Status of the Gold Standard in America

You remember the Gold Standard. Investopedia defines it like this: “The gold standard is a monetary system where a country’s currency or paper money has a value directly linked to gold.” The gold standard was popular as early as 1871 up until 1931 in Britain and 1933 in the US (especially in the early years of the 10-year Great Depression).

While no government is currently relying on the gold standard today and hasn’t since 1971, it is possible we may have a President that will place our country back on this monetary system.

In its day, countries using the gold standard converted their paper money into certain amounts of gold. A fixed price was set for buying and selling gold. Fiat money later replaced the gold standard as the accepted form of payment.

Investopedia defines the fiat system as “…government-issued currency that is not backed by a physical commodity, such as gold or silver.” This has been a reliable paper system for many years; however, this monetary system has its disadvantages.

Fiat money allows government-based central banks more control of the economy in the amount of currency that is printed. When too much money is printed, the result is hyperinflation. It is money truly regulated by the government.

When people lose faith in our nation’s monetary system, money fails to hold value. The difference with gold is that it retains intrinsic value for many applications, from jewelry to electronics and high-tech devices.

Gold’s Impact on Currencies

Gold has a continuing impact on the value of global currencies. In earlier periods in history, gold was used to back fiat currencies. Even today, it is often used as a hedge against inflation.

Gold prices also affect countries involve in gold import and export. Exporters of gold may experience an increase in currency values as gold prices increase. A trade surplus may result or on the other hand; the opposite scenario may result in a trade deficit.

Even the purchase of gold can devalue the currency used to make the purchase, largely because of supply and demand. As well, gold prices may mistakenly be used to measure the value of a currency.

With the impact gold has on world currencies, it is today a valuable substitute for paper currencies in hedging against inflation. Few other tangible worldwide assets have prevailed. Silver is a viable alternative, but today, the value of gold is higher and more popular among investors and central banks.

How the Gold Standard Would Benefit the Country

There is plenty of buzzes nationally and internationally about modifying our monetary system, and much of that discussion revolves around gold.

US politicians are discussing the benefits in bringing back the gold standard, according to Investing News. While there are certainly pros and cons, there is government support for this type of monetary system. The gold standard return in the US would cause prices to skyrocket to as much as $10k per ounce.

The return of the Gold Standard in America could show many positive benefits given the state of the country. With a climbing, national debt, tension for fair-trading, and increasing threats to our safety, the gold standard has the potential to ease some of these concerns. The gold standard could:

  • Shrink the trade deficit with other countries
  • Help maintain price stability (as shown in prior years when the gold standard was in place)
  • Build reserve assets in an attractive, tangible product
  • Build solidity for alternative gold-backed IRAs
  • Value currency directly with gold for self-regulating, stable economic results

If the US could hold gold in reserve to match outstanding debt, it would improve credit rapport between countries. The printing of paper money could be managed in terms of inflation. Government spending and debt could be minimized.

The Right Time for The Gold Standard

America, as the 2nd largest country for gold mining, is in the perfect position to bring back the gold standard. It was accomplished and successful for centuries in most advanced nations until President Roosevelt made gold coins and bars illegal to private owners.

Nixon disallowed foreign government gold for dollar exchange in 1971 primarily because of the rapid depletion of US gold reserves and the Emergency Banking Act of 1933.

Gold ownership is legal again! Private investors, as well as central banks, have the option of using gold to hedge against inflation and uncertainties! Not only that, history reveals that holding a percentage of gold as part of your financial portfolio is a responsible choice for lowering volatility.

In our current fiat system, the US dollar fluctuates without gold against worldwide country currencies. Imagine the possibilities if the gold standard was returned! This is the perfect market for diversifying. If the gold standard were to become a sustainable monetary system once again, now would be the exact time to invest in gold while supplies and prices are manageable.

Consider an investment in gold to prepare for the exact time when the President could renew the Gold Standard as an active monetary system. Whether or not it happens, it’s time to be prepared for the unexpected.

