Gold coins are among the oldest types of currency employed by humankind. They have been in use, essentially, since there was such a thing as currency used within societies. Of all the precious metals, gold is used to produce the most valuable coinage. The reasons for this metal being valued as highly as it is are many, though they have remained essentially the same for thousands of years.
Despite incredible advances in both markets and
Gold coins are prized because they have a value other than that assigned to them by the government which minted them. Simply put, a gold coin is made out of a rare, versatile and very useful material. Gold never tarnishes, it is very malleable, it is employed in both jewelry and practical devices and it can be melted down and recast as much as desired.
If there were suddenly no such thing as currency, the gold in a coin would still have practical worth, and from that flows its value. Paper currency is only worth either the value determined by the precious metals that back it or by fiat. Gold currency is worth the value it is assigned by the market and the government which struck the coin, but it is also as useful as the materials of its manufacture.