Historically, the role of gold is mainly as a special currency, and it will also be used to smelt and manufacture various articles. In ancient times, gold was more expensive because of its limited mining ability. It is also a special storage and investment currency, especially now. Although the current collection technology is much advanced, it also leads to an increase in the inflow of gold, but this does not affect the status of gold in people's minds at all.
Looking at it now, it is the Taiping period, and gold will fall in price more or less. Then why? I think there are several main reasons: 1. In peacetime, people can study carefree, so that all kinds of gold mining techniques are constantly updated. The discovery of gold mines and the collection of gold are very convenient, efficient and of good quality, which leads to a steady increase in the amount of gold flowing into the market and a natural decline in the price when there is more supply; Now, for us ordinary people, the main function of gold is storage, and other uses are not great. We have various currencies every day, so the demand is reduced. To say the greatest use, I think industry uses more; 3. In peacetime, the country only stores and exports daily, which can completely achieve a balance. So at present, the necessary demand for gold has decreased and the price has also fallen.
In troubled times, the value of gold doubled. Why? I think: 1, the soft power competition between countries, gold, a special currency recognized by human beings, is very important, so there is a great demand; 2. People will think that it is more appropriate to hold gold than to hold all kinds of banknotes that don't know when to depreciate, so they will short gold whenever they have the chance. In order to cope with all kinds of unexpected situations, there will be great demand in industry to produce more things. In this case, the supply will soon fail to keep up with the demand, not to mention who has time to collect gold and flow into the market in troubled times. Taken together, the value of gold naturally rose.