History of Gold as Payment Instruments
Monday, March 30, 2015
Turning Gold Becoming Money
Gold is one of the most dynamic elements of a modern economy and some people may find it funny that the oldest form of physical commodity value is still growing today. The first gold coins were produced in 700 BC and since the precious metal has been used as an element of the main exchange. The fact that the rare and highly valued gold makes the perfect way exchange,
regardless of what items are interchangeable. History convert gold into money spans over a period of 2600 years and a turning point in the history of gold is 1971.
How to Become a Gold Paper?
Throughout history, gold and silver coins evolved through a process of debauching. The coins began to be made of gold and other metals, making the values of the actual currency fluctuate all the time. The process of converting physical gold into money begins when the goldsmith, which is used to store the gold for other community members for a fee, began to issue a receipt for storage. The idea quickly spread acceptance as it was easier than carrying an actual metal with them. People are getting used to the idea of paper money. Goldsmiths gradually turned into bankers and currency evolutionary process continues to evolve.
Why Gold Close Window?
August 15, 1971 is the day when the "Gold Window" shut down by US President Richard Nixon. Since then, paper money can no longer be converted into gold, a fact which took the precious metal from currency exchange. In order to understand why the situation with gold in the economy reaches this point, let's take a trip back in time to the time when bankers saw an opportunity to replace metal with paper money. Because they have the power of issuing receipts for gold, bankers think produce revenues that more than the amount of gold they hold. But, as you might expect, this practice is also becoming popular and bankers immediately begin lending revenues to the government and the ruling beginning of the era.
Story And New Regulations Regarding Use of Gold
Britain is a country where bankers created the first central bank. The main objective of the bank as it is to lend money to the king, but also served as a refuge for those bankers who spend more money than they can redeem for gold. However, it became clear that this practice has a negative impact on the economy of the country. This leads to the appearance of the "Bank Act Peel", which states that the bank is not allowed to issue paper money more than the gold reserves they actually have. Thus, the importance of gold as a determining factor in the global economy remains high throughout all the modern financial history that ever existed in the world.
What Do You Know About Gold Modern?
An interesting evolution of the price of gold began in 1934, when gold is priced at $ 20. In this period until 1971, gold prices remain around $ 35. However, with the changes taking place in the global economy, the price of gold reached $ 300 and the price is fixed at on or very close to this threshold. Various factors in world geopolitics has the effect of each on the evolution of modern gold price.
Can Gold Controlled?
Have you ever thought about gold when you are going to work or while shopping? Although modern society we see gold as a fashion item, the state still relies on the strength of precious metals to maintain their economic balance. We may not see gold in the stores, while paying our taxes, or when taking a loan from the bank, though gold is a deep element involved in all of these actions. It is fair to say that, throughout human history, we are often controlled by the precious metal, and not vice versa, as most people believe it is.
But if the gold price can not be controlled, online traders today are not too seriously worried about what would happen that by confirming the function of gold as money, gold can actually be present as a means of earning a living, the main source of daily income for the daytrader gold. They really do not care about other than that gold can still be relied upon as a promising source of livelihood. This is the impact of modern gold involving technology that may be made of gold is becoming increasingly difficult to control.