{"id":122,"date":"2010-01-06T10:35:28","date_gmt":"2010-01-06T17:35:28","guid":{"rendered":"http:\/\/goldcoinsrare.com\/?p=122"},"modified":"2010-01-06T10:35:28","modified_gmt":"2010-01-06T17:35:28","slug":"gold-and-the-us-dollar","status":"publish","type":"post","link":"https:\/\/www.itmtrading.com\/blog\/gold-and-the-us-dollar\/","title":{"rendered":"Gold and the US Dollar"},"content":{"rendered":"

Gold and the U.S. Dollar<\/a> were pegged for much of our history as a country. <\/span>We started minting gold coins<\/a> as currency in 1795, which were interchangeable into paper dollars. <\/span>We stopped using gold coins as currency<\/a> in 1933 when president Franklin Delano Roosevelt called in all gold bullion in order to revitalize the economy during the great depression. <\/span>At the time of the confiscation gold was pegged to the dollar at $20 per ounce. <\/span>After the confiscation was completed the government revalued gold at $35 per ounce, thus robbing the wealth of all paper dollar holders by 42%.<\/span><\/p>\n

<\/span><\/p>\n

Gold remained pegged to the dollar at $35 per ounce until 1971 when Nixon closed the gold window and removed us from the gold standard all together. <\/span>It should be noted that from 1933 to 1974 it was illegal to own gold bullion, but one could own numismatic gold as it was excluded from confiscation.<\/span><\/p>\n

<\/span><\/p>\n

The dollar and gold were then allowed to free float as it does today. <\/span>Some of the gains and losses in gold on a day-to-day basis can be attributed to the U.S. dollar but some of it comes from predominant buying and selling.<\/span><\/p>\n

<\/span><\/p>\n

Gold and the dollar fluctuated in step with each other until June of 2005. <\/span>Prior to this date if the dollar was down gold was up and vice versa. <\/span>In June of 2005 gold and the U.S. dollar decoupled from each other, and since then gold and the dollar have risen and fallen together and sometimes moved in opposite directions. <\/span>They are not directly tied to one another. <\/span>However, if the dollar decreases in value, the gold price in terms of dollars will rise. <\/span>For example, gold today is up $18.60 as of this writing, and the dollar is down .15 to 77.48. <\/span>Out of the $18.60 increase, $2.10 is due to a declining dollar and $16.50 is due to predominant buying.<\/span><\/p>\n

<\/span><\/p>\n

As time goes on we fully expect the dollar and gold to function as two separate currencies. <\/span>However if the U.S. has to return to a gold standard, gold will once again be pegged to the dollar.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Gold and the U.S. Dollar were pegged for much of our history as a country. We started minting gold coins as […]<\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1207],"tags":[69,73,125],"class_list":["post-122","post","type-post","status-publish","format-standard","hentry","category-blog","tag-gold-standard","tag-gold-values","tag-u-s-dollar"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/122","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/comments?post=122"}],"version-history":[{"count":0,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/posts\/122\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/media?parent=122"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/categories?post=122"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.itmtrading.com\/blog\/wp-json\/wp\/v2\/tags?post=122"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}