Oct 20 2010
One of the most important ways to save people in extreme situations is a stable economy, which helps to eliminate hunger, protect people and cope with disasters. But money is not very stable to all kinds of changes. It is similar to the market system that allows it to drop or increase in price.
Sometimes we notice that prices for different things rise from time to time. The reason is not because they become more expensive, it is because the money itself worth less. A country where money supply is not tired to gold, has inflation. If the currency of the country is secured by the gold stocks so the crisis is actually invisible and the national currency is stable to fluctuations.
Watching the prices on gold during the past years you can notice that they are moving all the time. Though it is not the price of gold that is moving, it is the price of money against gold moves up and down. Virtually the gold price remains steady for many centuries though the amount of money you need to buy gold changes from time to time.
You may enquire why there are so many cases of economical crisis if the quantity of existing money is equal to the gold. The thing is that the world economists wish to raise the value of the money and the ways they used to do so cause all kinds of economical disasters where common people suffer. Instead of curing the economic situation of the country by increasing the gold stocks, economists choose the way of inflation releasing more money. As a result all becomes expensive and people don’t have enough funds to buy things. Money depreciates more and more and all this leads to poverty and chaos.
Now-a-days there is so much money in the world, that it is impossible to associate it to the rate of gold, because it would increase the price of gold in a million times. For that reason such methods as inflation is necessary to do in order to preserve the stability of the world economy.
The appearance of electronic money changed the situation. Banks have a lot of virtual funds that are not tired by any gold reserve. So we can tell that the present price of gold has being purposely significantly decreased.
Gold is one of the most traded commodities in
Singapre Forex market. Silver and Oil are traded too but their popularity are much lower. There are also many other commodities like Platinum, Rice, etc offered for trading by many
Singapore Forex brokers. Trading commodities is much different than currencies. Commodities market is more volatile and usually has higher spreads that requires any
Singapore trader be more careful in using his trading strategy.
Aug 26 2010
One of the most important methods to save humanity in extreme situations is a stable economy, which helps to overcome hunger, protect people and survive with disasters. But money is not very stable to all kinds of changes. It is related to the market system that allows it to drop or increase in price.
Sometimes we see that prices for different products rise from time to time. The reason is not because they become more expensive, it is because the money itself worth less. An economy where money supply is not supported by gold, faces inflation. If the currency of the country is secured by the gold stocks so the crisis is actually invisible and the national currency is stable to fluctuations.
Watching the prices on gold during the past years you can notice that they are changing all the time. Though it is not the price of gold that is moving, it is the price of money against gold moves up and down. Virtually the gold price remains firm for many centuries though the quantity of money you need to buy gold changes from time to time.
You may have a question why there are so many cases of countries’ bankruptcy, inflation if the quantity of existing money is equal to the gold. The thing is that the world economists want to raise the value of the money and the methods they used to do so cause all kinds of economical disasters where common people suffer. Instead of improving the economic situation of the country by increasing the gold stocks, economists choose the path of inflation releasing more money. As a result all becomes expensive and people don’t have enough cash to buy things. Money devaluates more and more and all this leads to poverty and chaos.
Currently there is so much money in the world, that it is impossible to equate it to the rate of gold, because it would increase the price of gold in a million times. For that reason such ways as inflation is necessary to do in order to preserve the stability of the world economy.
The usage of electronic money changed the situation. Banks have a lot of virtual accounts that are not tired by any gold reserve. So we can say that the present price of gold has being deliberately significantly decreased.
Gold is one of the most traded commodities in
Singapre Forex market. Silver and Oil are traded too but their popularity are much lower. There are also many other commodities like Platinum, Rice, etc offered for trading by many
Singapore Forex brokers. Trading commodities is much different than currencies. Commodities market is more noisy and usually has bigger spreads that requires any
Singapore trader be more careful in creating his trading strategy.
RSS FEED