Feb 22, 2022

Important dates in the history of Gold

Ahd Emad
Minted™
Ahd Emad

Gold was used for thousands of years to create things such as jewellery, money and idols for worship. As the years passed, the use of gold has changed. However, families remained to buy Gold to secure their freedom and build wealth. 

 

With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future. Therefore, let’s take a look at important dates in the history of gold: 


 

1961

Gold ownership is prohibited in the United States as well as overseas

The United States Mint has ended its programme of buying gold from and selling gold to persons who have been granted gold holding licences by the United States Treasury. Federal Reserve Notes will no longer be backed by gold. 


 

1968

 The London Gold Market shutters for two weeks due to a rise in gold demand.

The gold pool's governors have announced that they would no longer buy or sell gold on the open market. 

In December, the United States devalued the currency by boosting the official dollar price of gold to $38 per fine troy ounce, as part of the Smithsonian Agreement signed in Washington. 

 

On August 15, the United States ended all gold sales and purchases, therefore terminating the conversion of foreign officially held monies into US dollars.


 

1971

Nixon Shock

The dollar's link to gold established under the Bretton Woods Agreement was broken by US President Richard Nixon. The dollar became the only currency with which member states could back their currencies, as well as a reserve currency. 

By June, the London gold market price had increased to more than $120 per ounce. Japan has lifted its ban on gold imports. 


 

1973

The United States devalues the dollar once more

On February 13, USA declared that the official dollar price of gold would be raised to $42.22 per fine troy ounce. Dollars are still being sold, and eventually all currencies will be allowed to "float" freely, regardless of the price of gold. 


 

1974

Americans were allowed to own gold for purposes other than jewellery. 

1975

The Commodity Exchange in New York and the International Monetary Market and Board of Trade in Chicago start trading gold for future delivery. 

1978

Gold is in high demand due to the weak US dollar

The official price of gold in the United States is abolished by Congress. Governments have complete freedom to buy and sell gold on private markets. 


 

1980

On January 21, 1980, gold reached an intra-day high of $870 in New York, before closing the year at $591. 

1987

 On October 19, 1987, global stock markets see a rapid reversal; turbulent investment markets boost gold trading activity. The World Gold Council was formed in order to maintain and grow gold demand among end users.


 

1990

The United States overtook Russia as the world's second-largest gold producer

1999

The euro is established as a pan-European currency, backed by a new European Central Bank that holds 15% of its reserves in gold

The Board of Directors of the Gold Institute voted to dissolve in 2002. 


 

2010

Zoellick advocates a return to the gold standard. 

Stating that the existing system of floating exchange rates, which has been in place since the post-war Bretton Woods System, in which the dollar and other currencies were pegged to the value of gold, broke down in 1971, has to be replaced.


 

2020

 Gold prices have surged 53% in the midst of the Coronavirus pandemic, exceeding 2011’s record high of $1,920.30 an ounce to an all-time peak of $1,943

The bottom line

Is it 2022 or 2020 part two? Even if it is, Gold did so well during the pandemic and every other crisis. 

Rest assured if you own physical Gold and if you don’t, Download the Minted App now and start building wealth effortlessly, from as little as £30 a month! 


 

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