Military Review

Half a century without gold. For the anniversary of the abolition of the gold standard

38

August started in March



In March 1971, when the first reports appeared about the preparation of the United States to abandon the free exchange of dollars for gold, the era of the gold and foreign exchange standard actually ended. Such plans for the Republican administration of Richard Nixon did not appear out of the blue, because the Bretton Woods system was bursting at the seams.

The reason was well known. After World War II, the United States continuously flooded the world with billions of unsecured dollars. Political adventures such as the Cuban missile crisis and Vietnam, as well as the economic recovery of Western Europe and Japan, soon worked against the dollar.

Even then, there were attempts to return from American vaults a part of the gold deposited under the "gold bonds", the issue of which began in 1934. It was one of the tools that worked well against the Great Depression.

Later, gold from the reserves of countries that became victims of the attack of the Third Reich turned out to be in the United States, and then a significant part of the Nazi gold. For the French President Charles de Gaulle personally, the operation with the return of part of the gold reserve from American vaults was very expensive - not without reason it is believed that this was one of the reasons for his resignation in April 1969.


And 1971 began with the withdrawal from the Bretton Woods system of the Federal Republic of Germany, the authorities of which had previously released the Deutschemark. And then, following de Gaulle's example, they resolutely exchanged five billion dollars for gold at once. And already in March, analysts absolutely accurately predicted that the dollar would be "untied" from gold.

It happened.

Although only on August 15, President Richard Nixon officially announced the suspension of the convertibility of the dollar into gold. And temporary. However, this was a real shock for the whole world - what happened was called

Nixon Shock.


The Americans themselves have once again skimmed the cream, devaluing the billions of dollars that they had generously endowed the world with.

Moreover, the "skimming" could have started earlier. But in just three days in May 1971 (from 3rd to 5th), according to some estimates, at least a billion dollars were sold. Which led to a strong drop in its rate.

But the main thing was the immediate rise in gold prices, an ounce of which, instead of $ 35, began to be quoted at 45 and above. At the same time, the Nixon team postponed the official devaluation of the dollar again until August.

Not all that is gold


Few now remember that the United States moved away from the gold standard much earlier than everyone else. And even before Bretton Woods, when the gold-dollar standard was legalized. Then there were slightly less radical decisions, such as the adoption of the Marshall Plan and the organization of the International Monetary Fund.

The refusal to directly link money to gold, which happened exactly fifty years ago, did not turn thousands of tons of gold, which the countries of the world now have, into reserves of a metal that no one needs. And the point here is not at all that real gold is still an important raw material for both jewelry and a number of other industries.

It seems that it is more important for the world to have some kind of tangible reference point, on which it will be possible to rely, even when everything (or almost everything) will go to the "remote place". The experience of dealing with gold in a short (still) era of a pandemic convincingly shows that the demand for gold will not go anywhere for many years to come.

Half a century without gold. For the anniversary of the abolition of the gold standard

Historically, gold has become the basis for the standard not only because it was quite expensive. But at the same time it was not hopelessly scarce either. Gold was preserved in almost any conditions. Its reserves were not so difficult to divide. And top up if necessary.

But the main thing is that it was convenient for everyone, everywhere.

And any more or less prepared person could make sure that there was gold in front of him (simply by external signs). And no one anywhere, for many centuries in their right mind, refused to accept gold as payment.

It is not at all just that, and today those states whose economies are growing well (despite the notorious Covid in all its variations) and without any gold are actively replenishing their gold reserves. It is not just that Elon Musk and George Soros do not refuse gold. President (now former) Donald Trump did not refuse him either.

Even global projects (like the long-suffering Nord Stream 2), the Iranian atom and the Silk Road are being implemented not without regard to the first of the metals. China, in general, went to an unprecedented decision, offering the countries of Eurasia along the Silk Road the opportunity to increase the share of gold in the provision of their currencies.

In parallel with this, the PRC announced plans to increase the volume of the state gold investment fund, formed initially for a modest $ 16 billion.

