On the following my professor about the
free banking, I am really interested in the topic named "Free Banking and
Gold". Basically, he gave directions for one of his followers
to find the answer of himself question "whether a gold standard is essential for free
banking". You could assess to those great ideas at the link: http://financelongrun.blogspot.com/2012/01/free-banking-and-gold.html
Actually, this
post did remind me of one of my early research when I was a BSc student. As
many finance students, I have been wondering why an incredible metal such as gold plays such an
important role in the financial world and what is its future. For the time
being, I would like to share with you my own research in the Gold subject.
The gold
price has increased dramatically in recent years. Especially in 2011, the gold
price continuously broke through its ceiling price and got new highest point at
1889.70 USD per ounce (World Gold Council, 2011, August). It leads to many
questions. For instance, why a metal like gold can play an important role in
today finance system and can it be the international currency in the future? In
the next 3 following posts, I am going to discuss why gold acted as money in
the gold-standard and why people changed to fiat-money (money without backed up
by commodities). Then, I will take a look into the differences under gold
standard and fiat money period. Finally, I am going to present the current gold
demand and supply, point out some major situations in the world monetary
system now to discuss the question the future of gold.
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