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RE: Forex Series - Part 1: History of the markets

in #money8 years ago

This appears to be pretty much a direct paraphrase of the investopedia article

The creation of the gold standard monetary system in 1875 is one of the most important events in the history of the forex market. Before the gold standard was created, countries would commonly use gold and silver as method of international payment. The main issue with using gold and silver for payment is that the value of these metals is greatly affected by global supply and demand. For example, the discovery of a new gold mine would drive gold prices down. (For background reading, see The Gold Standard Revisited.)

VS

The most important event in the history of the Forex markets was the creation of the Gold Standard monetary system which was introduced in 1875. Prior to this system nations would participate in the exchange of gold and silver as common methods of payment. However, there was an issue with this system, the value of these precious metals would be greatly affected by global supply and demand, for example if new gold reserves were found the price of gold would decrease significantly due to increased supply.

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