On August 15, 1971, Nixon resolved the conflict by effectively ending the U.S. gold standard policy.
FORBES: Mind-Bending Idiocy Is The Reason We Don't Have A Gold Standard Today
The first signs of deflation could lead to a harsh sell-off in gold, but policy makers, particularly in the United States, are keen to avoid such a scenario.
The Dow sunk one more time, all the way to 770 in 1982, when the Federal Reserve began targeting the price of gold in monetary policy and the big Reagan tax cuts started to phase in.
In the case of a gold standard system, the policy target is to create a currency whose value is fixed to gold.
Participants who see higher prices said given the long-term fundamental backdrop of ultra-loose monetary policy, gold will be underpinned.
FORBES: Opinions For Gold's Direction Next Week Are Divided Among Survey Participants
Gold edged up as policy-setters signaled low rates would continue until mid-2015 and monetization of debt would continue, said Zachary Oxman, portfolio manager for TrendMax.
FORBES: Comex Gold Futures Pare Loss Slightly After FOMC Statement
Loosening an already-accommodative policy helps gold several ways, starting with weakness in the U.S. dollar that in turn tends to support gold and other commodities.
FORBES: Gold Extends Gains As FOMC Minutes Show Some Consideration Of More Easing
"We're printing more money than ever in the U.S., " Mr. Sherman said, so he considers gold "an insurance policy" against a decline in the value of the dollar.
From Kansas City, Missouri, Kauffman, which maintains the gold standard of entrepreneurial policy, seeks to wean Washington from its addiction and put America back on the road to national greatness.
And while this columnist considers the gold standard to be the gold standard of monetary policy it will need to make its case empirically, rather than doctrinally, before a neutral body.
FORBES: Forget Howard Jarvis And A California Tax Revolt, Is A Money Revolt On The Way?
"Although some of the growth is in states with large Latino populations, like California and Florida, some of the growth is also occurring in places that people don't see as having large Latino populations, " said Rosalind Gold, director of policy research at the National Association of Latino Elected Officials.
Bulls cite the underlying fundamentals for gold, including the ultra-loose monetary policy by most global central banks as keeping the gold supported for the time being.
FORBES: Metals Outlook: Getting Ready For Last Full Week Of Trading For 2012
Germany has also reversed its 2011 policy of keeping gold abroad to ease the raising of foreign currency.
FORBES: The Germans Want Their Gold Reserves Back in Germany
It has cultural roots, but it also is a measure of national economic policy to promote gold as a savings device.
FORBES: Chinese Removing All Barriers That Inhibit Gold Investing As National Sport
Those who see higher prices said the underlying fundamentals that have supported gold lately, namely ultra-loose monetary policy and continued uncertainty over the global economy, have not changed, which underpins gold.
Those who see higher prices said gold remains underpinned by easy monetary policy from global central banks.
FORBES: Gold Survey: Mixed Outlook For Gold Prices Next Week
For other countries, we can refer to Monetary Policy Under the International Gold Standard: 1880-1914, by Arthur Bloomfield.
FORBES: The 1870-1914 Gold Standard: The Most Perfect One Ever Created
While she has not yet explicitly called for gold it is not unlikely that gold will emerge as her preferred policy.
The Federal Reserve was obliging rule-based behavior that probably included making the price of gold a primary determinant in monetary policy.
There remains a bevy of potentially bullish factors looming for the gold market, including potential US policy stalemate in Washington D.
FORBES: Technical Trading: Gold Bulls Snap Back From Last Week's Decline
How would the gold market react to such a policy?
FORBES: Opium Wars Revisited: Will China Corner The Gold Market?
Auditing the Fed, replacing Fed monetary policy discretion with a mandatory price rule governing policy, even the gold standard, Nobel Laureate Friedreich Hayek pushed the envelope beyond all of these.
FORBES: Rethinking Money: The Rise Of Hayek's Private Competing Currencies
Like most of his economist peers Bernanke thinks that the traditional gold standard, which governed monetary policy in Great Britain and eventually elsewhere from the early 1700s to the 1930s, caused or at least deepened the Great Depression.
Central banks were still selling gold heavily in the new millennium, but with Fed and Treasury policy decidedly moving in a different direction in favor of dollar weakness, gold spiked alongside all commodities and another cheap dollar era began.
That policy mix, of which gold is an improvement, quickly generated 20 million jobs.
FORBES: Dear Liberals: It's Your Fed's Paper Money That's Thwarting Full Employment
Others mentioned the general backdrop of ultra-loose monetary policy as continuing to underpin gold prices.
FORBES: Survey Participants Have A Mixed Outlook For Gold Prices Next Week
They would probably bid the price of gold above the benchmark price once this policy achieves credibility.
FORBES: Opium Wars Revisited: Will China Corner The Gold Market?
Gold bugs see reckless monetary and fiscal policy leading to plummeting currency values and out of control global inflation.
FORBES: The Fight of the Century: Bond Buyers versus Gold Bugs
应用推荐