National central banks can use their often substantial foreign exchange reserves to stabilize the market.

Paper currency was held in suspicion and hostility in Europe and America. It was also addictive, since the speculative profits of trade and capital creation were quite large. Major nations established mints to print money and mint coins, and branches of their treasury to collect taxes and hold gold and silver stock.

Describe the intensity of fluctuations in the market prices. A change in the volatility level hints at a coming change in the price. Volatility is a general term used to describe the magnitude, or size, of day-to-day price fluctuations independent of their direction. Generally, changes in volatility tend to lead changes in prices.