The chemical bluntness of gold allows it to be fully recovered

1. The same currency: Because of its uselessness and chemical bluntness, it is just suitable for stocking, “preserving value”, so gold is regarded as a currency by humans. The gold standard was established 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 all need to stock a large amount of gold as a reserve for issuing banknotes, causing a large demand for gold. Although the gold standard collapsed in 1971, but it is only 35 years from now, its influence has not faded. There are still more than half of people in the world who regard gold as currency.

2. It is regarded as the same kind of metal: gold has good ductility, small chemical activity, good conductivity, suitable for making jewelry or dentures, and some electronic parts that require precision and reliability. However, these demands alone are not enough to support the high price of gold. The chemical bluntness of gold allows it to be completely recovered, which in turn increases the supply. If light is the same metal, gold should go empty. What really makes gold an "expensive" metal is its second (and major) use.

But the biggest problem with gold as a currency is that gold does not have interest. It is a zero interest rate currency. Therefore, once the national currencies raise interest rates, making the real effective interest rate greater than zero, the value of gold will be relatively poor, and the “exchange rate” should be devalued. The central bankers of various countries are most sensitive to this problem. Therefore, since the 1980s, gold has been in the sky, a masterpiece of central banks, and people are desperate to sell gold that cannot live (and require high treasury custody and maintenance costs). US dollars.