Has the price of gold even been re-valued or devalued by a US President or the US Government? And if yes, is there a paper documenting the details of that occurrence?
Thanks for the help.
When FDR confiscated gold, it was valued at $20/ounce, and then revalued to $35 an ounce.
When Nixon closed the Bretton Woods gold exchange window, gold was valued at $35 an ounce, and thereafter went to a floating rate.
Both cases were revaluations, both cases were devaluations.
And in my opinion, both cases were defaults.
Thanks for the quick reply! Can you provide some links to the facts surrounding these 2 instances? I need to have my story straight and facts in line before talking to my Keynesian friend who is certain that gold is beyond the means of being manipulated in any sense of the word.
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This has a bit of history. Shows insight on how gold price fixing is a common practice. Nothing surprising. There is an underlying market demand even though the price is fixed centrally periodically. Real-time Example: London fixes the price of gold twice daily. Thus It is centrally fixed. Yet in the open market gold might be found for various prices that depend on consumer-buyer.
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This news article gave the actions of various countries on their buying and selling of gold. The buying and selling in and of itself is a market effect and done by governments is thus governments effecting the market.
[google “1970’s gold” or “gold $35”, etc… and a lot comes up due to those are historical price fixings by the U.S. The Constitution even states Congress is to: “To coin Money, regulate the Value thereof, and of foreign Coin, and fix the Standard of Weights and Measures”. Note: “regulate the Value”. That’s central planning and the U.S. has acted upon this throughout its history]