Gold Scarce

can someone help me on a question about the gold standard?

Examine the Gold-Exchange standard. Why was it established? Discuss the role of the Great Depression and the post-1914 world monetary order. Why did the Gold-Exchange Standard fail?

the web page (below) answers the question: What are the main Features, Merits and Demerits of Gold Exchange Standard?

Gold exchange standard refers to a system in which there is neither a gold currency in circulation not gold reserves held for external purposes.

Under this system, the domestic currency of a country (which is composed of token coins and paper notes) is not converted into gold for meeting internal needs, but is converted into the currency of some foreign payments.

The external value of the domestic currency unit is determined in terms of the foreign currency. Thus, under gold exchange standard, the domestic currency has no direct link with gold; it is linked at a fired exchange rate with the currency of another country which is convertible into gold.

In addition to gold reserves, the monetary authority of the country maintains sufficient amount of foreign exchange reserves for making international payments.

Gold exchange standard is a cheaper form of gold standard particularly suitable for the underdeveloped or gold-scarce countries.

It was first adopted by Holland in 1877 and then by Austria, Hungry, Russia and India during the last decade of the 19th century. India abandoned this standard in 1926 on the recommenda­tions of the Hilton Young Commission.

Features

(i) The domestic currency is made of token coins and Paper Money. Gold coins are not in circulation.

(ii) The domestic currency is not convertible into gold but is convertible at the fixed rate into the currency of the other country based on the gold standard.

(iii) There is no direct link between the volume of domestic currency and the gold reserves.

(iv) Foreign exchange and foreign bills along with gold constitutes the reserve base of a country.

(v) The gold market is regulated and controlled by the government. There is no free import and export of gold.

(vi) Gold is used neither as a medium of exchange nor as a measure of value. But prices of all goods and services are indirectly determined by the price of gold.

(vii) Foreign payments are made either in gold or in currency based on gold.

Merits

The gold exchange standard enjoys the following advantages:

1. Economical:

Gold exchange standard is cheaper and economical. It economies the use of gold in two ways: (a) it avoids the wastage of gold because of non-circulation of gold coins: (b) the government need not keep gold reserves for converting domestic currency into gold.

2. Elastic money Supply:

Since the domestic currency is not backed by gold reserves, the monetary authority can easily, expand money supply to meet the increasing needs of trade and industry.

3. Exchange Stability:

Under gold exchange standard, it is the responsibility of the government to maintain the stability of exchange rate. Exchange stability is essential for the promotion of foreign trade.

4. Gains to Government:

The government of the country also gains from this standard: (a) It earns interest on the reserves kept in the foreign country; (b) It also keeps some margin between the buying and selling of foreign exchange.

5. Gains of Gold Standard:

All the advantages of the gold standard become available under this standard without putting gold coins in circulation.

6. Suitable for poor Countries:

This standard is particularly suited to the less developed countries with gold scarcity.

Demerit

The gold exchange standard has the following drawbacks:

1. Complex:

This standard is complex in its working and is not easily understandable by the common people.

2. Less Public Confidence:

Under this standard, domestic currency is not directly linked with gold and the currency is not convertible into gold. Therefore, it does not inspire much public confidence.

3. Not Automatic:

This standard does not work automatically and needs active government intervention. It may be more appropriately called a managed standard.

4. Inflation-Oriented:

Under this system, money supply can be increased easily but it is very difficult to reduce money supply. Hence it is prone to inflation.

5. Expensive:

This system is not economical. To make it work, the government has to keep many reserves which involve lot of expenditure. It is due to its expensive nature that India abandoned this system on the recommendations of Hilton Young Commission.

6. Monetary Dependence:

Under this standard, the monetary independence of a country cannot adopt an independent monetary policy but has to be governed by the policy of the foreign countries.

7. External Insecurity:

Since, under this standard, the domestic currency of a country is linked with the foreign currency, the insecurity and instability of the foreign currency makes the monetary system of the related country insecure and unstable.

