No More Gold

[Arcane]

The fantasy genre, especially of the Medieval variety is well known for using an oft nondescript gold currency and I'm fine with that. It's cool if a world builder has mapped out a custom economic plan for their fictional kingdom and I think it'll be all the richer experience for it but it's not something I consider necessary for a world to be complete.

Nevertheless, you should probably at least know what form of currency your people use (legal paper tender, gold, steel, etc.) and that's what I'm here about. In a world where alchemy has progressed to turn lead into gold, what is the most likely currency replacement?

You can give this as much or as little thought as you'd like. I'm not an economist but if you are then by all means, geek out. This is just an idea so I can't really answer specific questions. More than anything, I'm just curious as to what sort of answers we can come up with. Feel free to interpret the question how you want. Maybe only some people can use this alchemy or maybe it's common and so on.

I imagine that if gold were easily attainable that it would not last as a form of currency. I suppose if the setting were one where natural resources are scarce, you could use something like water or some sort of fuel source. Or even salt! But if not then what other replacements might be feasible? Bottle caps from an ironically branded soda? Sure. Or how about a conversion to gems, with different types being used for different denominations?

Run wild

 

[61 Argent Feathers Seal Evil]

If alchemy advanced enough to turn lead into gold cheaply enough to devalue it, would that mean it's possible to transmute other metals? That would rule out most metal-based currency systems.

Metal was used as a base for currency due to its durability, how it was universally valued, and how much value it had. Most goods people use aren't suitable for use as currency; for example, food rots and is too bulky to carry.

One difficulty in replacing a currency is a lack of existing use. It would be best for a potential replacement to already be valued and accepted as tradable. That's why paper money gained popularity in Europe; in the beginning it was interchangeable for metal currency, and was detached from metal's value later.

Gemstones might be of use, due to their longevity and aesthetic and cultural value, though some kinds might not be durable enough. I can imagine beads of semiprecious stones like agate, jade, or lapis lazuli being carved and used for trade. The wide variety of gemstones might lead to several circulating types of currency, with differing values based on how common or valued each type is in a specific location. Rarer stones might become somewhat unsuitable for currency outside of barter due to how much their quality affects their value, leading to a lack of standardized value.

If alchemy can transmute metals, what's stopping it from transmuting crystals, or any other material? Transmutation might invalidate any material-backed currency. Some materials might be difficult to reproduce due to their structure, such as chatoyant gemstones' inclusions, but a lot of gemstones are most valued when they are mostly uniform in structure and composition. Encouraging a transmuted substance to take a simple pattern seems well within the realm of possibility.

 

[Arcane]

If alchemy advanced enough to turn lead into gold cheaply enough to devalue it, would that mean it's possible to transmute other metals? That would rule out most metal-based currency systems.

That's one of those questions I don't have an answer for. This all started with that one question and then I thought I'd throw it at the Circle for discussion. Assuming that alchemy can also transmute other metals with relative ease, then I'd agree that most metal-based currency would phase out. The driving popularity of 'real-life' alchemy was this idea that they could turn lead into gold. Immortality was pretty popular, too. But what if that's the extent of its transmutable ability? I wonder what other metal might be a likely replacement. If I remember correctly, the Dragonlance setting uses steel.

But I also like the idea that if alchemy can transmute other metals with ease, then we'd really have to get creative with other resources. As you said, food is out. Salt has regularly been a common, valuable resource used for trading.

Gemstones might be of use, due to their longevity and aesthetic and cultural value, though some kinds might not be durable enough. I can imagine beads of semiprecious stones like agate, jade, or lapis lazuli being carved and used for trade. The wide variety of gemstones might lead to several circulating types of currency, with differing values based on how common or valued each type is in a specific location. Rarer stones might become somewhat unsuitable for currency outside of barter due to how much their quality affects their value, leading to a lack of standardized value.

I hadn't considered how the cut of gemstones might affect their value. Good point. I should have thought about that, too since Brandon Sanderson's Stormlight Archive utilizes a currency system based on different cuts of gems. They are also able to be infused with 'stormlight' but I don't believe that actually affects their worth since the light fades over time.

You've given me something to think about. I think I'll do some research into the history of established currencies after bartering. I'm not even entirely certain how my own country's currency works. It's a good thing they number those things.

 

[61 Argent Feathers Seal Evil]

But what if that's the extent of its transmutable ability? I wonder what other metal might be a likely replacement. If I remember correctly, the Dragonlance setting uses steel.

An idea I find interesting is the use of alloying metals for currency; things like chromium, manganese, tungsten, vanadium, etc. Essentially, long-lasting substances that are valuable even in small quantities due to their uses. Their suitability as currency might be hampered by unfamiliarity and limited use; the ones to find these metals most useful would be smiths and metalworkers, and they might not care for materials they don't trust or don't know how to use. Still, I can imagine something like a dime made of an alloy of these metals with engraved instructions to melt it with pure iron and process it a certain way to get a very strong, rust-resistant steel. Such a thing would likely be highly valued in settings with older technology and a lot of combat.

I think I'll do some research into the history of established currencies after bartering.

You might find the video series "Extra History" interesting; they did a series of videos about the development of paper money.

 

[Arcane]

An idea I find interesting is the use of alloying metals for currency; things like chromium, manganese, tungsten, vanadium, etc. Essentially, long-lasting substances that are valuable even in small quantities due to their uses. Their suitability as currency might be hampered by unfamiliarity and limited use; the ones to find these metals most useful would be smiths and metalworkers, and they might not care for materials they don't trust or don't know how to use. Still, I can imagine something like a dime made of an alloy of these metals with engraved instructions to melt it with pure iron and process it a certain way to get a very strong, rust-resistant steel. Such a thing would likely be highly valued in settings with older technology and a lot of combat.


You might find the video series "Extra History" interesting; they did a series of videos about the development of paper money.

That's a pretty slick idea. I've even heard some of those words before. It does sound more like specialized bartering, something to do be done on a smaller scale perhaps with a community or city where that sort of specific material is in regular demand? Certainly a war oriented society's economy would consider what materials are important to the people who make their weapons. After all, wood was probably just as good as local currency in ancient Egypt.

Thanks for the link! I'm always looking for cool videos like this to beat me in the face with information. I'll definitely check it out