Share This Article

Facebook LinkedIn
Twitter Reddit
Print Email
Pinterest Gmail
Yahoo
Money Morning
×
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
  • Retire
    • Income Investing Guide
    • Retirement Articles
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
Login My Member Benefits Archives Research Your Team About Us FAQ
  • Invest
    • Best Stocks to Buy
    • Stock Forecasts
    • Stocks to Sell Now
    • Stock Market Predictions
    • Technology Stocks
    • Best REITs to Buy Now
    • IPO Stocks
    • Penny Stocks
    • Dividend Stocks
    • Cryptocurrencies
    • Cannabis Investing
    • Angel Investing
    ×
  • Trade
    • How to Trade Options
    • Best Trades to Make Now
    • Options Trading Strategies
    • Weekly Trade Recommendations
    ×
  • Retire
    • Income Investing Guide
    • Retirement Articles
    ×
  • More
    • Money Morning LIVE
    • Special Investing Reports
    • Our ELetters
    • Our Premium Services
    • Videos
    • Meet Our Experts
    • Profit Academy
    ×
  • Subscribe
Enter stock ticker or keyword
×
Join 100,000+ Like-Minded Investors Today
Twitter
Tags: Gold Standard

U.S. Gold Standard Debate Heats Up on 40th Anniversary of "Nixon Shock'

By David Zeiler, Associate Editor, Money Morning • @DavidGZeiler • August 16, 2011

View Comments

Start the conversation

Comment on This Story Click here to cancel reply.

Or to contact Money Morning Customer Service, click here.

Your email address will not be published. Required fields are marked *

Some HTML is OK

When U.S. President Richard M. Nixon announced on Aug.15, 1971 that the United States would no longer adhere to the gold standard - the mechanism that fixed the U.S. dollar's value to that of gold − the move was cheered.

The Dow Jones Industrial Average jumped nearly 4%, and The New York Times gushed, "We unhesitatingly applaud the boldness with which the President has moved."

But now, 40 years later, there is a new gold-standard debate and the decision is being examined anew.

Proponents say the move had to be made, since the gold standard needlessly restricted the U.S. Federal Reserve's ability to manage the money supply, particularly during times of economic distress.

To critics, however, the once-heralded decision has lost much of its former luster. They say that abandoning the gold standard has served only to devalue the dollar, making everything else comparatively more expensive.

Sign up for SMS so you never miss special events, exclusive offers, and weekly bonus trades.

Here at Money Morning we've talked about the implications of the gold standard debate, as well as how our readers can capitalize on gold as a safe-haven investment - especially given the "yellow metal's" ever-increasing value versus the dollar.

Since the dollar became a "floating" currency 40 years ago, it has plummeted in value against gold. In 1971, a dollar was worth 1/35 of an ounce of gold; today it is worth about 1/1,750 of an ounce.

A return to the gold standard "would solve the unemployment problem, because expensive capital makes people use more labor," Money Morning Contributing Editor Martin Hutchinson said recently. "And it would indeed enforce fiscal discipline."

The gold-standard debate is a topic that we've studied here at Money Morning - as part of our ongoing analysis of the ever-changing global-investing environment. On this auspicious anniversary, we're making these reports available to you from our archives, free of charge.

For instance:

  • To read more about the benefits of a return to the gold standard - and why Washington will probably never do it, click here.
  • To read more about the dollar's demise and how to protect yourself from it, click here.
  • To read about how the sale of now-unused U.S. gold reserves could help reduce the national debt, click here.
  • To read Money Morning metals commodity expert Peter Krauth's prediction on how high the price of gold will go, click here.
[Editor's Note: We're making $26,000 of our very best investment advice available to charger subscribers of our new Private Briefing service - for $5. Each day, Money Morning Executive Editor William Patalon III has one-on-one "private briefings" with our individual gurus. This new service is designed to provide readers with access to some of those briefings. We're offering this special rate to charter subscribers. To find out more, please click here.]

News and Related Story Links:

  • Bloomberg BusinessWeek:
    The Nixon Shock
  • Wikipedia:
    Nixon Shock
  • MarketWatch:
    Gold-standard debate back, 40 years after Nixon
    .
  • WhiteHouse.gov:
    Richard M. Nixon
    .
  • Money Morning News:
    How You Can Get a Private Briefing From Our Global-Investing Gurus
  • Private Briefing:
    Official Website
    .

