Visit Last Minute Prepper Store --  Great Products, Great Prices. Fulfilled by Amazon.

History: Gold Standard and Gold Confiscation

By lastminuteprepper




In All Articles
Apr 29th, 2013
1 Comment
2655 Views

The gold standard was a period of time when the US currency was backed by gold. This kept inflation in check because it meant there was a limited amount of money in proportion to the gold reserves. Initially in the 1800 until 1930s 1 ounce of gold cost $20. For over 130 years that was the standard. Now it fluctuated some but by a dollar or two up and down. Then in the 1934s Franklin Delano Roosevelt changed the standard to $35 per ounce. Imagine this, your money overnight had half the buying power it did the night before. As well the year before FDR ordered all privately held gold to be confiscated. This was to make people have to use the dollar and force people to back it.

In 1971 Richard Nixon, removed the gold standard all together and since then we have been able to print money without the backing of gold. Since then the cost of buying gold has gone up immensely with todays market commanding 1400 per ounce of gold. Most people look at it as the value of gold going up, the truth of the matter is it’s the value of the dollar going down.

For instance in the 1920s you could buy a house for $2000-3000 gold as about $20 an ounce then meaning you would need 100 ounces of gold to buy the house. Now a similar house today it around $100,000 and gold is $1400 per ounce if you had that same 100 ounces of gold it would be worth $1,400,000. You can buy a pretty good house with that huh? So as soon as the USD was no longer connected to gold it’s buying power started to plummet. This is why gold is a great security net in your prepping and investing. However don’t listen to the analysts, buy physical gold, and hide it in your house. Buying paper gold in the form of gold certificates, stock in gold mines, etc don’t protect you if the world collapses.

1 Comment to “History: Gold Standard and Gold Confiscation”

  1. […] Today the relationship between gold and dollars is no longer direct and has been weakened by the removal of the gold standard. We are currently trading Fiat money that is nothing more then paper and people believing it’s […]

Leave a Reply