2017-02-02 Thu

Gold supported U.S. and world currencies from the 1800s to 1900s when the currency value was related to this precious metal. Gold was exchanged between countries that used different forms of currency. Foreign diplomats started using gold for promoting trade activities. Great Britain introduced this idea in 1821 where paper money was issued by governments based on the gold reserve that they had.

President Trump thinks that bringing back this Gold standard would be amazing. Experts, on the other hand, don’t think that it would be a good fiscal move for the United States. In 1933 Gold standard was discontinued which helped America get out of the Great Depression.

The irregular value of Gold can badly affect the U.S. dollar. From 2011 to early 2016 gold price fell by 45%. Besides that, gold remains in bull or bear markets for more than ten years. So if gold's per ounce price was low then it would be difficult to fight an economic depression. It could also lead to a trade war with other nations. The proposed tax reforms by Trump can fluctuate pricing of tangible assets.

When U.S. legalised private ownership of gold in 1975, Trump invested a lot in this precious metal. He bought it for about $185 an ounce at that time and sold it between $780 an ounce and $790 an ounce.