IJEFI_8 Dudin_275471 1 1 2 International Journal of Economics and Financial 2 3 3 4 Issues 4 5 5 6 ISSN: 2146-4138 6 7 7 8 available at http: www.econjournals.com 8 9 9 10 International Journal of Economics and Financial Issues, 2016, 6(S3) 1-8. 10 11 11 Special Issue for “State and Municipal Regulation, Investment, Commerce: National and International Aspects of the Business” 12 12 13 13 14 14 15 15 16 Gold and its Determining Role in Modernization and 16 17 Technological Processes Related to Changing Geo-economic 17 18 18 19 Structure of the World 19 20 20 21 21 22 Mihail Nikolaevich Dudin1*, Vladimir Dmitriyevich Sekerin2, Anna Evgenevna Gorohova3, 22 23 Vladimir Ivanovich Gayduk4, Tamara Petrovna Danko5 23 24 24 25 25 1Russian Academy of Entrepreneurship, 14 Radio Street, Moscow 105005, Russian Federation, 2Moscow State University of 26 26 Mechanical Engineering, 38 Bolsheaya Semenovskaya Street, Moscow 107023, Russian Federation, 3Moscow State University 27 27 of Mechanical Engineering, 38 Bolshaya Semenovskaya Street, Moscow 107023, Russian Federation, 4Kuban State Agrarian 28 28 University, 13 Kalinina Street, Krasnodar 350044, Russian Federation, 5Plekhanov Russian University of Economics, 36 Stremyanny 29 29 Per., Moscow, 117997, Russian Federation. *Email: [email protected] 30 30 31 31 32 ABSTRACT 32 33 This article considers the role of gold in the world economy and its place in contemporary structures of gold-value reserves of the leading countries 33 34 of the world. It also takes into account the historical experience of using gold in various periods (epochs). The theme of the article is rather urgent 34 35 at the moment of transformation and occurrence of a new transitional stage in the world economy, because traditionally at any transitional period 35 36 the investment activity was focused on the least risky investments. Investments in precious metals are thought to be such investments. They do not 36 37 lose their value and price during the long period of time. The following essential conclusions were received within this article: (1) Gold is the most 37 38 demanded precious metal in terms of decreasing risks of accumulation and investments. The main part of the gold obtained industrially is presented 38 39 by centralized reserves (standard ingots of chemically pure gold), (2) gold mining is limited in the world because natural reserves of this metal are 39 40 irretrievable; at the same time modern physical and chemical technologies allow to artificially grow crystals of gold; however, such technologies 40 41 are characterized by high cost and low level of returns from their use, (3) gold as a resource will continue playing a psychologically stabilizing role; 41 herewith, the information resource (business information) required for ensuring the world stable social and economic development will get basic value. 42 42 43 Keywords: Gold, Gold and Foreign Currency Reserves, Economic Crisis, Factorial Analysis, Cluster Analysis 43 44 JEL Classifications: Q32, Q34, H54, P45 44 45 45 46 46 47 47 the most demanded tool for international financial operations. 48 1. INTRODUCTION 48 Numerous factors affected and still go on affecting such state 49 49 of things. It is necessary to particularly mention geo-economic 50 At all times of the active economic history of the humankind the 50 “behavior” of the leading countries of the world system among 51 notions of wealth and people’s perception of gold as a monetary 51 them (Bernheim and Rangel, 2009; Daheim and Uerz, 2008). At 52 metal were universalized. As a consequence, its place in the 52 the contemporary historical stage we observe the change of the Pax 53 economic activity of the contemporary society was steadfastly 53 Americana (the epoch of America) to the Pax Sinica (the epoch 54 stipulated. Since the chronicle appearance, gold has played an 54 of China). Due to this, in the immediate future the US dollar will 55 important role in the system of currencies and credit relations. 55 obviously lose its status of the principle international payment unit 56 However, its meaning was not always univalent (Calvet et al., 56 more and more. Nevertheless, we will note a number of factors 57 2009; Hansen, 2014). When the leader was changed in the world 57 58 economic system, the monetary unit of the financial and currency due to which the US dollar became the principle world currency 58 center lost its “attractiveness,” and at this stage gold became (Kolganova, 2013; Dudin et al., 2013; Krainer, 2014): International Journal of Economics and Financial Issues | Vol 6 • Special Issue (S3) • 2016 1 Dudin, et al.: Gold and its Determining Role in Modernization and Technological Processes Related to Changing Geo-economic Structure of the World 1 • Certainty as for debentures of the US government that are the International Monetary Fund and the World Bank that are the 1 2 nominated in the national currency, and theoretically the USA implementation of the geo-economic structure of the world. 