Noble deficit


The growing demand for gold correlates well with the exchange games in oil, when a very small part of the contracts concluded is supported by real goods. Only with gold, this tendency manifests itself even more clearly - simply because there is hundreds of times less of it in circulation. And no more than 0,2 percent of transactions are backed by physical gold.

The acute shortage is not only due to demand from India and China, which continue to buy gold in huge quantities, providing more than 50% of global consumer demand (jewelry, gold bars and coins). According to the estimates of the World Gold Council (WGC), demand in the coming years will at least remain at the same level.

Among the reasons for the deficit is the fact that Russia (one of the largest gold miners in the world) does not sell most of the gold mined now, but stores it in reserves. It's also a matter of speculation, when trading in air (that is, including futures) brings no less profit than a simple sale of bullion.

At the same time, on the New York Stock Exchange Comex, one of the world's largest sites for trading this precious metal, it took a tremendous effort to stem the outflow of gold. Indeed, shortly before the pandemic, its stocks there fell by almost ten times compared to August 2015.

Money, as is well known, is nothing more than a surrogate for trust. Mutual trust: on the part of both the seller and the buyer. For centuries, humanity has believed almost exclusively in gold. And all attempts to replace him with something else ended in either riots or wars.

However, faith in the word of honor of a banker, merchant, and best of all - the head of state, became the basis for the appearance first not of gold, but some other bargaining chips, then paper money. And finally, more recently - electronic currencies.

Don't worry for a dollar


The dollar, as we see, after it was "untied" from gold, depreciated many times. But it has by no means ceased to be the world currency. And seriously consider the bet on gold, made by many, an attempt to really undermine the position of the dollar, can only be naive.


Is it worth repeating that the dollar, as a world currency, has not been dependent on the world gold price environment for a very long time. Even if someone wants (for the sake of experiment) to buy up all the gold in the world, this is unlikely to seriously affect the dollar. Moreover, now, in the era of electronic payments.

Whoever invests in gold invests in something eternal, not aging and not losing demand. At least for the foreseeable future. Liquidity is guaranteed. And changes in price, as a rule, happen much more often in favor of such an asset than to its detriment.

Plus, gold is a good asset diversification tool that is less risk-proof than anything else.
Author:
Photos used:
madison.com, reddit.com, faradeed.ir
38 comments
Information
Dear reader, to leave comments on the publication, you must sign in.
  1. FIR FIR
    FIR FIR 18 March 2021 15: 16
    +1
    Time runs. Everything passes. And only gold is always valuable. Unique metal.
    1. Asad
      Asad 18 March 2021 15: 31
      -3
      Metal itself is definitely, but digital, falls! But Bitcoin costs 60 thousand dollars.
      1. FIR FIR
        FIR FIR 18 March 2021 15: 32
        +7
        Quote: ASAD
        But Bitcoin costs 60 thousand dollars.

        All this is not for long.
        1. Asad
          Asad 18 March 2021 15: 34
          +1
          Well, they will catch up to a hundred square meters, dollars must be disposed of somewhere.
          1. boni592807
            boni592807 18 March 2021 19: 26
            +1
            ASAD (Nikolay), Today, 15:34 - Well, they will catch up to a hundred square meters, dollars must be disposed of somewhere.

            Not only dispose of, love but, galloping to drop all debts and bubbles of the US budget on the holders of these "priceless" securities in the WORLD crying .
            And to say with an innocent look, "... these are debts of that office" Horns and Hooves "(vice-chairman Zits) am , but we are completely different, only we have real Values ​​(bitcoin, amero or ...) and WE are "Hooves and Horns" !!! repeat bully
        2. Lannan Shi
          Lannan Shi 18 March 2021 16: 14
          -1
          Quote: FIR FIR
          All this is not for long.

          You absolutely precisely quoted the phrase that was sounded to me when he was 5000. lol
          In fact, both the cue ball and the gold are of the same order. Gold .... well, in some places in the industry can be used. The cue ball is convenient for calculations. And they are of some value only as long as there is a consensus that they are value, not rubbish. And so ... it is far from a fact that in 1000-2000 years, the same gold coins will not pass through the same section with cowrie shells. And that your descendants will not think that their ancestors were absolute savages, with some kind of fright who appreciated a very lousy and unsuitable metal. yes
          1. K150
            K150 18 March 2021 17: 32
            +4
            Quote: Lannan Shi
            Quote: FIR FIR
            All this is not for long.

