First of all, after the combination of gold and human social life, it has a great relationship with the economy, that is, gold has an economic attribute that is difficult to remove. With the exchange of gold with other commodities for thousands of years, more and more people pay attention to the unique attribute of gold, that is, eternity. Gold has gradually become a constant used by human beings to measure the economic value of other commodities.
Secondly; The nature of gold as a natural currency. In the long test of historical years, in ancient times, when chemistry and physical science were not very developed, people deeply realized the natural nature, unchangeable natural quality and social value of gold with the simplest perceptual knowledge obtained from long-term social practice.
After gold became money, or before there was money in ancient times, gold, as a constant to measure the economic value of all commodities, assets and barter, had the social responsibility of money, and how much gold it owned indicated how much wealth the owner had. The constancy and scarcity of gold is one of the most important factors that people cannot change the monetary function of gold so far. If gold is like ordinary soil or changeable everywhere, then it can't be valuable and can't be a currency. When gold became a currency, the economic attribute status of gold was sublimated again, and the social status of gold was also upgraded again, which cannot be changed so far.
Furthermore; The life of paper money in any country can't be predicted for a long time, no matter from the historical point of view or from the current situation of financial currency issuance in various countries. Even the former superpower, the Soviet ruble, turned out to be extremely strong and would become waste paper overnight. In particular, the face value and circulation of banknotes issued by many countries are too easy to be manipulated at will. Moreover, like the US dollar, the largest international reserve currency in the current international financial and monetary system, its currency circulation is too random, and Americans can send as much as they want, further increasing the authority of gold. Not only can gold not be produced indefinitely, but no matter how the world changes upside down, no matter how it changes naturally, no matter where it is placed, it will never change color.
Fourth, although the currencies of some countries and regions are international currencies, they cannot be used in many countries or exchanged for their own currencies. Even the US dollar, which now dominates the world financial and monetary system, is not universal and convertible in many countries. However, gold can be exchanged for local currencies all over the world, said Yao Zhang, a gold investment analyst. Some countries do not allow gold to be traded and exchanged freely, but among the people, the exchange between gold and local currency is still unimpeded. Even if the official does not allow it, the people still recognize the value of gold. In many countries, ordinary people don't know anything about international currencies such as US dollar, euro, Japanese yen, British pound and Swiss franc, but they absolutely recognize the value of gold.
People can buy local or international commodities and their daily necessities around the world, or exchange gold for international currency or local currency. Gold is still recognized as a hard currency in the world.
Fifth, in today's world, among more than 190 sovereign countries, the currencies of more than 180 countries have no international status. Most of the currencies of these countries are not even recognized in the international financial market. However, in the case that the currencies of these countries are not recognized, it is necessary for these countries and people to get market recognition when they take out gold in the international financial market.
Thousands of years of history foretell the future. In the foreseeable future, gold will certainly play the role of "international currency" that can be cashed in all countries in the world, and it can have the special function of exchanging currencies of all countries in the world. Therefore, I call gold "the king of money". Moreover, the status of gold as the king of money is now unshakable.
Sixth, gold is still an important financial tool, which has the function of mortgage financing in the international financial market. Any country, group, individual or enterprise can use gold as collateral for financing as long as it owns gold. If a person or an enterprise needs financing, the gold in hand is a relatively easy tool to obtain financing. Because the price of gold is easily recognized by banks, credit companies, mortgage companies and other financial companies. Other commodities, such as real estate, real estate, calligraphy and painting, jewelry, jade, etc. , has a certain value and a certain market, but because of the huge differences between countries, regions and cities, its price evaluation is difficult. Gold not only has the function of investment collection, but also has the function of financial instruments that can be easily mortgaged and financed in the capital dismantling market.
Seventh, the world's central banks and the International Monetary Fund still regard gold reserves as one of the important reserve currencies, which objectively set an example for global investors to invest in gold and played an endorsement role for gold hard currency. It shows that gold has not completely lost its monetary status and role with the entry into force of Jamaica Agreement. Who can say that it is superstitious for central banks and the International Monetary Fund to prepare gold?
Eighth, the massive reserves and increasing purchasing power of people all over the world have the same effect as the growth of purchasing power of gold reserves of central banks, making gold still a hard currency recognized by the world more than any currency. Asians have a natural trust in gold, and their pursuit of gold, private reserves and purchasing power are far greater than the national reserves and purchasing power of governments. From 197 1 up to now, the history of gold bull market for more than 40 years shows that when gold has not completely lost its function of measuring money and exchanging with commodities, increasing value and preserving value, people would rather believe in gold than believing in spamming IOUs.
Although gold has been legally abolished by the International Monetary Fund, its status as the king of money still exists objectively and remains a trustworthy hard currency for people and governments all over the world.