2. Now it is not the gold standard, and the currencies of all countries are no longer linked to gold, but are endowed with value by law. In the past, when the gold standard was adopted, all the currencies issued by countries set their own gold content to issue money, and the gold reserves of various countries were announced regularly. Now the United States is the largest gold reserve country.
When the gold standard is adopted, there is much gold behind the amount of money issued. When a country's currency is used more and more strongly, the demand will increase, so it is necessary to issue more gold, but there is no more gold reserves, so we have to reduce the gold content. If your currency contains a small amount of gold, it will naturally depreciate. At that time, the dollar discovered this problem, abolished the gold standard and used the national tax as collateral to issue money.
4. In the current unpredictable international economic and political environment, increasing gold reserves has many advantages: First, as we all know, gold reserves are generally kept in the country, which is different from the foreign exchange reserves of the reserve currency issuing countries. Therefore, gold reserves usually belong to the category of national sovereignty and are generally not interfered by supranational forces, which is a big advantage of increasing gold reserves compared with increasing foreign exchange reserves. Second, gold itself is a value entity, different from foreign exchange reserves, which will reduce its real value with the depreciation of reserve currency. Gold is the most reliable means of maintaining value. Third, although the International Monetary Fund has implemented the non-monetization of gold, the essence of gold as an eternal wealth has not disappeared. No matter how the international situation changes, the increase of gold reserves means the growth of the country's eternal wealth, especially when the international political, economic and financial situation changes suddenly, the essence of gold as an eternal wealth will be vividly displayed. Fourthly, increasing gold reserves and increasing the proportion of gold reserves in China's total international reserve assets will help to improve the internal structure of China's international reserve assets and ensure their safety.