            You absolutely precisely quoted the phrase that was sounded to me when he was 5000. lol
            In fact, both the cue ball and the gold are of the same order. Gold .... well, in some places in the industry can be used. The cue ball is convenient for calculations. And they are of some value only as long as there is a consensus that they are value, not rubbish. And so ... it is far from a fact that in 1000-2000 years, the same gold coins will not pass through the same section with cowrie shells. And that your descendants will not think that their ancestors were absolute savages, with some kind of fright who appreciated a very lousy and unsuitable metal. yes

            Well, yes, for more than 3 thousand years people fought for the sake of gold and silver, and then suddenly, after 2 thousand years they will abandon it and throw it out, can you stop reading fictional fiction?
            1. Roman070280
              Roman070280 19 March 2021 12: 57
              -1
              For thousands of years, people prayed to the Sun and made sacrifices for the sake of rain ..

              Therefore, it is true and noted
              your descendants will not think that their ancestors were absolute savages, with some kind of fright, who appreciated the very lousy, and unsuitable metal.


              Lannan Shi She wrote down her arguments on this matter quite reasonably.
              And from the refutations only "stop reading fancy fiction"


              for more than 3 thousand years people have fought for gold

              By the way .. now they are fighting for the dollar ..
              And for 3 thousand years in a row, all those who would have fought for the sake of paper would have been called idiots ..
              So - not an indicator ..
          2. ccsr
            ccsr 18 March 2021 17: 36
            0
            Quote: Lannan Shi
            And that your descendants will not think that their ancestors were absolute savages, with some kind of fright who appreciated a very lousy and unsuitable metal.

            This statement is not supported by anything, especially since the total amount of gold on Earth is limited, but the most important thing is that this metal does not oxidize and does not change its properties even after a thousand years.
            So for gold, as well as for fresh water, there will always be a line of those wishing to use it.
            1. Roman070280
              Roman070280 19 March 2021 13: 01
              -1
              this metal does not oxidize and does not change properties

              It sounded like some kind of advantage ..))
              Only here .. what ??)
              A plastic or glass bottle also does not oxidize for a long time .. and does not change its properties ..
              1. ccsr
                ccsr 19 March 2021 13: 20
                +3
                Quote: Roman070280
                It sounded like some kind of advantage ..))
                Only here .. what ??)

                For example, everything that is made of gold a couple of thousand years ago, like "Scythian gold", has an enormous value at any auction, and is an excellent way to save capital from inflation in any currency of the world.
                Quote: Roman070280
                A plastic or glass bottle also does not oxidize for a long time .. and does not change its properties ..

                An ancient glass bottle also costs money at auction if it's a couple thousand years old. I can't say anything about ancient plastic - apparently it hasn't survived ...
                1. Roman070280
                  Roman070280 19 March 2021 13: 25
                  -2
                  For example, everything that is made of gold a couple of thousand years ago, like the "Scythian gold", it has an enormous value at any auction

                  So what does gold have to do with it ?? An ancient leather book or rock carvings carry the same value ..

                  An ancient glass bottle also costs money at auction if it's a couple thousand years old.

                  That is, gold itself does not carry any special value ..

                  I can't say anything about ancient plastic - apparently it hasn't survived ...
                  They did not make it in those days .. but after 1000 years there will be a lot in his land ..))
                  1. ccsr
                    ccsr 19 March 2021 13: 44
                    +2
                    Quote: Roman070280
                    So what does gold have to do with it ?? An ancient leather book or rock carvings carry the same value ..

                    The skin collapses, rock paintings disappear, and scenes from the life of the Scythians in gold, and in five thousand years will be in value.
                    Quote: Roman070280
                    That is, gold itself does not carry any special value ..

