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Throughout history, people have valued gold. It is particularly valuable when the value of one's own currency becomes worthless. Sometimes, governments print a lot of money to try to eliminate an economic crisis. This is very inflationary. The currency loses almost all value and gold becomes very valuable. Also, when there's tremendous deflationary pressure on the economy, gold is valuable. That is, when wages and prices are declining. Some of the things that you might want to look at on the internet are:
1. Germany prior to Hitler - see "Weimar Republic" for an example of hyperinflation. 2. See "The Great Depression" in the United States - 1929 - 1931 or so.
Gold did decrease in value but no where near what the US stock market did. Present day - gold prices increasing probably have a good deal to do with the war in Iraq. The US is spending more money than it's taking in. We are spending billions of dollars in Iraq. This is flowing out of our country.
Look up exports and imports on the internet and how the US dollar is effected. Also, look up "guns versus butter" as it applies to economics. Good luck!! This is an excellent question.
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How Gold affect the south african economy?
Gold affects the South African economy in a wide variety of ways. The South African economy is not doing well and is not very prosperous. The abundance of gold greatly improves the economy.
If an economy used gold as money its money will be?
If an economy uses gold as money, it's money will be coins.
What is the most important sector of the subsaharan African economy?
mining of gold, diamonds, minerals and nuclear related minerals.
What was the silver standard and the gold standard as they related to US history?
The silver standard and the gold standard refers to the ways the United States backed their money. For every dollar in the economy, there was a dollars worth of gold to back it up in a reserve. People could go and exchange their money in for gold if they wanted to. The same thing applied to silver.
What effect does gold have on the economy today?
gold in ca$h could be donated to schools and charities
How Gold affect the south african economy?
Gold affects the South African economy in a wide variety of ways. The South African economy is not doing well and is not very prosperous. The abundance of gold greatly improves the economy.
If an economy used gold as money its money will be?
If an economy uses gold as money, it's money will be coins.
Why a gold crash might be around the corner?
Gold, contrary to popular belief, is not an investment - it is a speculation. When the economy is limping, gold prices rise. When the economy is strong, gold prices fall. If the economy eventually recovers slowly but surely, gold will slowly but surely drop in price. If the economy should suddenly begin to recover strongly and rapidly, gold prices will fall through the floor.
What problems did Europeans face in using gold and silver coins?
Since the economy was based on gold and silver, the economy could not grow. It was stymied because of the lack of gold and silver...
How did the gold strike affect the economy of New Zealand?
It's affects because there is a gold that people get in working place and economy is getting less
What was the economy of the Australian gold rush?
it was not that much
What is the most important sector of the subsaharan African economy?
mining of gold, diamonds, minerals and nuclear related minerals.
What was the silver standard and the gold standard as they related to US history?
The silver standard and the gold standard refers to the ways the United States backed their money. For every dollar in the economy, there was a dollars worth of gold to back it up in a reserve. People could go and exchange their money in for gold if they wanted to. The same thing applied to silver.
Is gold the most expensive?
Gold can be the most expensive, but it all depends on the economy. Even the price of gold CAN drop because of the economy. If the value of money decreases the value of gold increases because no one can afford it. Since we are currently in a recession, the price of gold is at its all time high.
What effect does gold have on the economy today?
gold in ca$h could be donated to schools and charities
How is Australia's economy related to its geography?
no
Why is productivity related to the economy?
cause it just is
