The Gold Standard
The following is a transcript of "
Hello and welcome to Money Girl's Quick and Dirty Tips for a Richer Life.
Today's topic: The gold standard.
A Brief History of the Gold StandardTo get to an answer to this question, let's take a quick look at the history of the gold standard. In 1900, the United States and most of Europe adopted a monetary system based on gold. The Gold Standard Act of 1900 made paper dollars convertible to 1.5 grams of gold. A troy ounce of gold (which is one-twelfth of a pound) was a little over $20.(1) In practice, most people used paper dollars because of their convenience, and didn't often redeem them for gold. If you take a close look at a U.S. dollar bill today, you'll see the words "Federal Reserve Note" printed on it. You'll also see the words "This note is legal tender for all debts public and private."
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV