The 15th of August, 2021, will mark as the 50th anniversary of the abandonment of the gold standard in the US. Although gold still looked the same, a drastic change occurred in its value over the years.
The country abandoned the gold standard quite successfully in 1933, and went on to fully break the link between the dollar and gold in the year 1971
Nearly fifty years ago, when it was abandoned, it valued at a mere figure of 35 US dollars per ounce. Forty years later, its value increased over 50 times in 2011, not only in the US dollars but in every known currency.
Back then, it exceeded the 1800 US dollars per ounce mark. Today, its value is a lot higher.
According to James Turk, the founder of GoldMoney, the price of gold increased significantly, which worried people about inflation and the purchasing power of their money. As a result, further driven by decreasing interest rates, they started buying more gold.
In October 2003, he predicted that the price of gold would reach 8000 US dollars per ounce between 2013 and 2015, and he blamed the bad monetary policies of politicians and central bankers for it. While we?re still far from reaching this amount, the fact remains that the shiny yellow metal has increased rapidly in prices over the last few years.
The Vice President of Marketing and Economic Research at New Orleans Bullion Dealer Blanchard and Co., David Beahm, called gold the 'best investment' as its price was sure to rise, and this allowed the investors to protect themselves from bankruptcy.
On the other hand, traditional investors did not agree with David Beahm. They considered gold to 'not have any intrinsic value', so there were a lot of different opinions about it back in the day.
But, as its price rose with every passing day, it sure proved to be a wise choice.