Gold - the Standard and the Investment

Introduction bills has served as medium of exchange and a bloodline of value since the days of the pharaohs, dating back nearly 5000 years. prosperous coins were used by the Greeks and the Romans; this tradition passed on to the mercantile epoch into the nineteenth century where the great increase in share led to a need for a formalized remains of settling international trade balances. Thus, the Gold Standard was born. Since the terminal of the Gold Standard in 1971, Governments have been free to sign as much money as they please. In recessive times, as the US is currently experiencing today, the return on bonds, equities and echt estate is not adequately compensating investors for risk causing the rent for metal(prenominal) (and some other commodities) to sky rocket. Following the rules dictated by supply and demand, gold has recently reached a record exalted of over $1000 per ounce. It has been adopted as a type of money, as a role in societys customs, a p keep backr of value, a portfolio diversifier, a currency reserve and part of many industrial applications. In recent times, gold has served well as a hedge from falling equities balance out ones portfolio reducing the risk in case of an economic slowdown. This holds true today and is a perfective aspect reason why gold is and has been such a grave investment choice.

The Gold Standard: Pre-WWI The Gold Standard was a domestic standard, regulating the quantity and growth place of a countrys money supply. Since new production of gold would only if add a small fraction to the accumulated stock, the Gold Standard assured that the money supply and thus, the price take would not vary much. It was to a fault an international standard, because it allowed the valuation of a countrys currency in terms of other countries currencies hence leading to a fixed exchange rate system. Predating the Gold Standard was a silver standard which also had its heritage dating back thousands of years ago to look in facilitating trade. This... If you want to get a full essay, tramp it on our website: Orderessay

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