First, the primitive social stage

As a commodity, gold has its inherent physical characteristics, easy storage and metallic luster. It is separated from the goods exchanged at equal value and acts as a universal equivalent. The function of gold is a means of trading and a measure of value.

Second, the gold standard stage.

Entering the era of gold standard, it has experienced gold coin standard, gold bar standard and gold exchange standard successively.

(1) Gold coin standard system, in which gold is freely minted in various countries and exchanged at equal value. Internationally, it is used as a means of settlement and payment. At this stage, the price is stable and the exchange rate is stable. The function of gold as a means of trading, value measurement and foreign exchange.

(2) Gold bar standard system, China does not cast gold coins in circulation, but only issues bank notes representing a certain weight of gold. Bank notes cannot be freely converted into gold and gold coins, but can only be converted into gold bars from the issuing bank under certain conditions. Gold as a means of storage.

(3) Gold standard. Generally, the currency of China maintains a fixed price ratio with the currency of another country that implements the gold standard or gold bar standard, and deposits foreign exchange or gold as a stabilization fund in the latter, thus indirectly implementing the gold standard. Gold as a means of storage.

Third, the Bretton Woods period.

During the Cold War after the Second World War, in order to help the economic recovery of capitalist European allies, the United States implemented a double peg: gold and the dollar pegged, and the world currency pegged to the US dollar. At this time, the dollar acts as a capital reserve. Later, Gresham's law appeared, and bad money chased good money. The Bretton Woods system collapsed.

Four. jamica agreement

Under the background of financial crisis, Jamaica Accord confirmed the legalization of floating exchange rate system, and promoted the non-monetization of gold and the diversification of reserve currencies. In particular, the implementation of SDR has weakened the role of gold as a reserve.

How should we face gold?

In the transition from credit currency to electronic currency, the monetary function of gold reserve is weakening, and it has become a wealth management product with value preservation. Using gold to preserve value also has limitations. In the market where capital flows freely, the exchange rate becomes extremely unstable, and with the wide application of financial derivatives, the price of gold fluctuates greatly. Gold gradually withdrew from the currency field and entered the commodity field.