Offer your thoughts or opinion on the input financial query or topic using your financial background.

How is gold shared in worldwide economies?
I think you are asking a few questions here. Why is gold chosen as money? In a free market there are five characteristics of a good money: Gold and silver meet all five characteristics.  Diamonds are not easily divisible which is why they are not normally used as money.  Copper, Iron, and lead are not scarce enough - you would need a lot of these metals to make weekly or daily purchases.  Paper is also way too plentiful to be used as money. By the way, historically silver has been used for money more than gold. How does international trade work with gold as money (is this what you are asking with your hypothetical example of 10 countries each with y amount of gold?) Typically a government will issue a currency that is backed by gold.  This means you can redeem your currency for actual gold.  Then when an American spends 5 US dollars (USD) to purchase a Chinese good the Chinese man now owns 5 USDs.  The Chinese man can either redeem the 5 USD for gold or spend the 5 USD in the US.  If a government issues more currency then they have gold for then the gold will start to flow from that country to other countries as the citizens of the other countries redeem the over-issued currency for gold.  This outflow of gold restricts governments from over-issuing paper currency. Who creates the procedures and who supervises them in modern worldwide economy? The Federal Reserve, IMF, and Bank of International Settlements all are involved in the current system where the US dollar (see Bretton Woods agreement) is the reserve currency used by central banks throughout the world.  Some think this system is coming to an end.  I tend to agree.