The opportunity to acquire precious metals in an individual retirement account (IRA) is in front of you. Don’t miss it. Contact Reagan Gold Group today and make your investment while gold prices are still reasonable. If you wait, it might be too late.

Learn how a Gold, Silver, & Precious Metals IRA can help you hedge against inflation

The Collapse of Fiat Currency Is Gold’s Moment to Shine.

A dramatic transformation is unfolding in the financial landscape, as gold reclaims its position as the ultimate safe haven. Amid growing economic uncertainty, the U.S. dollar has lost over 40% of its purchasing power compared to gold in just the past year — a staggering decline that signals deepening erosion of confidence in fiat currencies.

Yet, despite this dramatic devaluation, the story has not made the headlines it deserves. This speaks volumes about the growing disconnect between financial reality and public awareness, as gold sees a remarkable 23% increase since the start of 2025, proving its resilience in an increasingly unstable global economy.

In a recent PBS article, reporter Bernard Condon says that economists fear that the recent drop in the dollar is so dramatic that it reflects something more ominous — a loss of confidence in the U.S.

“The safe-haven properties of the dollar are being eroded,” said Deutsche Bank in a note to clients earlier this month, warning of a “confidence crisis.”

Investors Turn to Gold as Fiat Fears Mount

For global investors, the message is clear: the dollar is no longer the unchallenged cornerstone of financial stability. With persistent inflation, record-breaking debt levels, and growing geopolitical uncertainty, many are opting for the tangible security of gold.

“Since 2023, gold’s gone from $1,800 to $3,400 an ounce,” Forbes Media Chairman and editor-in-chief Steve Forbes told Fox Business. “That’s a sure sign we’re going to have a weak dollar ahead, which means, ultimately, turbulence and higher prices in the marketplace. Just look at the 1970s, and we can see where that leads unless something is done about it now. But I don’t see any sign that the authorities have any idea, constructively, of what to do, sadly.”

According to Bank of America’s most recent Global Fund Manager Survey, a net 61% of participants anticipate a decline in the dollar’s value over the next year — the most pessimistic outlook of major investors in almost two decades.

A CNBC article published on April 21 highlights an even more worrying trend. As the U.S. dollar weakens, other central banks may be forced to devalue their own currencies just to stay competitive. This “race to the bottom” in global fiat currencies could ignite even more inflationary pressure worldwide, making gold all the more appealing for investors who want out of this volatile spiral.

Global Currency Devaluation May Be Just Beginning

The exodus from U.S. assets also shines a light on the broader crisis of confidence, with potential spillovers such as higher imported inflation as the dollar weakens. The drop in the U.S. dollar has prompted other currencies to appreciate against it, especially safe havens such as the Swiss franc, Japanese yen, and the euro.

This is no mere market correction or cyclical fluctuation. As Bloomberg Intelligence’s Mike McGlone and many others have noted, we’re in the middle of just the fourth-ever capital rotation event — a strategic shift of investments across asset classes, sectors or regions in response to market conditions, economic cycles, and performance trends. “Gold is now the most expensive ever versus the U.S. long bond market,” he observed, pointing to deep structural issues in the American economy and financial system.

Meanwhile, central banks around the world are bolstering their gold reserves at record rates, a move that signals long-term distrust in the global fiat system.

“Global trust and reliance on the dollar was built up over a half century or more,” University of California, Berkeley, economist Barry Eichengreen told PBS. “But it can be lost in the blink of an eye.”

As the dollar falters, gold is reclaiming its historic role as the foundation of monetary confidence. For investors seeking real, enduring value, the message has never been clearer: the future is golden.
“Gold is clearly seen as the favored safe-haven asset in a world upended by the trade war,” Nitesh Shah, commodities strategist at WisdomTree, told Reuters. “The U.S. dollar has depreciated and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished.”

