Week of November 15, 2020

All That Glitters


Something that sets a standard for quality or reliability in its field is often called the “gold standard.” For a much of money’s history before the 20th century, currency was exchangeable for a fixed amount of gold set by the issuing government. For example, in 1834, the US government set the exchange rate of an ounce of gold at $20.67, where it remained for 99 years. Hence, “gold standard” came to convey a universal standard of measure. Money is no longer backed by precious metals, but is “fiat money,” only backed by the government that issued it.


The Golden Rule, simply stated as “Treat others as you would like them to treat you,” is a strikingly universal concept. It has been around in some variety since at least the 6th century BC, and researchers report that the rule is “found in some form in almost every ethical religion,” and is “a concept that essentially no religion misses entirely.”

SOURCE: Pinker, Steven. The Better Angels of Our Nature, Why Violence Has Declined, New York, Penguin, 2011. (pg. 182)


Bling aside, pure gold is a remarkable substance. It is so dense that one ton can be packed into a cubic foot. It is the most malleable and ductile metal; gold has been pressed into a sheet two atoms thick (yes, atoms) and stretched into a one-atom wire without breaking. It conducts electricity and heat well. Plus, gold is rather immortal; it does not tarnish nor decompose in air, water, or even most strong acids and bases. This is why ocean treasure divers, tomb raiders, and other gold hunters can usually expect to find gold in good condition, regardless of its age.


The gold stored at Kentucky’s Fort Knox is a modern symbol of hyper-secure massive wealth, but there is one far larger stash. It is five stories below ground in the Federal Reserve Bank of New York, where over a half million gold bars representing about 25% of the world’s known gold wealth are painstakingly guarded deep in the rock of southern Manhattan.


An extremely valuable person is sometimes said to be “worth their weight in gold.” However, in the metals world, at least two metals are typically more valuable than gold: rhodium and palladium.


In the US, the most famous “gold rush” began when when the shiny metal was discovered in 1848 in California’s Sacramento Valley. Over the next few years, approximately 300,000 people came from all around the world came to extract over 750,000 lbs. of gold from the land. The rush populated and developed the area, and it is why the San Fransisco NFL team is called the “49ers” (after the rush of 1849).


“Golden handcuffs” or “velvet handcuffs” describe the good pay, vacation, retirement, or other benefits that may keep you at a job you might otherwise leave. If you’re a lucky executive, however, you may get a “golden parachute,” or a generous severance package when you’re let go from your company.