                    For you, it may not, but for the peoples of India and China, buying up 50% of it, it probably does. If you were Chinese, then gold would be valued differently.
                    Quote: Roman070280
                    They did not make it in those days .. but after 1000 years there will be a lot in his land ..))

                    It will collapse anyway, so it is unlikely to replace gold. As for "did not do", I thought that you would understand my irony ...
                    1. Roman070280
                      Roman070280 19 March 2021 14: 13
                      -1
                      The skin collapses, rock paintings disappear, and scenes from the life of the Scythians in gold, and in five thousand years will be in value.
                      Hospadi .. Do you seriously want to convince me that the value of gold is in the preservation of historical heritage ??) That is why people bought it 3 thousand years ago, right ??)
                      Where are the scenes from our life in gold ?? What will we be looking at in five thousand years?

                      For you, it may not, but for the peoples of India and China, buying up 50% of it, it probably does. If you were Chinese, then gold would be valued differently.
                      What do I have to do with the Chinese or not .. Dollars are buying much more than gold .. And what conclusion can be drawn on this basis ??)


                      It will collapse anyway, so is unlikely to replace gold.

                      Will replace what ??)
                      Do we make scenes from our lives out of gold for posterity, so that they will see us in five thousand years ??)
                      Much done ??)
                      I repeat - the historical value is not in gold .. In 500 years, some CRT-shny kinescope will be valued no less !! Paintings of artists do not contain gold, but they are of no less value .. Do not mix warm with wet ..))
                      1. ccsr
                        ccsr 19 March 2021 18: 51
                        0
                        Quote: Roman070280
                        Do you seriously want to convince me that the value of gold is in the preservation of historical heritage ??)

                        I have given you a completely different reason for the love of gold - it practically does not disintegrate, and objects made from it can be stored for many millennia. Faberge eggs will be appreciated in a thousand years.
                        Quote: Roman070280
                        Where are the scenes from our life in gold ??

                        Tsar's chervonets are already a rarity, and Faberge products are collected by millionaires.
                        Quote: Roman070280
                        Dollars are buying much more than gold .. And what conclusion can be drawn on this basis ??)

                        Dollars are subject to inflation, but the price of gold is constantly growing. I found a time when they gave $ 35-37 per ounce. It's a pity in my time gold was not sold in banks, I would not have lost if I had bought it then.
                        Quote: Roman070280
                        Do we make scenes from our lives out of gold for posterity, so that they will see us in five thousand years ??)

                        Do not slow down - now gold is stored in bullion.
                        Quote: Roman070280
                        The artists' paintings do not contain gold, but they are of no less value ..

                        They are prone to aging and decay, unlike gold - you just don't want to take that into account.
          3. ANB
            ANB 20 March 2021 00: 22
            +2
            ... The cue ball for calculations is convenient

            And why is it convenient? It's even hard to come up with a more inconvenient translation system.
    2. Civil
      Civil 18 March 2021 15: 37
      0
      Quote: FIR FIR
      19.02.2021/13/XNUMX For the first time in XNUMX years, the Bank of Russia records a decrease in physical gold reserves in international reserves.
      By the end of January, the storage facilities of the Central Bank of the Russian Federation lost at least another two tons of precious metal, Interfax reports, citing the statistics of the regulator.
      Having started the month with 73,9 million ounces, by the end of the month, the central bank reported on the availability of 73,8 million.

      It is impossible to establish the exact volume of transactions: in the Central Bank statistics, the weight of gold is rounded to one decimal place. 100 thousand ounces (the maximum possible sales volume) is approximately equal to 4 tons of bullion, Interfax notes.
      Gold leaves the Central Bank for the third time in the past seven months. Earlier, the IMF recorded a reduction in Russia's reserves by 40 thousand ounces. The deals took place in July (by 10 thousand ounces) and in September (by 30 thousand).
      Relative to July, the gold reserve of the Central Bank of the Russian Federation could have lost 140 thousand ounces, or 5,6 tons, follows from the data of the IMF and the statistics of the regulator.
      The last time the gold reserves of Russia decreased in 2007 - by 1,2 tons in the first quarter.


