The History of Portuguese Gold

Some archaeological studies reveal that gold was already being mined in Mesopotamia in 4000 BC. In fact, the search for this metal was at the origin of the emergence, development and conquests of the first civilizations in the Middle East, mainly the Egyptian civilization.

Gold has been used as a currency since 3000 BC. However, it was only at the end of the 18th century that it acquired universal monetary status, with most of the gold produced worldwide being absorbed by the states themselves, for the minting of currency and bank reserves, in order to ensure a balance in international trade transactions.

In the Middle Ages, this element played a very important role, a very famous element known as the "Philosopher's Stone", discovered by the alchemists of the time who tried to convert any metal into gold. Indirectly, this search contributed to the development of Chemistry, Medicine and Metallurgy.

The "Gold Cycle" era, at the beginning of the 18th century, already showed some historical records, such as the exploration of gold in Brazil, albeit in its infancy. In fact, there are reports about the region of Paranaguá, in Paraná, at least a few decades earlier, and also about the exploration of deposits in São Paulo since the 16th century. However, the boom occurred with the discoveries in the region of Minas Gerais, at the end of the 17th century, when gold became the main product extracted from the Portuguese colony, replacing sugar cane.

The unit of weight used to measure diamonds and precious stones, which also applies to gold in terms of its purity, is the carat (kt). Therefore, it should be noted that one carat corresponds to 200 milligrams. However, pure gold is 24 carats, although it is very difficult to find gold pieces with this carat, due to the fact that the material itself is quite malleable. Because, if it were manufactured with all its purity, the material would deform due to its fragility.

In Portugal, the maximum permitted gold content in a piece of jewellery is 22kt, but the vast majority of national jewellery is made of 19.2kt gold. In other words, it cannot be said to be truly pure in the true sense of the word, as it is made up of an alloy of 80% gold mixed with 20% other materials, in order to guarantee the colour and hardness of the piece. It is known that Portuguese gold is, in fact, of superior quality and is, without a doubt, a symbol of wealth and economic value, as it is easily transformed into financial liquidity, that is, into very attractive financial assets.

All gold in Portugal passes through the Portuguese Assay Office, which is the official technical service integrated into the National Mint. This service ensures the testing and marking of articles containing precious metals, as well as the affixing of the mark guaranteeing the legal fineness of these articles, and also exercises other powers provided for in current legislation, with complete independence from any activities in the sector.

For 19.2kt Portuguese gold to be considered genuine, the piece must display the following Assay and Responsibility Marks. The Assay Mark is the oldest form of consumer protection. This is the only way to attest to the legal compliance of articles for their introduction into the market, thus providing an advantage and security for the consumer. It also allows the identification of articles marked by the Portuguese Assay Office.

Currently, more than half of this wealth is deposited outside the country: 48.7% in the United Kingdom and approximately 6.2% in the United States. Only the remainder, around 45.1%, remains in the vaults of the Bank of Portugal. Portugal is therefore the country in the world with the 16th largest gold reserves, which were valued at more than one billion euros in 2022. According to data from the World Gold Council, Portugal holds 382.6 tons of the precious metal, an amount that has remained unchanged since then. The gold bars held by the Bank of Portugal have been increasing in value over the years.