Article Side

Online Article Directory!

Hello Guest! Login or Register to submit articles!

Making the move from gold to fiat currencies

By David Ricks Subscribe to RSS | May 2nd 2012 | Views:
loading
 
  



One of the most ancient forms of money is that of gold. This has been used a monetary system by people who wanted to buy something as well as by nations that wanted to barter on a larger scale. A gold standard is simply a monetary system whereby paper currency, which has its value directly based on a cache of gold, is in circulation. Currencies that are based on a gold standard are also fixed in comparison with one another making it easier to predict a change in its value.

A different form of the gold standard is that of fiat currency where paper money is directly fixed by central banks in a country and can go up and down in value depending on the supply of money that is in circulation. When a reference is made to gold standard, it is generally in association with the International Gold Standard that was set up in late 19th century. This was started by a silver currency crisis originating in England and moving onto the states. The silver, the International Gold Standard came into effect in 1871 when a unified Germany put for the Reichsmark as a strong gold standard currency. By the turn of 1900, almost the whole world began to follow the gold standard.

The first time the gold standard took a beating was in the World War I. Britain found the cost of the war prohibitive and moved from the gold standard to that of fiat currency. As per the conditions of the Treaty of Versailles, Germany too ended up surrendering a huge portion of its gold store. One of the major side effects was that it did not have enough to remain on the gold standard and being the industrial power that it was, needed to make the shift to fiat currencies as well.

By the 1920s, most countries had made the shift to fiat currencies, whereas Germany and Britain tried going back to it again. The International Gold Standard was finally put to rest in 1933 at the London Conference. This happened when almost all the nations at the conference were unable to come to a consensus as to what the value of gold should be.

With the arrival of the fiat currency, nations were able to expand on their global trade rather significantly. Because gold and its supply was slow to grow, it resulted in being quite deflationary. In fact, the US suffered from a deflated economy for 14 years after it shifted away from the gold standard.

David Ricks - About Author:
Welcome to Gold Buyer Austin Texas, We are the in famous gold buyers in Texas. You can sell gold to us at very comfortable price. Our Years of combined experience and expertise in dealing with precious metals set us apart from the competition. We are also deals in cash for gold.

Share on Facebook Tweet It Stumbleupon this post This post is delicious !

Article Source:
http://www.articleside.com/jewelry-articles/making-the-move-from-gold-to-fiat-currencies.htm

Related Jewelry Articles Subscribe to RSS

Want to buy gemstone rings or gold rings? Check out online options
Published by AngeloEverton on February 21st 2012 | Jewelry
The demand for jewellery will not be down as long as human race continues to exist. The price of gol...
 
British Gold Refinery is best for your gold
Published by Ahmadgill on January 12th 2012 | Jewelry
British Gold Refinery is a largest company that is serving to the costumers from a long period of ti...
 
Add new flavors to life with vintage gold rings
Published by Harry Smith on December 6th 2011 | Jewelry
Follow the trend and keep the favorite designs on top of selection, it will make everything exceptio...
 
Get cash for gold and diamond jewelry at Buffalo, New York
Published by Rayon William on May 2nd 2012 | Jewelry
There Are More Opportunities Than Ever To Get Cash For Gold. If You Want To Sell Your Gold, It Is Wo...
 
Hunting down the best handcrafted gold jewelry online
Published by Ashley Carron on March 21st 2012 | Jewelry
The most important aspect of a woman’s beauty is the accessories she wears with the kind of design...
 
Making the move from gold to fiat currencies
Published by David Ricks on May 2nd 2012 | Jewelry
One of the most ancient forms of money is that of gold....
 
Astonish your persona through White gold wedding bands
Published by Harry Smith on April 16th 2012 | Jewelry
Some of the finest collection of wedding jewelry can be purchased from online stores who are making...
 
How much is gold worth UK.
Published by Kaisar on February 1st 2012 | Jewelry
We don’t only buy gold which is in excellent condition, we also by scrap gold regardless of what e...
 
Vintage gold rings women’s greatest pal on Valentines Day
Published by Harry Smith on February 13th 2012 | Jewelry
Jewelry plays a vital role in women’s life; it is the ultimate interest for them since prehistoric...
 
Vintage gold rings: marvelous designs to astonish your personality
Published by Harry Smith on May 15th 2012 | Jewelry
Classic patterns of jewelry are called as vintage; it is a brand of jewelry liked by people of all a...
 
Approach to vintage gold rings collection
Published by Harry Smith on March 5th 2012 | Jewelry
Where to find vintage jewelry pieces in modern world, it is a big point of worry for customers...
 
Look in support of hottest patterns of vintage gold rings
Published by Harry Smith on January 2nd 2012 | Jewelry
Everyone is interested in purchase of vintage gold rings, mainly because it carries superior designs...
 
Factors influencing gold price rise
Published by Aaron Babcock on March 19th 2012 | Jewelry
For investors who are doing so for the first time – investing in a commodity like gold can be quit...
 
Why some places have more gold deposits?
Published by Adam Bailey on February 28th 2012 | Jewelry
Gold is a precious metal that is highly sought after ever since man came to know of its existence. O...
 
Exchange cash for gold to resolve cash problem
Published by Caseylisa on July 3rd 2012 | Jewelry
Finding cash for gold is not difficult. Only you will have to find the right buyer for this job....
 
Feel charismatic pleasure of vintage gold rings
Published by Harry Smith on December 26th 2011 | Jewelry
Find ways for betterment of looks and at the same time get away for a bash with charismatic appearan...
 
Classic vintage gold rings for silky fingers
Published by Harry Smith on July 18th 2012 | Jewelry
For women special designs of vintage rings has been designed, we all know how smooth their fingers a...
 
Sense the magnetism of vintage gold rings at engagement
Published by Harry Smith on November 29th 2011 | Jewelry
Engagement is the most wonderful day of a person’s life; people spend lots of money and time...
 
Understanding the fluctuating prices of gold
Published by Aaron Babcock on March 19th 2012 | Jewelry
Just as the price of any other commodity would, that of gold constantly fluctuates. For those who pl...
 
How the Middle East influences the price of gold
Published by David Ricks on May 2nd 2012 | Jewelry
Of late several Middle Eastern countries seem to have erupted into internal revolutions....