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Gold and Silver

Definition

Gold and silver are precious metals that have been used as mediums of exchange (money) throughout history due to their rarity, durability, and intrinsic value. In the context of European history, they were highly sought after in overseas colonies during the Age of Exploration.

Analogy

Think of gold and silver like rare Pokémon cards. They're valuable because they're hard to find (rare), last a long time (durable), and everyone agrees they're worth something (intrinsic value).

Related terms

Bullionism: This is an economic theory that defines wealth by the amount of precious metals owned. It was a major part of mercantilist policies.

Inflation: This refers to a general increase in prices and fall in the purchasing value of money. When large amounts of gold and silver were brought into Europe from the New World, it led to inflation because there was more money circulating.

Spanish Conquistadors: These were explorers from Spain who conquered large areas of Central and South America in search for gold and silver among other things.