2 3 can pay off their external debts through a simple increase in 3 4 the monetary emission. At the moment the geo-economic structure of the world is in the 4 5 • “Special” relations of the US government with Middle state of transformation. The starting point of the current period 5 6 East monarchies; consequently, the Middle East oil is sold of the transformation of the world geo-economic structure is the 6 7 exclusively for the US dollars. mortgage crisis of the USA that with time turned into the 2008 7 8 • US circumspect policy on attracting “intellect” from abroad; economic crisis, debt crisis of the European Union that started 8 9 as a result, at the present time the USA remains the most in 2010, and economic crisis in Russia (2014-2015). In a greater 9 10 developed country in the area of development projects. or lesser degree the latter is related to the economic crisis in 10 11 • Battle-worthy army equipped with modern weapons and the world. As a consequence, the architecture of the world geo- 11 12 NATO bases located around the world. economy undergoes considerable structural changes. Above all, it 12 13 is expressed in gradual changing of traditional leaders of the world 13 14 Referring to the history of the world economy development, it is economy. In recent time China has been asserting itself rather 14 15 necessary to note that during the period of financial instability, strongly. However, this state still refrains from a real challenge 15 16 the role of gold in international currency and credit relations for the role of the only leader of one of the economic centers of 16 17 more often and especially intensively became the object of the world. So, the change of positions in the rating of leading 17 18 closer attention on the part of many researchers (Klimov, 2007; economies is an example of it. Up to 2011 the economy of Japan 18 19 Fedorova and Lanets, 2013). The evidence of it is a rather long was considered to be the second economy after the USA. However, 19 20 list of scientific references presented at the end of the article. It starting from 2011, the economy of China has been considered 20 21 considers concepts of the role of gold in macro economy. Based to be the second economy of the world (Gold Survey, 2012). In 21 22 on the above, according to the authors, the research of the role of addition, we can also observe the accumulation of considerable 22 23 gold in contemporary international currency and credit relations financial resources for non-traditional geo-economic players of 23 24 is a rather urgent theme. the world - China, Brazil, India, and Russia. However, the lack of 24 25 gold and foreign currency reserves is observed in the traditional 25 26 2. METHODOLOGY “triad” of the geo-economic structure of the world - Europe, the 26 27 North America, and the Asia-Pacific Region. Consequently, in 27 28 certain cases considerable indicators of the external debt can 28 Works of national and foreign researchers devoted to various 29 several times surpass specific value of the gross domestic product 29 aspects of the theory of the world economy, market of gold and 30 calculated according to the purchasing power balance. At the same 30 banking were the theoretical basis of this article. The following 31 time the situation related to gold and foreign currency reserves 31 methods were applied as the methodological basis: Analysis, 32 and economy functioning in debt on the edge of default in Europe 32 synthesis, analogy, comparison, induction and deduction, 33 and Asia-Pacific Region provokes a discussion, because there is 33 mathematical and statistical (cluster, factor and method of 34 transformation of the geo-economic leader: The PRC replaces 34 statistical surface). While writing this article, the authors took 35 Japan. At the same time Asia-Pacific Region is expended. That’s 35 into account and used the results and conclusions from numerous 36 why in the geo-economic aspect these tendencies can be regarded 36 works of the leading Russian and foreign specialists in the area of 37 as differently directed. As a result, the top-ranked rich and stable 37 gold value relations as well as materials of online resources. On 38 countries have to call on “new” geo-economic centers with 38 the basis of the existing works, the authors’ concept in relation to 39 the request to deposit gold and foreign currency reserves for 39 the view of perspectives of the development of the world currency 40 maintaining geo-economic stability of the first ones and preventing 40 and gold value relations was stated.