Find Popular Gold Scarce At eBay Below:

1813 George III Gold Guinea AU55 PCGS Military Bust Scarce Last Issue
1813 George III Gold Guinea AU55 PCGS Military Bust Scarce Last Issue
$3,550.00
1914 GOLD 20 MARK GERMANY UNIFORM SCARCE MINT STATE
1914 GOLD 20 MARK GERMANY UNIFORM SCARCE MINT STATE
$424.00
1831 B GOLD 20 FRANCS FRANCE SCARCE MINTMARK AUNC++
1831 B GOLD 20 FRANCS FRANCE SCARCE MINTMARK AUNC++
$374.00
2000 Isle of Man Tri Gold Crown Scarce Free Shipping
2000 Isle of Man Tri Gold Crown Scarce Free Shipping
$1,499.00
2002 Switzerland 50 Francs Gold Coin 900 Scarce Free Shipping
2002 Switzerland 50 Francs Gold Coin 900 Scarce Free Shipping
$499.00
2001 Australia 150 Gold Floral Emblems Scarce Free Shipping
2001 Australia 150 Gold Floral Emblems Scarce Free Shipping
$750.00
1992 CHINA 10 YUAN 1 10 TROY OZ 999 GOLD PANDA COIN NGC MS 69 LARGE DATE SCARCE
1992 CHINA 10 YUAN 1 10 TROY OZ 999 GOLD PANDA COIN NGC MS 69 LARGE DATE SCARCE
$309.00
1906 GOLD MEXICO 10 PESO SCARCE MINT STATE
1906 GOLD MEXICO 10 PESO SCARCE MINT STATE
$395.00
SCARCE 1988 AUSTRALIA KANGAROO DOLLAR GOLD FILLED PENDANT 24 FIGARO CHAIN
SCARCE 1988 AUSTRALIA KANGAROO DOLLAR GOLD FILLED PENDANT 24 FIGARO CHAIN
$48.51
SH1322 MS65 Iran Gold Pahlavi Key Date 1943 Persia UNC KM 1148 Scarce date
SH1322 MS65 Iran Gold Pahlavi Key Date 1943 Persia UNC KM 1148 Scarce date
$549.00
SCARCE 1897 RUSSIA 75  RUBLES GOLD COIN IMPERIAL RUSSIAN NICHOLAS II EMPIRE
SCARCE 1897 RUSSIA 75 RUBLES GOLD COIN IMPERIAL RUSSIAN NICHOLAS II EMPIRE
$685.99
SCARCE 1903 P UNC MS RUSSIA 5 ROUBLE GOLD COIN IMPERIAL RUSSIAN NICHOLAS RUBLE
SCARCE 1903 P UNC MS RUSSIA 5 ROUBLE GOLD COIN IMPERIAL RUSSIAN NICHOLAS RUBLE
$339.99
Scarce 1983 5 Yuan China Gold Panda 1 20 oz 999 Pure Gold Grading CH BU
Scarce 1983 5 Yuan China Gold Panda 1 20 oz 999 Pure Gold Grading CH BU
$500.00
SCARCE 1898  RUSSIA 5 ROUBLE GOLD COIN IMPERIAL RUSSIAN NICHOLAS II 5 RUBLE
SCARCE 1898 RUSSIA 5 ROUBLE GOLD COIN IMPERIAL RUSSIAN NICHOLAS II 5 RUBLE
$264.99
China 1999 1 10 Oz Ounce 10 Yuan Gold Panda Scarce
China 1999 1 10 Oz Ounce 10 Yuan Gold Panda Scarce
$369.00
1944 MEXICO 50 PESOS 12 Oz GOLD COIN PCGS MS65 MS 65 SCARCE DATE
1944 MEXICO 50 PESOS 12 Oz GOLD COIN PCGS MS65 MS 65 SCARCE DATE
$2,765.00
1788 GOLD 1 ESCUDO SPAIN MADRID SCARCE VERY NICE
1788 GOLD 1 ESCUDO SPAIN MADRID SCARCE VERY NICE
$268.00
Mauritius 1000 Rupees 2000 Gold PCGS PR69DCAM Mtg300 only Scarce coin
Mauritius 1000 Rupees 2000 Gold PCGS PR69DCAM Mtg300 only Scarce coin
$1,195.00
1223 GOLD 2 HAYRIYE ALTINTURKEY SCARCE 46 GRAMS FINE GOLD
1223 GOLD 2 HAYRIYE ALTINTURKEY SCARCE 46 GRAMS FINE GOLD