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Gold Breaks $3,300: Experts Say $4,000 Is Now in Sight

Gold soared past the $3,300 mark on April 16, once again shattering an all-time high as investors and retirees continue to seek safety amid growing global uncertainty. The precious metal climbed more than 6% in the last week and is up over 25% year to date, fueled by escalating U.S.–China trade tensions, a faltering dollar, aggressive central bank buying and recession fears.

“Gold is clearly seen as the favored safe-haven asset in a world upended by the trade war,” Nitesh Shah, commodities strategist at WisdomTree, told Reuters. “The U.S. dollar has depreciated and U.S. Treasuries are selling off hard, as faith in the U.S. as a reliable trading partner has diminished.”

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New Tariffs Crush the Stock Market: Why Gold Is the Safe Haven You Need NOW

The stock market was already beginning to crumble this year under the weight of inflation, economic uncertainty and the threat of global war. But since the latest tariffs went into effect on April 2, the stock market has been dealt yet another devastating blow — while gold continues to stand strong and see record stability.

On April 4, the S&P 500 fell 291 points (5.4%) by the afternoon, while the Dow Jones tumbled 2,150 points (5.3%) and the Nasdaq slid 5.8%. The free-fall carried over from the previous day, when the indexes recorded their biggest one-day drop since 2020, with $2.5 trillion in investor wealth being erased from the S&P 500. The Dow and S&P 500 each sank more than 4%, while the tech-heavy Nasdaq plunged nearly 6%.

Despite these incredibly uncertain times, gold is up nearly 3% over the last month, while the S&P 500 is down over 13%. This stark contrast highlights gold’s resilience as a safe-haven asset when traditional markets falter. As investors scramble for stability, the surge in gold prices continues to underscore its long-standing reputation as a reliable store of value in times of crisis.

The Impact of Trump’s Tariffs on the World

The latest tariff announcements include steep levies on key imports, particularly from China, the European Union and Mexico. In response to Trump imposing 34% tariffs on Chinese goods — which were already subject to a 20% levy — China hit back on April 4 with a 34% tariff on all U.S. products starting on April 10.

This comes after Canadian Prime Minister Mark Carney said that Canada will match Trump’s 25% auto tariffs with a tariff on vehicles imported from the United States.

“We take these measures reluctantly — and we take them in ways that is intended and will cause maximum impact in the United States and minimum impact in Canada,” Carney said.

One of the most concerning aspects of these tariffs is their inflationary impact. Higher import costs will translate to rising prices for goods, squeezing American households already burdened by inflationary pressures. Companies facing higher production costs may either pass expenses onto consumers or cut jobs to maintain profit margins — both scenarios spell trouble for economic stability.

Gold’s Surge Amid Market Chaos

Historically, gold has served as a hedge against economic uncertainty. In today’s uncertain and scary times, that has been rang more true. While equities crumble under the weight of trade tensions, gold has surged by more than 12% since the start of the year, while the S&P 500 has plummeted by over 15%.

Gold’s appeal lies in its independence from government policy and currency devaluation. Unlike fiat money, which can be manipulated through monetary policy, gold maintains intrinsic value, making it a trusted store of wealth in times of crisis. With fears of a prolonged trade war and potential stagflation on the horizon, investors are ditching the uncertainty of stocks and moving their hard-earned capital into tangible assets.

Why Investors Are Turning to Gold

With global instability accelerating, more investors are seeking protection — not speculation. High-risk assets like stocks are increasingly vulnerable to sudden shocks, policy changes, and economic downturns.

While stock traders brace for more volatility, Deutsche Bank, one of the world’s leading financial services providers, is looking beyond the panic — and betting big on gold. The bank just raised its average price forecasts for gold to $3,139 for 2025 and $3,700 for 2026, signaling strong long-term confidence in the precious metal.

“We conclude that the bull case for gold remains strong despite this week’s correction and further upgrade our year-end forecast to $3,350/oz.,” the bank said in a statement on April 7.

This shift reflects a growing recognition: gold isn’t just a hedge, it’s a foundation for financial security. In times like these, where headlines shift hourly and markets react in real time, gold remains a steady and trusted asset.

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