Is gold an acceptable means of currency exchange?
To be honest, I am not sure which is a better way to ask the question: Is gold an acceptable means of currency exchange in most travel-able countries? or which countries is gold NOT an acceptable means of currency exchange?
This question comes to mind in respect to backpacking across Eurasia. I know most European countries take gold, but I have little knowledge on topic from Eastern Europe on to the eastern coast of China.
The idea is that gold carries a lot of value with very little displacement and weight. With gold at it's current value, one could feasibly carry a few ounces to finance the trip.
Best Answer
Although gold is at a high value now, it's not easy to convert into cash. A lot of places are doing "cash for gold" in shops for people to sell their old jewlery etc. However they pay maybe one tenth the price per troy ounce. I know this is the case in numerous European countries. So you'll have to buy it at 100%, and sell it at 10%, meaning a 90% drop in value. Gold is a terrible way to convert your cash when travelling around Europe.
You'd be much better bringing Euro or US Dollars.
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Why gold is used for foreign exchange?
Gold does not dissipate into the atmosphere, it does not burst into flames, and it does not poison or irradiate the holder. It is rare enough to make it difficult to overproduce and malleable to mint into coins, bars, and bricks. Civilizations have consistently used gold as a material of value.How does gold relate to currency?
When central banks purchase gold, it affects the supply and demand of the domestic currency and may result in inflation. This is largely due to the fact that banks rely on printing more money to buy gold, thereby creating an excess supply of fiat currency.Is gold the best form of currency?
While Gold Is the Best Element to Use as a Currency, Any Metal Can be Tokenized and Transacted With. The above analysis provides why gold has been the best element to transact with throughout history.What gives a dollar bill its value? - Doug Levinson
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Answer 2
I am not aware of any country where gold is an acceptable currency. Banks typically don't buy gold from strangers. They require that you have a checking account with them.
Jewellery stores, pawn shops and thelike will probably take your gold for cash, but it's a gamble: They'll guess the value and make an offer based on how much they value your coin. Maybe more importantly, you might not find such a shop when you need them.
The risk of a credit/debit card getting blocked is real. However, carrying two cards or one card and cash / traveller's cheques should be fairly save.
EURos are good all over Western and Central Europe. In Eastern Europe, Russia, and Asia, USD is popular. Changing cash is no longer the ripoff, it used to be; often cheaper than credit card transactions, certainly cheaper than selling gold.
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