The economic significance of Gold
The economic significance of Gold
Gold in terms of commodity production serves as a universal equivalent . Expressing the value of all other commodities, gold as the universal equivalent is of particular use-value , becomes money . World trade has allocated Gold as money because it has the best product for the money the physical and chemical properties: homogeneity, divisibility , persistence , portability (great value at low volume and weight ) , it is easy to process. A significant amount of gold used to make in the form of coins or bullion is stored as gold reserves of central banks ( the State) . Gold is widely used for industrial consumption ( in electronics , instrumentation , and other progressive sectors ), as well as the material for the manufacture of jewelry.
Gold originally was used exclusively for the manufacture of jewelry, then it began to serve a store of value and wealth creation , and sharing ( first in the form of ingots ) . Gold as money has been used for 1500 years BC. e . in China, India , Egypt and Mesopotamia, states , and in ancient Greece – in 8-7 centuries BC. e . In Lydia’s rich deposits of gold, in the 7th century BC. e . began chasing the first in the history of coins. The name of the Lydian king Croesus (reigned about 560-546 years BC. E . ) Became synonymous with incalculable wealth . In the Armenian gold coins were minted in the 1st century BC. e . But in antiquity and the Middle Ages, gold was not a major currency metal. Along with it the function of money carried copper and silver.
Pursuit of Gold , a passion for enrichment were numerous reasons for the colonial and trade wars , in the Age of Discovery pushed in search of new lands. The flow of precious metals in Europe after the discovery of America was one of the sources of primitive accumulation of capital. Until the mid- 16th century from the New World to Europe were imported mainly gold ( 97-100 % of the imported metal ), and with the 2nd third of the 16th century , after the discovery of rich deposits of silver in Mexico and Peru – mainly silver ( 85-99 %). In Russia in the early 19th century began to develop new gold deposits in the Urals and Siberia , and for three decades, the country ranked first in the world in its production . In the middle of the 19th century were discovered rich deposits of gold in the U.S. ( California ), Australia , in 1880 – in the Transvaal (South Africa) . The development of capitalism , the expansion of intercontinental trade strengthened the demand for money metals, and even though gold mining has increased in all countries, along with gold as money has continued to be widely used silver. In the late 19th century, there was a sharp decline in the value of silver as a result of improved methods of its production from polymetallic ores. The growth of world gold rush and especially to Europe and the U.S. from Australia and Africa accelerated the replacement of depreciated silver.
Reflecting the attitude of the people in terms of commodity production , the power of gold is on the surface of things as the relation of things , it seems natural intrinsic property of the Gold and produces gold and money fetishism . The passion to accumulate gold wealth grows indefinitely , is pushing for heinous crimes . Especially increases the power of gold in capitalism , when labor becomes a commodity . The formation of the global market capitalism has expanded the scope of treatment of Gold and made it the world’s money.
During the period of the general crisis of capitalism undermined the gold standard. In an internal appeal the ruling capitalist countries are irredeemable paper money for gold and banknotes . Limited or even prohibited the export of gold and its sale . In this regard, gold ceases to serve as a medium of exchange and means of payment, but , speaking as a perfect measure of value, as well as maintaining the value of the means of hoarding and the world’s money , remains the basis of monetary systems and the main means of final settlement of mutual financial claims and liabilities of the capitalist countries . Dimensions Gold stocks – an important indicator of the stability of currencies and the economic potential of individual countries. Buying and selling gold for industrial use , as well as for private hoarding ( saving) is on special gold markets . Drop of Gold from the free interstate market turnover has caused a reduction in its share in the monetary system of the world and, above all, in the foreign exchange reserves of countries ( from 89% in 1913 to 71 % in 1928 , 69 % in 1958 and 55% in 1969). An increasing portion of the newly mined gold comes to hoarding and industrial use ( in the modern chemical industry, rocketry , space technology ) .