Gold rising
In 1933, an event occurred in the United States that essentially ended the Great Depression era. The country's economy was in crisis, and the government decided to nationalize all gold from citizens.
It was announced that gold coins and bars could now not be with citizens, and it was ordered to surrender them voluntarily and compulsorily in exchange for dollars.
In 1933, an event occurred in the United States that essentially ended the Great Depression era. The country's economy was in crisis, and the government decided to nationalize all gold from citizens.
It was announced that gold coins and bars could now not be with citizens, and it was ordered to surrender them voluntarily and compulsorily in exchange for dollars.
The exchange rate was set like the gold standard: 20 dollars and 67 cents per troy ounce. People were literally forced to give up their gold reserves so the government could print more money.
When gold came in exchange for dollars, this money immediately went into the economy and stimulated its activity.
A year later, when people were giving their gold at $20 67 cents an ounce, the Gold Reserve Act was passed. Firstly, he banned the exchange of dollars for gold and secondly, he set a new price - 35 dollars per ounce.
Imagine this situation: citizens gave their gold for $20 67 cents, and then were informed that its value is now already $35. The government made money from it.
So we have a dollar that becomes the center of the global monetary system and global payments. The dollar is backed by gold, it can be exchanged for it, and other currencies can be exchanged for dollars. Where did that lead?
Many countries have decided that it is also beneficial for them to bring their gold to the US and exchange it for dollars. So the USA printed more and more dollars, and the currency itself was actively used all over the world.
But the Bretton Woods system (the dollar is backed by gold) was not destined to become the end point in the development of world monetary systems. The more the dollar is used in the world, the more it is needed.
But if the dollar is really backed by gold, then you can't just take more dollars and print them.
French President Charles de Gaulle decided to exercise his right based on the Bretton Woods system: exchange dollars for gold. Dollars are backed with gold, which means they can be exchanged for this precious metal.
The US initially resisted this idea, saying the dollar is a reliable currency, why do we need gold? Nevertheless, they exchanged dollars for gold. Others followed suit, which had a negative impact on the dollar and its hegemony in the world.
Then the USA began to think about how they could get out of this situation.
In 1971, President Richard Nixon announced that the United States was unilaterally eliminating the exchange of dollars for gold. Now everyone can use dollars, but there is no exchange for gold.
That is, what the United States did to its own citizens in the 1930s has now been repeated to the entire world.
After the dollar was decoupled from gold, the precious metal became a floating asset and showed a key period of growth, increasing tenfold.