History of Gold

2. Part
Classic Gold Standard (1816 – 1914)
Interwar Period (1918 – 1939)
1. CLASSIC GOLD STANDARD 1816 – 1914

1. British Pound becomes reserve currency

2. American Civil War let to gold price
increase
3. Gold price spiked at Black Friday 1834
4. “Gold Standard Act” of 1900: gold
became an official instrument of payment
 2.1 INTERWAR PERIOD 1918 - 1939

1. During wartime, central banks abolished

the gold standard to be able to print more
paper money
2. After the war, countries returned to a
partial gold standard in an uncontrolled
way. This let to the collapse of the new
gold standard
 2.2 INTERWAR PERIOD 1918 - 1939

1. The stock market crash of 24 th October

1924 (Black Thursday) set the begin of the
world economic crisis
2. The gold standard prevented the US
treasury to print money this resulted in
bankruptcies of many businesses
 2.3 INTERWAR PERIOD 1918 - 1939

1. Franklin D. Roosevelt prohibited in 1933

the private possession of gold
2. Gold coins, bars and certificates had to be
exchanged for a fixed price of US$ 20.67
per ounce
3. This prohibition was only abolished 40
years later
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