Gold has always been highly valued by the population of the earth due to a number of its own parameters.. It became necessary in currency circulation at first as an independent form of funds, and later as a base for the production of cardboard banknotes. Despite the liquidation in the 70s. XX century monetary system of the gold standard (Bretton Woods system), the alloy does not cease to maintain a stable position in the world. Not coincidentally interstate banking benchmarks Basel III, which are planned for distribution 2022 G., classify gold as a first class asset.
The essence of the golden standard
Gold has a number of specific parameters, which make it comfortable to use as a means:
- recognized value;
- substantial price of small volumes;
- durability;
- convenience for coin production;
- the best amount of supplies in nature.
The individuality of gold led to its use for payments and storage of funds as far back as the Old World.. Bars of gold were used as funds in Egypt, Assyria and other states. Later came the time of gold coins. 1-their standards were minted in Lydia from above 2,5 thousand. years ago. During the time of iron funds, along with gold, silver and copper circulated., which had the least value.
With economic growth and its globalization, the direct introduction of gold coins began to be combined with the circulation of cardboard funds., which are guaranteed to be exchanged for gold in a certain proportion. This was facilitated:
- difficulties in transporting huge amounts of gold;
- danger of counterfeiting;
- wear of gold coins.
Evenly, paper money began to push gold coins out of circulation.. This phenomenon obeys a pattern, by which more high-quality funds will be squeezed out of circulation by the least high-quality, — Gresham's law.
Gold standard in the Russian Federation
In the Russian Federation, there were two attempts to introduce a gold standard for the ruble.
1-one of them was undertaken by the head of the Ministry of Finance Sergei Witte in 1895-1897. The main personalities of his changes:
- open circulation gold coins;
- fixed exchange rate of cardboard credit notes for gold;
- The State Bank was given the right to conduct operations with gold coins.
The result of the change was an increase in confidence in the ruble, receipt of foreign investments and strengthening discipline in the field of municipal money. The gold standard of Sergei Witte successfully survived the first revolution of 1905-1907. and the Russo-Japanese War. Finished in 1914 G., when the printing press was launched by the cabinet to cover military expenses.
2-The first reform took place in 1922-1924. under the direction of the Soviet head of the Ministry of Finance Grigory Sokolnikov. In the process of changing into circulation, a new currency unit was launched - chervonets. Some of them were issued in the form of gold coins., equated to the pre-revolutionary gold ten-ruble coin, and part - in the form of banknotes, on which was written, what one gold piece contains 7,74 grams of gold. Foreign trade operations became the main sphere of introduction of chervonets. The collapse of the NEP led to the end of the 2nd attempt to introduce a gold monetary standard in the state.
History of the gold standard in England and the USA
In the UK, the gold standard was introduced in 1816 G. Sovereign coin in circulation, Including 7,32 gram of pure gold, equal to one pound sterling. IN 1871 G. the coin began to be minted outside of Britain: originally in Sydney, in Australia, and later in other countries of the British Empire. IN 1914 G. the gold standard has been phased out, because it limited the ability to issue paper money to finance military spending. In 1925–1931. an attempt was made to restore the gold standard, but it was allowed to convert banknotes into gold bars, not coins.
In the United States, the gold standard was established in 1900 G. The dollar was equal to 1,505 gram of gold. IN 1933 G. by Franklin Roosevelt's decree, this attitude was changed: dollar was equal to 0,888 my gram is gold. This ratio was valid until 1968 G. Richard Nixon ended the gold standard in the United States 1971 G., when he announced the termination of the guaranteed convertibility of the dollar into gold.
Rejection of the gold standard
IN 1944 G. an agreement was adopted on the basic principles of post-war monetary policy (Bretton Woods system). According to them courses currencies of most countries were fixed against the dollar, for which conversion into gold was guaranteed. The basis of international exchange rates was the dollar system: the dollar was backed by gold.
Despite all the advantages of the gold exchange standard system: steadiness, responsibility and predictability of exchange rates, it limited the flexibility and scope of monetary policy for central banks. The result was its liquidation in 1971–1975.. and implementation with 1976 G. Jamaican system, based on free exchange rates and the decoupling of money from the gold content.
Despite the abolition of the gold standard, gold itself as an investment element retained its value. It amounts to 25% in the international reserves of the Central Bank of the Russian Federation. In connection with the policy of printing money, conducted by the Democratic administration of US President Joe Biden and other countries, the attractiveness of gold will increase. We have already written about the features of investing in this precious metal..
