Chapter 2163 Market
In the economic field, gold is the most reliable ballast stone.
When the Bretton Woods system was able to establish the U.S. dollar as the center and become a widely recognized currency system internationally, in addition to the strong national power of the United States at the time, the most important reason was that the official documents of the system stipulated that the U.S. dollar at that time must be equal to gold. Directly linking each country's currencies to the U.S. dollar and implementing a fixed exchange rate system.
According to the regulations at the time, members of the system could exchange gold with the United States at the official price of US$35 per ounce (approximately 28.35 grams).
On this basis, the International Monetary Fund (IMF) was established, and its main job is to provide short-term capital loans to member countries to ensure the stability of the international monetary system.
This also means that as long as they are member countries at that time, they can use the U.S. dollars they hold to exchange for gold, 35 U.S. dollars for 28.35 grams. The United States must give this batch of gold in exchange for its own U.S. dollars.
That’s why we call “US dollars” “US dollars”.
As the United States took control of the IMF and established its core leadership position in the global economic and financial field, the United States withdrew from the Bretton Woods system and began to use the U.S. dollar aggressively in exchange for cheap resources from other countries and regions.
Countries and regions have long been accustomed to using the U.S. dollar as an international currency. All cross-border transactions use the U.S. dollar. Naturally, there is no way to leave the U.S. dollar. They can only pinch their noses and continue to use the U.S. dollar.
There are enough markets that use the U.S. dollar. The greater the proportion of the U.S. dollar in economic activities, the stronger it will be.
The high-welfare life of the American people, where one worker can support a family and buy meat, eggs, and milk at extremely low prices, also relies on the strength of the U.S. dollar.
Now, the Xia Yuan is strong and the US dollar continues to weaken. During this critical period, gold price fluctuations are more able to affect the market and affect the market's nerves.
The unit price per gram of Daxia's local gold jewelry brands broke through the 1,000 Xia yuan mark after just one day of adjustment. During the period, the price fluctuated upwards, with no tendency to turn back and fall in price.
In Daxia's local Shuibei Market, every gold store is crowded with consumers and purchasers.
"I heard that the price of gold has skyrocketed recently. Are the prices of the jewelry in your store still the same as last month?"
"I want to buy hardware for my children. Do you have suitable hardware accessories in your store? The ones that cost about 1,000 per gram are no longer available? Now you want 1,000 yuan per gram? So expensive!? No, take it out first and let me take a look. , Hardware must be purchased.”
"Hey, why are there so many people? I am also paying attention to the changes in gold prices, and the Chinese New Year has just passed, so I want to buy some jewelry for my family. Let's see if the time is right."
"What's going on? When I went to your store last week, the bracelets were only about 600 per gram. Why are they starting at 1,000 now? I want to report you!"
Faced with the comments from customers and the threat of reporting, the clerks at these gold stores in Shuibei Market could only reluctantly explain: "The price of gold has increased a lot now. It's not just our local gold in Daxia that is increasing in price. The price of spot gold in the international market is rising, and we are also making adjustments based on market conditions. Today A customer came to the store several times this morning and still thought it was a bit expensive. But when he came in the afternoon, the price had increased by another hundred. So now we place orders at real-time prices, and all the labels on them have been invalidated. , customers can directly scan the QR code on the goods label to view the real-time price.”
The customers were a little stunned when they heard this explanation.
Although they wanted to say that these were all fake, since they entered Shuibei Market, the dense flow of people, the conversations of other people next to them, and the news on their mobile phones did remind them all the time: the price of gold is skyrocketing. ! Buy now and earn!
The foundation of the financial industry is users' confidence in products and users' expectations for the future.
Gold is the best financial product in nature. From ancient times to the present, princes, generals, nobles and wealthy people have been pursuing gold. But now, gold is strong and strong. In addition to making it temporarily unacceptable to customers, it is even faster to buy it one by one. Call, ask for money, raise credit...
They all want to take advantage of the current price to buy a batch of physical gold as soon as possible. While increasing the value, they also want to prevent the family assets from shrinking as much as possible.
Because gold has skyrocketed so much, Daxia's official TV news station also invited relevant experts to conduct "science popularization" on gold.
“The price of gold is not a completely controllable financial price. It is affected by many factors, such as the global economy, the economy of gold producing areas, and gold market factors.
First, the amount of gold mined, recycled, and changes in global demand directly affect gold prices. Secondly, gold mining costs, industrial demand, and jewelry market demand also affect its price.
In addition, the interest rate decisions and monetary policies of central banks around the world will affect the attractiveness of gold. For example, in a low interest rate environment, banks may reduce the opportunity cost of holding cash, thereby increasing the attractiveness of gold, while under inflation When expectations are high, gold will also be regarded as an excellent hedging tool against inflation and begin to appreciate...
In the nine years from 1971 to 1980, the price of gold soared from US$35 per ounce to US$850 per ounce. During this period, the main reason for the surge in gold was the collapse of the Bretton Woods system and the decoupling of the US dollar from gold. , increased uncertainty in the global monetary system, and rising inflation.
Then twenty years ago, at the beginning of the century, the global economy experienced a series of events such as the bursting of the Internet bubble, terrorist attacks, and the global financial crisis, which led to an increase in market risk aversion. In addition, the Federal Reserve began to promote the quantitative easing policy, which promoted the rise in gold prices. "
After some popular science and introduction, the expert faced the camera with a serious face and speculated: "This surge in gold prices is the most exaggerated appreciation fluctuation since gold became a financial product. I personally hope that investors can Invest calmly, because after a short-term surge, there is bound to be a price correction.
And although gold has important industrial value, the current gold production can fully meet the market demand for industry and semiconductors..."
After advising investors to invest cautiously, the expert finally said in a leisurely manner: "As the global economy begins to change dramatically, please invest rationally. I personally think that at this stage, it is best to stay healthy. Thank you for your investment.”