Why Is Gold Called A Currency

Why Is Gold Called A Currency in the 20thcentury economics gold was the the main currency to the 21st century gold is not preferable a currency due to the invasion of paper money coins such as dollar, euros ,yarns and so much more now days each country has got its own currency in form of paper money.  Under a free market system gold is a currency because of the specific reasons. Why Is Gold Called A Currency.

Reasons Why Is Gold Called A Currency

Gold has a price which will fluctuate relative to other forms of exchange such as Japanese yarn, USA dollar , euros and so much more. Gold is serves as a major assets of the central reserves in some countries and the banks. Which is the other reason which makes it as a currency. Gold is the only currency that cannot be printed. In conclusion gold is a currency just as other currencies all over the world. Due to the fact that some do won gold just as any other currency.

What determines the price of gold

The price of gold is determined by the demand of the metal. Although gold is a metal one of the top precious metals all around the world the valuable of gold and demand has always put gold on the first spot.