History of gold trading & forex
History of gold trading.
Gold trading has a long history, and since its discovery in ancient times, became the gold standard of wealth and social status in many societies where began to be used as currency. And still uses the gold to the present day as an important trade and business.
States are estimated at gold as a measure of wealth and the basis for the exchange. Iqdralofrad and gold as collateral as the paper money does not always have the same degree of confidence.
Mazel gold and influential in global financial markets today and will remain so in the future.
Bretton Woods Agreement.
The Agreement was signed at Bretton Woods after World War II to control the global Forex market and to maintain its strength. Signatory states to the Convention to keep the values of their currencies in a narrow range against the U.S. dollar and an equal rate of gold. Thus, the dollar has gained center stage as currency and economic power shifted from Europe to America.
In 1971 dismantled the Bretton Woods Agreement, when the U.S. dollar can not be replaced with gold. And began the forces of supply and demand in the currency market control. And started new financial instruments and free trade to emerge.
The gold standard monetary system where the economic unit is the standard adopted by the constant weight of gold.
According to the standards gold, paper currency issuers guarantee to buy back paper money on demand that amount of gold. Governments that employ such units of account, which will replace cash gold leaves involved in a relationship with another currency - fixed.
Supporters of the gold standards say that more resistant to the expansion in credit and debt. And reverse the currency issued by the Government of non-coverage of the gold-backed money can not be random buffeting on the basis of decisions of the government. This restriction prevents the inflation of industrial output of the devaluation of the currency. It is assumed that removes this "doubt as to the currency" and to maintain a credit issued by the monetary authority and encourage lending. In spite of this, the countries that do not follow the gold standards 100%, such as those used in paper currency in circulation simultaneously fought in the debt crises and economic depression in its history through the use of central banks in the circulation and Tdhm currencies. The United States experienced a recession during this period of great panic in 1819 after he became the second national bank by Medina in 1816.
And became the gold standard is not used in any of the States were replaced by government-issued currency is not covered. Gold is still employed by private institutions to offer gold coins, which are used digital gold grams as money approved
The current picture looks quite different since the beginning of the eighties began to computers and technology controlled on the evolution of the foreign exchange market. Today, traders and brokers all over the world can be deliberate currency in the market. And is now considered a gold coin, like any other currency can be traded as the value or price expressed in U.S. dollars - which can buy or sell gold against one U.S. dollar.
And the history of trading in gold tells the story of an attempt to make global trade - especially the Forex market - easy and balanced. To learn more about the use of gold as an investment tool.
Hazard warning: please note that Forex trading (Currency Trading) involves substantial risk of loss, and may not be suitable for everyone.