      The propagandist explains in this article why Russia is selling gold. Because the "eternal dollar" is the conclusion of the author at the end of the article.
      1. evgen1221
        evgen1221 19 March 2021 13: 34
        0
        Now let's compare what happened before and after the sale of the gold.
    3. Jolly Roger
      Jolly Roger 18 March 2021 15: 53
      +5
      Quote: FIR FIR
      Everything passes. And only gold is always valuable.

      Yes ... It’s probably good for those who have a pot of gold dug in the garden, warms their souls by the very fact of their existence.
      1. Monster_Fat
        Monster_Fat 18 March 2021 18: 22
        +1
        Time runs. Everything passes.

        New investment vehicles are appearing. I don't want to make a "crypto-shit", just leave it here:
        1. dauria
          dauria 19 March 2021 00: 23
          +4


          Chu, "bitcoin". In currency, so is currency. It has grown 127 times in just six months. Where is your grocery cart .. laughing By the way, Seryoga Mavrodi also managed to stir up the Mavro cryptocurrency.
          During the period from the beginning of the sale of shares (February 1, 1994) until the arrest of Sergei Mavrodi (August 4, 1994), these prices increased 127 times. Growth rates averaged 50-70% monthly.
    4. zloybond
      zloybond 18 March 2021 18: 22
      +3
      In the end, this is a real measure. And the people are now being offered a figure - not even air - but something. I wanted to use bitcoin with air monetization - but at least it is necessary for life. There is nothing even to compare with. How they work. And in Russia, the bitcoin system for paying for a protest works well. Something came to the wallet, it was monetized here and the protest was paid for with internal money. Well done.
  2. Doccor18
    Doccor18 18 March 2021 15: 24
    +7
    The genius dollar scam continues ...
    1. Ross xnumx
      Ross xnumx 18 March 2021 15: 35
      +3
      And with the full transition to electronic money, the costs of producing paper money, their storage, collection, etc., etc., will disappear.
    2. Ingvar 72
      Ingvar 72 18 March 2021 15: 42
      +2
      Quote: Doccor18
      The genius dollar scam continues ...

      And only "our" brilliant leaders do not understand this. laughing Or pretend they do not understand.
      1. Doccor18
        Doccor18 18 March 2021 16: 49
        +2
        They all understand. They themselves are a part of this system ...
  3. rocket757
    rocket757 18 March 2021 15: 40
    +4
    Don't worry for a dollar

    This is true, they will publish more ... as long as they buy / store it as a liquid commodity, it will not suffer a lot.
    Of course, there is a limit to everything, but who indicated / designated / measured them? If someone dares, even more convincing arguments can fall on that one.
  4. Alien From
    Alien From 18 March 2021 16: 47
    +4
    There was an era of gold, now an era of paper, there will be an era of numbers! The world does not stand still)
    1. Monster_Fat
      Monster_Fat 18 March 2021 18: 53
      -1
      The era of crypto is a kind of revolution - for it is based on crypto-encryption and blockchain technology. What does it mean? And this means that when paying using crypto, all intermediaries such as banks, cash desks, etc. are removed (payment goes directly between the seller and the buyer), except for providers, Internet providers, and server holders, but even they can be removed using direct contactless or contact payments. That is, a person, paying for services and goods in crypto, becomes "invisible" - the state can track the fact of the transaction, but what and how much is transferred is not available to him, and with a contactless or contact method of payment, nothing can be tracked at all. That is why, so, states are afraid of crypto, because it gives freedom to citizens. And that's why the states are trying to introduce their "pseudo-crypto" - "digital money", replacing them with the very concept of "crypto" - saying that de "state crypto" is the same, the same, but it is a lie. For the "real" crypto is the "freedom and independence" of a person, the freedom to dispose of his resources, that is, the most important, fundamental principle of a free person is implemented - his presumption of innocence, regardless of the "wants of the state", and pseudo-crypto, on the contrary, is full of it ( person) control by the state, so that a person is always under control, as a suspect in advance. Unfortunately, many do not understand this.
      1. Alien From
        Alien From 18 March 2021 19: 08
        +4
        Society is not ready for cryptocurrency. The world too. If it is imposed, then it is beneficial to someone. Capital rules the world)
        1. Monster_Fat
          Monster_Fat 18 March 2021 19: 18
          -7
          Society is not just ready for crypto, it just longs for it. This refers to a normal society, and not those representatives of it who want to bleat in the barn, under the watchful eye of the shepherd and his dogs. States have turned into an instrument for suppressing national cultures and conquests, promoting initiatives incomprehensible to ordinary people - taking away cash, promoting feminism and gays, instilling a cult of minority leadership, etc. control of the financial situation of every citizen with the help of AI in the framework of the "digital concentration camp", into which all states are becoming. And the real crypto, on the contrary, was created just as a means of escaping the "annoying control" of states, which has already gotten all normal people. However, the real crypto is still vulnerable, as it depends on two conditions - there is still no wide possibility of direct payments and everything is tied to crypto exchanges, and they (exchanges) have masters. wink
        2. dauria
          dauria 19 March 2021 00: 51
          +1
          What does it mean? This means that when paying using crypto, all intermediaries are removed in the face of banks, cash registers, etc.


