09/03/2016

This 4,000-year old financial indicator says that a major crisis is looming - Sovereignman.com

Jeff Fitchett: I agree with Simon Black's assessment.

Over 4,000 years ago during Sargon the Great’s reign of the Akkadian Empire, it took 8 units of silver to buy one unit of gold.
This was a time long before coins. It would be thousands of years before the Lydians in modern day Turkey would invent gold coins as a form of money.
Back in the Akkadian Empire, gold and silver were still used as a medium of exchange.
But the prices of goods and services were based on the weight of metal, and typically denominated in a unit called a ‘shekel’, about 8.33 grams.
For example, you could have bought 100 quarts of grain in ancient Mesopotamia for about 2 shekels of silver, a weight close to half an ounce in our modern units.
Both gold and silver were used in trade. And at the time the ‘exchange rate’ between the two metals was fixed at 8:1.

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