$248.00
1894 GOLD 10 KORONA HUNGARY SCARCE DATE
1894 GOLD 10 KORONA HUNGARY SCARCE DATE
$178.00
Portugal Gold Coin 5000 Reis 1870 D Ludovicus I D Luis I Scarce date
Portugal Gold Coin 5000 Reis 1870 D Ludovicus I D Luis I Scarce date
$520.00
Mexico 4 Reales 1856 PiMC F VF silver KM3758 Light Gold Hues Scarce Type
Mexico 4 Reales 1856 PiMC F VF silver KM3758 Light Gold Hues Scarce Type
$279.95
MEXICO GOLD 1856 4 MO GF 1 2 Escudo OVERDATE NGC AU DETAILS SCARCE KM 3785
MEXICO GOLD 1856 4 MO GF 1 2 Escudo OVERDATE NGC AU DETAILS SCARCE KM 3785
$245.00
1994 MARSHALL ISLANDS 5 DOLLARS HEROES OF D DAY FDC SCARCE GOLD PLATED
1994 MARSHALL ISLANDS 5 DOLLARS HEROES OF D DAY FDC SCARCE GOLD PLATED
$9.99
SCARCE 1897  RUSSIA 5 ROUBLE GOLD COIN IMPERIAL RUSSIAN NICHOLAS II 5 RUBLE
SCARCE 1897 RUSSIA 5 ROUBLE GOLD COIN IMPERIAL RUSSIAN NICHOLAS II 5 RUBLE
$264.99
1975 GOLD 500 DOLLARS SINGAPORE SCARCE  1 OUNCE GOLD
1975 GOLD 500 DOLLARS SINGAPORE SCARCE 1 OUNCE GOLD
$2,080.00
1830 GENOA GOLD 80 LIRE ITALY SARDINIA SCARCE NGC XF 45
1830 GENOA GOLD 80 LIRE ITALY SARDINIA SCARCE NGC XF 45
$1,670.00
1810 GOLD 20 FRANCS FRANCE NAPOLEON EMPEROR SCARCE
1810 GOLD 20 FRANCS FRANCE NAPOLEON EMPEROR SCARCE
$364.00
1828 GOLD 20 LIRE ITALY SARDINIA VERY SCARCE NGC XF 45
1828 GOLD 20 LIRE ITALY SARDINIA VERY SCARCE NGC XF 45
$540.00
1895 SGOLD 10 DOLLAR USA SCARCE DATE ONLY 49000 MINTED
1895 SGOLD 10 DOLLAR USA SCARCE DATE ONLY 49000 MINTED
$990.00
1904 GOLD 5 ROUBLE RUSSIA SCARCE UNCIRCULATED
1904 GOLD 5 ROUBLE RUSSIA SCARCE UNCIRCULATED
$295.00
OTTOMAN EGYPT GOLD ZERI MAHBUB OF MAHMUD I 1143 1168 AH 1730 1754 AD SCARCE
OTTOMAN EGYPT GOLD ZERI MAHBUB OF MAHMUD I 1143 1168 AH 1730 1754 AD SCARCE
$395.00
Details about 1901 CYPRUS 18 Piastres SUPER SCARCE STERLING SILVER COIN
Details about 1901 CYPRUS 18 Piastres SUPER SCARCE STERLING SILVER COIN
$120.00
1907 Cyprus 18 Piastres KM 10 Sterling Silver Scarce Coin VF
1907 Cyprus 18 Piastres KM 10 Sterling Silver Scarce Coin VF
$349.00
1897 GOLD 5 ROUBLE RUSSIA SCARCE DATE
1897 GOLD 5 ROUBLE RUSSIA SCARCE DATE
$113.50
1864 GOLD 100 REALES SPAIN SCARCE MINT STATE LUSTROUS
1864 GOLD 100 REALES SPAIN SCARCE MINT STATE LUSTROUS
$271.00
1893 GOLD POND SOUTH AFRICA SCARCE NOT COMMON DATE
1893 GOLD POND SOUTH AFRICA SCARCE NOT COMMON DATE
$388.00
1868 GOLD 2 BU JAPAN MEIJI SCARCE OLD COIN 296 GRAMS
1868 GOLD 2 BU JAPAN MEIJI SCARCE OLD COIN 296 GRAMS
$0.90
2006 Belarus Swans 50 Rubles Proof Gold Coin Scarce
2006 Belarus Swans 50 Rubles Proof Gold Coin Scarce
$500.00
Greece 1884 Gold 20 Drachmai PCGS MS 63 Scarce
Greece 1884 Gold 20 Drachmai PCGS MS 63 Scarce
$450.00



