A gold coin is a coin made mostly or entirely of gold. Gold has been
used for coins practically since the invention of coinage, originally
because of gold's intrinsic value. In modern times, most gold coins
are intended either
to be sold to collectors, or to be used as bullion coins, coins whose
nominal value is irrelevant and which serve primarily as a method of
investing in gold. Gold has been used as money for many reasons. It is
fungible,
meaning that it can be traded easily, with a low spread between the
prices to buy and sell. Gold is also easily transportable, as it has a
high value to weight ratio, compared to other commodities, such as
silver. Gold can
be divided into smaller units, without destroying its value. The
density of gold is higher than most other metals, making it difficult
to pass counterfeits. Gold is extremely unreactive. The scarcity of
gold stabilizes its value.
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