It seems they are based on their weight on how much they worth. It seems simple and easy to understand at first glance. Back in my former life we used some kind of papers to create our currency. Papers were printed in numbers to create exchange value for the worth of goods in the market.
Funny enough those papers themselves did not decide on the worth of the things, the market, supply and demand format did. Our currency simply reflected that value which in turn laid the ground for the birth of interest rate and debt based currency system. That much was understandable from the TV news.
This system eventually led to something called high inflation in some places because there was no real value backing their own currency system up. The main currency rate determined everything for the rest of the world that became overdependent over time. Thus, some of the countries own exchange rate made it harder for people who are in countries to survive everyday.
Reminding this made me curious on things. After all I never understood what was happening and why it was happening in the first place back then. All I know was what I've heard here and there. Looking back I had the chance to learn a lot of things. I just preferred to lay down on the bed and scroll through social as if time was reversible.
Lira turned her gaze to my hand, with just one glance it was easy to understand that she was enjoying teaching this topic. Maybe it was a topic she was deeply interested in. Her pupils were going back and forth between my hand and my face. After a little while, she turned her eyes to me. Raising her index finger.
Lira: "Young master. As you will understand their numbers are based on their weight, but that doesn't end here. The currency is made by the rarity of the metal it is based on."
I figured that much out though? Still, this only raised more questions to my head. Better to ask them straight out as we are on the topic. I am probably going to need these answers regardless. I want to understand this world as a whole before setting foot unto my goal.
Gilbert: "So, You mentioned gold before. What about gold? What role does it play here? It seems pretty pointless to add another currency method, doesn't it. So why is that there? Can you tell me about it more."
She nodded her head as if she was satisfied by the question. I could not make any sense to her behaviour for right now. But seeing her happy made asking all the worthwhile. It was best to ask someone overly-interested than a teacher as they say.
Lira: "Young master, It's actually the opposite. But let's start with why the gold is there in the first place. According to the official public knowledge, one gram gold is equivalent to a thousand grams of silver. That makes 1 gold worth as much as one thousand silvers."
It can make sense but still there was some stuff I could not connect the dots to. On gold is worth thousand silvers, but why don't we just use thousand silvers. Would not be easier to manage. We have pockets don't we
Gilbert: " I understand that part, however, couldn't we use silvers instead of gold?"
Lira raised her index finger before answering again. It seems she loves doing that while answering questions. I wonder if she does this when she was working too.
Lira: "Well, young master. You can. There's nothing that can stop you from doing that. You can exchange one gold to silvers and reverse is also possible. However, these coins are made by going through complex processes. Starting with miners, digging through mine to find gold and silver. Later that precious metals get melted and shaped by machines. These processes are also very expensive but both of the metals consume the same energy, resources and time. Throughout history, we as a civilization found this method by trial and error. Forging these precious metals gave us the idea of what we call today 'money'. I know, I explained a lot before explaining the question you asked. Still, I believe you will understand why I did that beforehand."
She seemed quite knowledgeable on the topic. I can feel that she understands that explanation doesn't make sense to me and left me on more confusion at the time but let's leave things on her hands. I believe that she found this way to be easier for her to explain and easier for me to understand.
Gilbert: "Is that so? What determines the exact value of the currency? I know they are precious metal but how do they work in the market?"
She seemed deep in thoughts after the question. She put his fist under her chin and crossed her legs, took a deep breath.
Lira: " You see, young master. Silver and Gold are valuable items. They are rare in a way, however, not that rare. Enough to keep producing but also enough to circulate and travel through hands and pockets of people. Thus keeping it valuable but also not extinct when declining on the world. Silvers can be produced more than golds. But It becomes harder to carry around when there is too many coins. As a solution they found exchanging for 1 gram of gold, in other words one gold coin."
It became more clear as she explained. But one particular thing, a question stood up in my mind. What determined 1 gold to be worth of a thousand silvers? Was it rarity, or something else? It feels quite familiar to the system from my former life, but this one was actually backed by something real. So there would be less crisis I assume.
Gilbert: "I want to ask two last questions Lira. Why one thousand silvers coins equals to one gold coin? Do you know why that is? And why it says five silvers instead of five grams of silver?"
She put her hands together on the table. Giving me a straight and serious look.
Lira: "Of course I do, young master. It's simple, it's because there are One grams of gold for every thousand grams of silver. At least that's what they say. For your second question, It's easier to say five silvers instead of five grams of silver. That's why."
I gave her the coins she put in my hands. She opened the sack to put the coins in it. I wonder how much did my father gave us as allowence. Knowing him he probably gave us what he thought as enough for a little trip.
Other than that her answers cleared the most fogs in my head, leaving me satisfied after learning one of the most important things in this world. The currency worked a lot like how it did for my previous life.
But this time instead of paper, there was real valuable items used. And their worth was constant. Even though I was grateful, what I originally wanted to know. Yes, I actually wanted to know if the prices were cheap.
Lira: "This currency system is used in all around the Yir by the way young master."
That was pretty interesting, using one currency method all around the planet. I wonder why and how they decided on that. It sure must have some benefits at least. Everything going on in this world was pretty interesting.
Maybe my desire to explore was speaking at the moment. To the natives of this, everything must feel normal and how it came to be. I wonder if they would do the same if they go to my former world. I can understand how little children feels learning everything for the first time.
The feeling of exploring something for the first time, that's how they perceived the world. Brand new and full of opportunities. It might be an illusion created by their nature, but it was real to them. It was the truth. I wonder If Lira sees me like a little child in a teenager's body.
I cant blame her even if she did though. I must be perceived as funny from outside. It would be better to not to be a laughing stock. Meanwhile I was losing myself in my little thoughts I saw the shop owner coming here. I panicked for a moment because I did not order anything. Maybe, it was better to ask for her recommendation.
Gilbert: "Lira, It seems you came here a lot. So what can you recommend me as the most delicious of this little restaurant?"
Lira took the menu table in front of her with excitement, walked her finger around on the menu. It seemed like she is selecting the best piece of order she can do for us. After a little bir of consideration, she finally took a deep breath as if she decided. She turned her face at me with her happiest cat girl on the planet face. She was sure in great spirits. Better not to destroy it.
Lira: "I always loved the oyster stew they made here, they put spices you would not see anywhere on it. It tastes quite unique why don't you try it young master."
I looked at the menu on the table to find oyster stew. It was labeled under the chef's favourite part. The price said fifteen silvers. Well, we probably have enough money to spend so I guess, I should not worry. The owner came to ask for our orders. He seems to be doing the waiter job too. I wonder If he is short on money or doesn't need one.
Owner: " What would you like to order, sir?"
Gilbert: "Can I take one oyster stew please?"
Owner: " Of course sir. How about you ma'am?"