Metallivalut

Metallivalut, also known as precious metal currencies, are forms of money whose value is directly tied to the intrinsic value of a precious metal, most commonly gold or silver. Unlike fiat currencies, which derive their value from government decree and market confidence, metallivalut derive their worth from the scarcity and industrial or aesthetic demand for the metal itself. Historically, many economies operated under a gold standard or silver standard, where currency units were directly convertible into a fixed weight of the specified metal. This provided a degree of stability and limited the government's ability to arbitrarily inflate the money supply. The physical metal itself often served as the medium of exchange, or paper notes were issued that represented a claim on a certain quantity of the metal held in reserve. The transition away from metallivalut in many countries began in the 20th century, with the Bretton Woods system being a significant step, and the eventual abandonment of gold convertibility by the United States in 1971 marking a widespread shift towards pure fiat systems. While no major economies currently use metallivalut as their primary currency, the concept remains relevant in discussions about monetary policy, inflation hedging, and the historical evolution of money.