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In the 1800s, people in mining towns in the west often paid for goods with gold nuggets or gold dust. what was the function of gold?

User GuyZ
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It was used as a currency.

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User Fabianfett
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During the 1800s, the goods and services were paid with the use of gold nuggets and gold dust because the gold in this era was used as a currency. Money was not yet available this time and gold is believed to have a high value so it was used as payments. 
User AndrewSwerlick
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