          Yeah right now laughing The state has fled to hand over to you the main instrument for regulating its economy. And it wanted to spit on your desires to have "its own independent currency". If he feels a threat, it will be like with gold in the USSR. Buy from the state, keep, admire under the covers. If you try to sell "past the cash register" - the term.
          1. Monster_Fat
            Monster_Fat 19 March 2021 01: 34
            -5
            Well ... let's just say, there is an opinion globally the world will soon be divided into two worlds-Territories of Advanced Development (by the way, it was the consolidation of this possibility that was the real reason for the changes in the Constitution of the Russian Federation), which will be interconnected by international relations within the framework of the "global state-corporation" and the rest of the metropolitan world, which will survive on residual resources to the best of their ability. And here everything will be interesting - what kind of crypto currency and where it will be installed as a means of payment and how it will be used and controlled. It is not a fact that it will be so, but there are enough authoritative people who believe that the world is going in this direction.
  5. Alexander X
    Alexander X 19 March 2021 09: 00
    +1
    Only a means of payment backed up by material support will be reliable. For money is essentially a materialized human labor. That is, produced values. Without the software, it is a pyramid like the Mavrodi pyramid. And dollars and bitcoins are exactly "pyramids". Gold itself is material security due to its limited amount.
  6. tralflot1832
    tralflot1832 19 March 2021 09: 19
    0
    Not understood? What to buy dollyars, gold or invest in children! And some of them even in grandchildren!
    1. ccsr
      ccsr 19 March 2021 13: 24
      +1
      Quote: tralflot1832
      What to buy dolyary, gold or invest in children!

      The third, partly the second, but not the first.
  7. certero
    certero 20 March 2021 07: 30
    0
    Some very weak article. I did not understand the purpose of writing it. Well, except to say that nothing will happen to the dollar
  8. Thomas the Unbelieving
    Thomas the Unbelieving 22 March 2021 18: 42
    0
    What is the problem? The states approve the monetary unit, but what is behind it, what can be bought for the ruble or the dollar, no state can determine if it does not tie this monetary unit to some measure. And this is a measure, in which taxes, taxes, levies are measured; what the state takes as a basis, as a unit of calculation. For a long time, for an illiterate or semi-literate population, some material objects were taken.
    The problem with the dollar is that it is the currency of a certain state, the amount of which is determined by the American budget and has nothing to do with the economy of other countries of the world. Therefore, it really cannot serve as a yardstick for foreign economic operations. Whatever one may say, but the exporter first compares the export price in foreign currency with the domestic price in the national currency, and then determines the exchange rate difference, which depends on someone else. Not very comfortable.
    I want to remind you that the USSR twice, in 1922 and 1950, untied its national currency from the dollar and introduced gold parity. Both times, these were successful operations leading to an economic revival.