Join the conversation. Click here to jump to comments…

David ZeilerDavid Zeiler

About the Author

Browse David's articles | View David's research services

David Zeiler, Associate Editor forĀ Money MorningĀ at Money Map Press,Ā has been a journalist for more than 35 years, including 18 spent atĀ The Baltimore Sun. He has worked as a writer, editor, and page designer at different times in his career. He's interviewed a number of well-known personalities - ranging from punk rock icon Joey Ramone to Apple Inc. co-founder Steve Wozniak.

Over the course of his journalistic career, Dave has covered many diverse subjects. Since arriving atĀ Money MorningĀ in 2011, he has focused primarily on technology. He's an expert on both Apple and cryptocurrencies. He started writing about Apple forĀ The SunĀ in the mid-1990s, and had an Apple blog onĀ The Sun's web site from 2007-2009. Dave's been writing about Bitcoin since 2011 - long before most people had even heard of it. He even mined it for a short time.

Dave has a BA in English and Mass Communications from Loyola University Maryland.

… Read full bio

Login
guest
guest
1 Comment
Oldest
Newest Most Voted
Inline Feedbacks
View all comments
aloha bobby
aloha bobby
11 years ago

As I have watched the economic crisis unfold (and unfold some more) I cast about for something to do with my money. People kept saying "gold." But I stayed skeptical for a long time.

Like most people in our generation, I am an avid reader of the news and GOLD as a hedge kept popping up as a topic in relation to the uncertainty in Washington, Wall Street, Europe.

But the only kind of "hedge" I knew was the kind that went around the yard.

So, I asked an older friend of mine (near 80 at the time and a Wall Street maven his whole life – old school). When he said "gold may be the only answer right now," it finally persuaded me to dabble. But I was really just a dabbler. Nothing more. That, however, changed.

I won't give you a rags-to-riches routine, because a) I wasn't wearing rags and b) the returns have been delightful, but I haven't won the lottery or anything like that.

What I learned is that the trick is staying on the right side of the gold behemoth. Long or short.

There is so much money to be made whether gold is on the uptick or down-tick. Just have to know when to get in and get out. The "how" is, as always, the sticking point.

For what seemed like the longest while, I was in the gold markets but not really OF them. I didn't get the whole dynamic.

Like everyone else, I was skeptical of ANY forecaster: how can anyone figure this out?

But Gary Wagner of the Gold Forecast is shockingly accurate. It is truly uncanny. So, I am recommending him and his small, stellar company.

Be sure to try the free subscription. It actually is free and they don’t bug you. Nothing to lose, I’m just saying, Gary Wagner of the Gold Forecast is shockingly accurate. It is truly uncanny.

0
Reply


Latest News

June 5, 2023 • By Nick Black

This Tech Stock is Poised for Pick and Shovel Profits from the AI Revolution Ā 

June 5, 2023 • By Garrett Baldwin

The (Horrible) Truth About the Vienna OPEC Meeting

June 5, 2023 • By Shah Gilani

earnings
The Best Commodities Stock to Buy Right Now
Trending Stories
ABOUT MONEY MORNING

Money Morning gives you access to a team of market experts with more than 250 years of combined investing experience – for free. Our experts – who have appeared on FOXBusiness, CNBC, NPR, and BloombergTV – deliver daily investing tips and stock picks, provide analysis with actions to take, and answer your biggest market questions. Our goal is to help our millions of e-newsletter subscribers and Moneymorning.com visitors become smarter, more confident investors.

QUICK LINKS
About Us COVID-19 Announcements How Money Morning Works FAQs Contact Us Search Article Archive Forgot Username/Password Archives Profit Academy Research Your Team Videos Text Messaging Terms of Use
FREE NEWSLETTERS
Total Wealth Research Power Profit Trades Profit Takeover Penny Hawk Trading Today Midday Momentum Pump Up the Close
PREMIUM SERVICES
Money Map Press Home Money Map Report Fast Fortune Club Weekly Cash Clock Night Trader Microcurrency Trader Hyperdrive Portfolio Rocket Wealth Initiative Extreme Profit Hunters Profit Revolution Quantum Data Profits Live Trading Alliance Trade The Close Inside Money Trader Expiration Trader Flashpoint Trader Darknet Hyper Momentum Trader Alpha Accelerators Weekly Profit Cycles Brutus Alerts Resource Traders Alliance

Ā© 2023 Money Morning All Rights Reserved. Protected by copyright of the United States and international treaties. Any reproduction, copying, or redistribution (electronic or otherwise, including the world wide web), of content from this webpage, in whole or in part, is strictly prohibited without the express written permission of Money Morning.

Address: 1125 N Charles St. | Baltimore, MD, 21201 | USA | Phone: 888.384.8339 | Disclaimer | Sitemap | Privacy Policy | Whitelist Us | Do Not Sell or Share My Personal Information

wpDiscuz