Why Gold is an international popular currency?

September 18, 2023

1, after the combination of gold and human social life, it has a great relationship with the economy, that is, gold has economic attributes that are difficult to remove. Gold has gradually become a constant in the measure of economic value that humans use to measure other commodities.

2. Gold has the properties of natural money. Gold's timeless constancy makes it the best raw material for money.

3, the life of any country's banknotes, whether from the historical point of view, or from the current situation of financial currency issuance in various countries, is unpredictable in the long run. Even the Soviet ruble, once a superpower, was so strong that it would become worthless overnight. In particular, the face numbers and issuance of banknotes issued by many countries are too easy to be manipulated at will. Moreover, like the dollar, the largest international reserve currency in the current international financial and monetary system, its currency is too arbitrary, and Americans can issue as many as they want, which increases the authority of gold. Gold is not only impossible to produce indefinitely, but it will never change, no matter how the world changes, no matter how nature changes, no matter where it is stored.

4, Although the currency of some countries and regions is an international currency, it is not common in many countries, nor can it be exchanged for its national currency. Even if the US dollar occupies the dominant position in the world financial and monetary system, it is not common or convertible in many countries. However, gold can be changed into the local national currency in all countries in the world, and some countries do not allow the free sale and exchange of gold, but in the people, the exchange of gold and local currency is still unimpeded. Even if the authorities do not allow it, the people still recognize the value of gold. In many countries, the general public is completely ignorant of international currencies such as the dollar, euro, yen, pound, and Swiss franc, but they are absolutely convinced of the value of gold.

5. In today's world, the currencies of more than 180 of the 190 sovereign states have no international standing. The vast majority of these countries' currencies are not even recognized in international financial markets. However, in the case that the currencies of these countries are not recognized, these countries and people take out gold in the international financial market, it must be recognized by the market.

6. Gold is still an important financial instrument, with the function of collateral financing in international financial markets. Any country, group, individual and enterprise that owns gold can use gold as collateral for financing.

7, the world's central banks and the International Monetary Fund still regard gold reserves as one of the important reserve currencies, objectively, for the world's investors to do the demonstration role of investing in gold, the role of gold hard currency endorsement.

8. The combined effect of the large reserves of gold and the increasing purchasing power of the people of all countries, and the increasing purchasing power of central banks for gold reserves, has made gold the world's most recognized hard currency to this day. The Asian people have a natural sense of trust in gold, and the pursuit of gold by the people and the amount of private reserves and purchasing power are far greater than the amount of national gold reserves and purchasing power of governments.

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