In China, from around 1,200 BC, the cowrie shell was used as an item of exchange – ‘shell money’. Archaeologists’ finds suggest that from 1,000 BC the Chinese began to produce mock cowrie shells made of metal.
However, evidence indicates that metal coins also appeared independently of each other and these Chinese versions, at two other locations on the Eurasian continent – Lydia (now Turkey) and India between 700-600 BC. It is thought that increased trade between these locations was a trigger for the creation of coins to replace the barter system.
Bartering had two distinct disadvantages – the person wishing to ‘buy’ may not have anything the ‘seller’ wished to acquire, and even if they could agree on a trade, the haggling process was time consuming. Coins offered a solution in that they represented fixed values and could be exchanged not for their intrinsic value, but in order to change hands again in payment for some other goods.
An appreciation of the value of
metals such as gold and silver had already developed. Since these metals were durable, portable and demand for them remained constant, they were a natural choice for use as a common currency. The value of a coin depended upon its weight and metal content.
The idea of using coins quickly spread to Greece, and because the early Greeks were keen traders throughout the Mediterranean, coinage spread around the region. Alexander the Great minted vast quantities of silver coins, using them to pay his armies and keep them loyal. It is believed that this significantly contributed to his ability to expand across three continents.
Contribution to Retail History
Whether Greek, Roman or Islamic, gold or silver, hammered or milled, coins represented an inherent value that fostered trade among local tribes as well as nations. Throughout ancient and modern civilizations, coins not only represented a certain trusted value, but also a message of culture and symbolism as various images, rulers and leaders were engraved on them.