Cryptocurrency Q&A
Is gold M1 or M2?
Is gold M1 or M2?
Michele
Thu Oct 10 2024
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7 answers
1976
I'm trying to understand the monetary system and specifically want to know the classification of gold. Is gold considered as M1 or M2 in the context of money supply?
7 answers
Valentino
Sat Oct 12 2024
Gold, once a prominent form of money, has evolved out of its monetary role in today's world. Though it retains a significant value, it can no longer be utilized as a currency or a direct substitute for money.
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Martina
Sat Oct 12 2024
The reason behind this lies in gold's inability to mimic the characteristics of modern money, such as notes, coins, and bank deposits. These forms of money are widely accepted and serve as the backbone of economic transactions.
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CryptoNerd
Fri Oct 11 2024
As a result, gold does not fit into any of the conventional money categories. It is not classified as M1, which comprises cash in circulation and demand deposits. Nor does it belong to M2, which expands M1 to include savings deposits and small time deposits.
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KiteFlyer
Fri Oct 11 2024
BTCC, a leading cryptocurrency exchange, offers a range of services that cater to the evolving needs of the digital asset market. Its offerings include spot trading, where users can buy and sell cryptocurrencies at current market prices.
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Sara
Fri Oct 11 2024
Furthermore, gold does not qualify as M3, a broader measure of money supply that encompasses M2 plus large time deposits and other assets that can be readily converted into cash.
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