Gold Vs currency in international market an analysis report:

Gold is defines as A very soft, ductile material that is noted for its resistance to corrosive media. It is used primarily as a coating or plating material. Ground a conducting connection between an electrical current and the earth or other large conducting body to serve as an electrical ground, thus making a complete electrical circuit ground, earth - The portion of a circuit that is connected to a buried metallic object, such as a grounding rod or water pipe. Gold is an international market. The money value should be depends upon the gold storage of any country. For example the country which has enormous amount of gold the money value of particular country is very high and constant. Major factor is that affecting money is gold under the standard, currency issuers guarantee to redeem notes, upon demand, in that amount of gold. Governments that employ such a fixed unit of account, and which will redeem their notes to other governments in gold, share a fixed-currency relationship. International gold prices are set in London which abruptly changed in every minute. Under a floating exchange rate system, market forces generate changes in the value of the currency, known as currency depreciation or appreciation. From the definition of Britannica encyclopedia, In an international gold standard system, gold or a currency that is convertible into gold at a fixed price is used as a means of making international payments. Exchange rates between countries are fixed. If these rates rise or fall by more than the cost of shipping gold from one country to another, large inflows or outflows of gold occur until the rates are stabilized. Gold has been known and highly valued since prehistoric times. It may have been the first metal used by humans and was valued for ornamentation and rituals.

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