold so that they could offer loans to the people since different amounts of gold were deposited for saving while there will be a conflict of gold amounts between the people saving and the people borrowing.
Gold was heavy compared to money and also less flexible than money. Money is so flexible and easy to carry and also lighter in weight that the gold. Carrying gold in the new era might be safer than carrying money but then one would get tired carrying it especially the gold bars. Money is more flexible since one can use different denominations to fill the required amount to pay for a certain commodity while on the other hand gold only can buy a commodity at a certain fixed price that the gold is worth.
Trading has been made easier since there is the introduction of vending machines which can only be used when one has money and not gold. The change of gold and silver to money comes with some disadvantages, the following are some of the disadvantages. Increased theft and corruption since money is easy to steal than gold, Increase in amount of fake money. Gold was harder to fake than money. To conclude the change from the gold and silver era to the money era has caused more good than harm.