Historically gold has been used as money. The value they had was the social acceptance behind them as a means of easing transactions. So wouldn’t mining more of it add more into circulation and lead to inflation (And with it a lower value of it’s value) back in those times? What gives?
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Yes it would.
The story of the King of Mali visiting Egypt illustrates it. Mansa Musa was the king of the Mali empire stretching across much of NW Africa in the 14th century. Passing through Egypt on his pilgrimage to Mecca he spent or gave away so much gold that it decreased its value in the country for a dozen years afterwards.
https://education.nationalgeographic.org/resource/mansa-musa-musa-i-mali
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