Archive · 17 Jun 2025
El Dorado: Venezuelan Town Uses Gold as Currency Amid Economic Hardship
In El Dorado, a town named after the mythical City of Gold, people use gold instead of money.
Because the local currency is losing value, they prefer to use gold.
Merchants weigh the gold to sell things like food.
Mining for gold is very hard work.
The miners dig up sand, then wash it with chemicals to get the gold.
The town has problems with crime and environmental damage due to illegal mining.
The town was founded because of a dispute over land between Britain and Venezuela.
Residents of El Dorado, Venezuela, use gold as currency due to limited banking services and the devaluation of the local currency.
Merchants in El Dorado price goods in grams of gold, with transactions ranging from small packets of maize meal to bags of groceries.
Mining in El Dorado is a difficult and hazardous occupation, involving back-breaking work to extract gold from sand.
The area faces challenges including illegal mining, organized crime, extortion, and environmental damage from gold extraction.
The town's history is tied to a territorial dispute between Britain and Venezuela over the Essequibo region.
- Who
- Residents and merchants of El Dorado.
- What
- Residents of El Dorado, Venezuela, use gold as currency due to limited banking and currency devaluation.
- When
- The current use of gold as currency is ongoing.
- Where
- El Dorado, Venezuela.
- Why
- Due to limited banking services and the instability of the Venezuelan currency.
Community
Merchants
Economy of El Dorado
Community
Community relies on mining for income and everyday purchases.
Merchants
N/A
Currency
Community
Residents value gold for its stable value, unlike the devaluing national currency.
Merchants
N/A
- Population
- 5,000 (approximate)
- Primary Employment
- Mining
- Goods Pricing
- Based on gold weight (grams)
- Gold Value (approx)
- $85-$100 USD per gram
- Territorial Dispute
- Essequibo region
- Key Metals Mined
- Gold, diamonds, iron, bauxite, quartz, and coltan