List Of Recently Purchased Gold Scarce:


1813 george iii gold guinea au55 pcgs military bust scarce last issue, 1914 gold 20 mark germany uniform scarce mint state, 1831b gold 20 francs france scarce mintmark aunc, 2000 isle of man tri gold crown scarce free shipping, 2002 switzerland 50 francs gold coin 900 scarce free shipping, 2001 australia $150 gold floral emblems scarce free shipping, 1992 china 10 yuan 110 troy oz 999 gold panda coin ngc ms 69 large date scarce, 1906 gold mexico 10 peso scarce mint state, scarce 1988 australia kangaroo dollar gold filled pendant 24 figaro chain, sh1322 ms65 iran gold pahlavi key date 1943 persia unc km 1148 scarce date, scarce 1897 russia 75 rubles gold coin imperial russian nicholas ii empire, scarce 1903 p unc ms russia 5 rouble gold coin imperial russian nicholas ruble, scarce 1983 5 yuan china gold panda 120 oz 999 pure gold grading ch bu, scarce 1898 russia 5 rouble gold coin imperial russian nicholas ii 5 ruble, china 1999 110 oz ounce 10 yuan gold panda scarce, 1944 mexico 50 pesos 12 oz gold coin pcgs ms65 ms65 scarce date, 1788 gold 1 escudo spainmadrid scarce very nice, mauritius 1000 rupees 2000 gold pcgs pr69dcam mtg300 only scarce coin , 1223 gold 2 hayriye altinturkey scarce 46 grams fine gold, 1894 gold 10 korona hungary scarce date, portugal gold coin 5000 reis 1870 d ludovicus i d luis i scarce date, mexico 4 reales 1856 pimc fvf silver km3758 light gold hues scarce type, mexico gold 18564 mo gf 12 escudo overdate ngc au details scarce km 3785, 1994 marshall islands 5 dollars heroes of dday fdc scarce goldplated, scarce 1897 russia 5 rouble gold coin imperial russian nicholas ii 5 ruble, 1975 gold 500 dollars singapore scarce 1 ounce gold, 1830 genoa gold 80 lire italy sardinia scarce ngc xf45, 1810 gold 20 francs france napoleon emperor scarce, 1828 gold 20 lire italy sardinia very scarce ngc xf45, 1895sgold 10 dollar usa scarce date only 49000 minted, 1904 gold 5 rouble russia scarce uncirculated, ottoman egypt gold zeri mahbub of mahmud i 11431168 ah 17301754 ad scarce, details about 1901 cyprus 18 piastres super scarce sterling silver coin , 1907 cyprus 18 piastres km 10 sterling silver scarce coin vf, 1897 gold 5 rouble russia scarce date, 1864 gold 100 reales spain scarce mint state lustrous, 1893 gold pond south africa scarce not common date, 1868 gold 2 bu japanmeiji scarce old coin 296 grams, 2006 belarus swans 50 rubles proof gold coin scarce, greece 1884 gold 20 drachmai pcgs ms 63 scarce, australia 1899 m veiled victoria gold coin sovereign ngc certified au 55 scarce, 1255151853 gold 100 qirshegypt very scarce ngc au53, 1744 gold issue germany scarce 42 grams, 1327 gold 250 kurushturkey very scarce issue only 6878 minted , 1869bb gold 100 francsfrance very scarce superb condition, 1952 1977 proof silver jubilee 999 silver medal w gold plating scarce, russia 1896 staron rim 50 kscarce ngc xf45 low mintage bluegold tonning , colombia ferdinand vii gold 1818 nrjf escudo ngc fine details scarce km 641, mexico gold 1891 mo m 1 peso ngc ms62 mexico mint746 pieces scarce km 4105, belgium 1878 gold coin 20 francs anacs certified genuine grade au 58 scarce, egypt ottoman gold 