PRESENTATION ON

GOLD BULLION STANDARD

Sanzida Begum
Id: 17-002

Gold Bullion Standard

A gold standard under which the

coinage and circulation of gold is usually
prohibited but the shipment of gold in
international transactions is permitted
and a gold bullion reserve is maintained
as a support for the currency.

Features of the Gold Bullion standard

1. There is no circulation of gold coins.
2. Coinage of gold is not permitted.
3. Paper currency notes are not fully backed by gold

reserves. Yet, the government recognizes

convertibility of notes into gold.
4. The monetary authority undertakes the sale and
purchase of gold at fixed prices.
5. Import and export of gold are fully and freely
allowed.

Advantages

Economy in the use of gold

Imparts elasticity to monetary system
Proper use of gold in public interest
Stability in the external value of currency
Automaticity of its working

Disadvantages
Inherent lack of liquidity
Unusual increase in the supply of gold cause prices
to rise abruptly
Lesser public confidence
Not self-regulating

Thank you..