Two angles to maintain gold

1. Treated as the same metal: Gold has good ductility, low chemical activity, and good electrical conductivity. It is suitable for making jewelry or dentures, as well as some electronic parts that require precision and reliability. However, these demands alone are not enough to support the high price of gold. The chemical dullness of gold makes it 1. As a metal: gold has good ductility, low chemical activity, and good conductivity. It is suitable for making jewelry or dentures, as well as some electronic parts that require precision and reliability. However, these demands alone are not enough to support the high price of gold. The chemical dullness of gold allows it to be fully recovered, which increases the supply relatively. If it is just regarded as the same metal, gold should be empty. What really makes gold a 'precious' metal is its second (and main) use. 2. Treated as one kind of currency: Because of its uselessness and chemical bluntness, it is just suitable for accumulating and 'preserving valueThe gold standard was founded by Newton, the first president of the Bank of England, and later created the richest and most powerful British empire in human history. Therefore, the gold standard replaced the silver and copper standard in the early 20th century and unified the world. Because of the gold standard, central banks in various countries need to accumulate a large amount of gold as a reserve for issuing banknotes, resulting in a large demand for gold. Although the gold standard collapsed in 1971, it is only 35 years away, and its influence has not faded. More than half of the people in the world treat gold as a currency. But the biggest problem with gold as currency is that gold does not generate interest. It is a currency with zero interest rates. Therefore, once the currencies of various countries raise interest rates, making the real effective interest rate greater than zero, the value of gold will relatively deteriorate, and the 'exchange rate' should depreciate. Central bank presidents are most sensitive to this issue. Therefore, since the 1980s, gold has been going long and short. It is the masterpiece of central banks. Everyone desperately sells gold that cannot generate interest (and also requires high vault custody and preservation costs) and replaces it with interest-bearing gold. Of dollars. Previous article: Identify gold through scientific and technological means Next article: Don't do these things to gold