100 piastres sultan abdul aziz 12777 ah vac scarce, scarce 2004 poland polish 2 zloty nordic gold coin wildlife porpoises pcgm 2, scarce 2004 poland polish 2 zloty nordic gold coin fine arts academy pcgm 2, scarce 2006 poland polish 2 zloty nordic gold coin wildlife marmot pcgm, scarce poland polish 1998 ann of independence 2zl nordic gold coin nice, scarce 2005 poland polish 2 zloty nordic gold coin wildlife owl pcgm nice 2, scarce 2002 poland polish 2 zloty nordic gold coin wildlife turtles pcgm 3, scarce 2004 poland polish 2 zloty nordic gold coin fine arts academy pcgm, scarce poland polish 2010 nordic gold 2 zloty coin gorlice pcgm high grade 2, scarce 2006 poland polish 2 zloty nordic gold coin wildlife marmot pcgm 2, scarce 2002 poland polish 2 zloty nordic gold coin wildlife turtles pcgm, scarce 2002 poland polish 2 zloty nordic gold coin wildlife turtles pcgm 2, scarce gold cob 1 escudo nuevo reino colombia, 1777p sf colombia gold escudo scarce popayan mint km 482 ngc vf35, 1899s morgan silver dollar better grade original scarce date coin circulated, turkey ottoman gold 100 kurush sultan abdul aziz 12773 apja scarce , egypt ottoman gold 5 piastres sultan abdul aziz 1277 12 ah va scarce, scarce 1917 canadian gold sovereign ngc certified ms 63, scarce 2006 australia lunar dog 10th ounce gold colorized coin gem bu, china 1984 1 ounce 100 yuan gold panda ngc ms68 scarce, scarce 1923 87 100 kur turkish gold coin look pcgs secure ms 66 7792, france 1866 bb uncirculated gold 10 francs napolian iii scarce ngc ms61 gem , switzerland 1935 b no l gold coin 20 francs ngc cert genuine ms 63 scarce, s africa gv 1927 sa gold coin sovereign pcgs certified genuine ms 63 scarce, gold coast tackoe 1796 silver vf very scarce, 1850 gold 20 francs france scarce type second republic, scarce 100th anniversary titanic proof $100 gold coin, 1970 bhutan 1s sertum gold coin anacs ms66 gem scarce, 1915 austrian gold coin 20 coronas frans joseph scarce very nice, 14 pahlavi scarce c 2537 or 1978 very rare 900 pure gold persian coin, england william iii 1700 av five guineas pcgs xf40 s3454 very scarce type, 1900 gold 5 rouble russia scarce date beautiful, scarce 1904 10 korona gold coin from hungary high grade coin , 1907 gold 10 mark germanybavaria scarce uncirculated, sh1338 ms63 iran 12 gold pahlavi km 1161 1960 persia unc scarce, 1910 france 20 francs scarce high grade gold coin scarce french gold rooster, 2004 australia colorized monkey tenth 110 oz gold scarce coin gem bu, sh1336 ms65 iran 12 gold pahlavi 1957 unc scarce date persia km 1161, 1912 12 half british sovereign bought from apmex scarce, 1897 netherlands queen wilhelmina scarce early long hair 10 gulden gold coin, morocco 5 franks ah 1347 a1927 ad scarce better date nice light gold tonning , 2017 taniwha 1 oz gold proof coin maori art coin scarce, portugal gold coin 5000 reis 1860 king petrus v very scarce, yugoslavia 1 dukat ducat 1932 unc gold rare scarce , bjstamps 1842 p sardinia 20l gold italy 900 gold 186 toz pcgs au 53 scarce, 1911 russia 10 rouble gold coin ngc unc scarce date, 1818 gold 20 lire italy sardinia very scarce ngc xf45



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