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Why do States need gold reserves
Material posted: Publication date: 29-07-2013

The paper money is eaten up by inflation. Securities in the event of a crisis, sharply falling in price. And deposits may be seized or confiscated. Banker Alexander Lezhava says the website of Conceptual.of the Russian Federation about the money, which is always stable.

Why precious metals become money?

- There's a lot of factors and, first of all, it is the convenience. Why people have chosen gold or why use silver? Because it was convenient. These metals were typical of the properties that are inherent in real money, i.e. they do not spoil over time, under normal conditions with them, nothing happened. I do not take any extreme, like a volcanic eruption, when the lava melts everything, but under normal conditions those that exist on the planet, with them nothing happened. So they could be transmitted to the generations. That is, save for a long time, paying this piece of metal, you immediately receive payment for their goods: this account, and the payment at the same time. That is, it is not any commitments, here is a very interesting point arises regarding money - not money. Now very advertise e-currency BitCoin, you've probably heard. The fact that there was released on $ 21 million in fact, and last time, when the crisis especially in Cyprus happened, they jumped the price, and for this BitCoin gave about 20 dollars. Now jumped to 140 or something and quite a lot of publications on this topic that is new money 21-22 century. Unfortunately, those who says that he doesn't quite understand what money is different from currency. And one of the characteristics of money is that you can pay, you do not need additional properties, equipments and so on. There is a piece of metal, which I suppose gave is, in fact, goes the calculation, we completed the transaction. As for this e-currency there is, it is possible to pay, but it can be calculated with respect to a variety of conditions. You must have a computer, you have to have a program, you should be all set, you need to be a connection, should be Internet and ultimately you have to have electricity. In order to get the grams of gold it is necessary to expend the labor. And the gold standard is interesting because in fact it was the measure of human labour, about which danced the rest. That is, it was the measure, the standard gram, metre, second, but it was a measure not of this physical world, and the measure of economy. And relatively it was all built, because right now, I already talked about this floating method: there is no action about something.

Why States gold reserve?

- Officially the largest reserves among Americans. There are approximately 8 thousand 200 tons, the Chinese declared about 1 thousand tons. But it was, first, a few years ago, and, secondly, they are very actively buying gold on the open world market and from their fact that it is directly in China. So, what is their real stock, I think, only they know. The biggest mystery to date because you can know what one nuclear arsenals, where are they located, where are the submarines, missiles and so on. But how many, what country are actually gold, I think, to say nobody can. At least from the major players, China and the USA, in my opinion, Americans are seriously overpriced, seriously underestimate the Chinese. Gold at the moment as it has been for thousands of years, it is an absolute money what is called money parks lance. That is, they will be taken in all conditions and for the same money you can buy food, weapons, and resources, and people, if we are talking about the army and so on. They always took and always will take. And if there will be some crisis events, the wrappers will not take, will ask something more real, and real is gold and silver, everything. The rest of the metals, platinum, palladium, they are too precious, but they don't have such traditions as those of basic metals and they are still used for construction purposes.

What other Central Banks are buying precious metals?

- They don't buy platinum, buy palladium, they do not, but they buy gold. That is, the tradition, that the traditional attitude towards money, which was, it is still true today. And to a lesser extent this applies to silver, but then again, I think that in a very short period of time it can change dramatically, because the same sales of silver coins of the U.S., which beat all records, it says only one thing. The fact that the population does not believe that all will be well and strongly shifts their money, their savings in what is a real value. Another thing that gold is much more expensive today than silver and buy the same gold coin untsovy can afford not everyone. At the same time, silver coins much more affordable, they can buy almost anyone, even a pensioner.

Where in our time, the precious metals used as money?

- Now there is actually a precedent when a country is calculated in gold for the delivered goods - Iran. The Americans imposed a variety of sanctions, was prohibited from making payments in us dollars, Euro, Europe began to enter and they were forced into gold and them to pay. Somewhere in the past year talked about the fact that there is a bad situation with inflation in Iran, things are bad, they actually threw to the domestic gold coin market. That is, it was possible to buy them, the market stabilized, the currency stabilized, in fact. Due to the fact that they began to pay in gold with other contractors and started with them to payments in gold, clearly plus got even Turkey. She received a positive trade balance, stabilized its currency, although, in General, she did nothing, she just started to more actively trade gold. That is, gold has many positive aspects on the economic life of the country. Silver, I think that after all the silver in the inter-state calculations are hardly used because, at least at the current moment it is significantly cheaper and, most likely, silver will be used or may be used in the internal calculations, that is when you will be going to the market and in shops.

Is there overproduction of goods in the modern world? How does it affect the gold price?

- See, now how many people? The population is around 6 billion people on the planet. In order to ensure a decent life for all, it is necessary about 6 billion tons of food. We believe that humans need a ton of grain food. Really is somewhere around 1.5 billion tons is for food production. So when they say overproduction, there is really no overproduction, no effective demand. Therefore, in order to keep prices at the same level, ready to throw, not to sell or give away and so on. On the other hand, this process which we are seeing now, he's also quite interesting because although in constant circulation, this currency, but its role is not money lost actually the same gold and so on. One of the significant problems, which was charged with the gold that they say it is due to the fact that manufactures various products, they eventually become cheaper and therefore more profitable not to sell gold today and wait a year or two or three or five and buy the same product cheaper or even better but cheaper. If you look at stock prices, but not as much as they are considered to be in American currency banknotes, and in grams of gold, the trend has continued, and quite clearly. Prices for agricultural products, industrial raw materials, it continues to fall in price relative to gold. That is, gold it shows that as money, and so it remains. And the fact that some games with funny money, it really does not affect this process, relative to gold, grain, food, vegetables, milk, everything gets cheaper. So basically if you, say, bought in 2001 a gold coin and it is possible to buy a certain amount of bread, butter, milk, meat, today the same coin you can buy it twice. I don't remember how much has changed, but it is very important.


Source: http://gold.ru/articles/analytics/zachem-gosudarstvam-nuzhen-zolotoj-zapas.html

 


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