The death of Gold, the demise of the end of traditional monetary policy is celebrating its 55th anniversary this coming new year.
2026 marks the 55th anniversary of the decision to abandon the “GoldBack” ending with the Nixon administration in 1971. The monumental decision to end the convertibility of paper issued government notes to Gold would change monetary policy, fiscal allowance and global trade for the next fifty years.
The Gold standard began in 1944 with a post world war industrialized United States seeking the stability of an exchangeable medium of value not impacted or manipulated by governments. Previously, the Gold backed dollar was abandoned in World War 1 as governments required mass amounts of capital to fund their war efforts.
The result was disastrous currency devaluation globally and pullback on bilateral trade, ultimately leading to the Great Depression.
The decision to reinstall the GoldBack post World War 1 would be short lived through the Bretton Woods Agreement, lasting from its inception in 1944 to 1971 where President Nixon would deliver the final blow to Gold’s status as an anchor of monetary policy and set a new global standard for the next fifty five years. The removal of these monetary safeguards would lead to a series of observably correlated economic events under the Nixon administration today referred to as the “Nixon Shock”.
Despite winning the presidency on a campaign to withdraw United States troops from Vietnam, President Nixon found himself in deep economic turmoil after inheriting a wartime economy burdened by debt and high unemployment. In an attempt to spur growth in the U.S economy, Nixon declared no longer would America honour its Gold convertibility for its debt notes, allowing for a free floating currency exchange rate and the “Death of Gold”.
A free floating exchange rate would allow the United States to devalue its currency to finance debts outstanding from the war and provide fiscal allowance to those in control of debt issuance. Ultimately, the removal of the Gold backed dollar gave the United States a financial system completely independent from its Gold reserves to supply itself as much debt as it required to keep domestic operations afloat.
Since 1971, we have increasingly witnessed the traditional symptoms of an economic system with “Fiat syndrome”. High inflation, decreasing purchasing power and the loss of an industrialized economy.
We have witnessed the United States transform from the world’s largest creditor of debt post WW2, supplying credit to nations such as China and Brazil to formalize their economies to the largest debtor in recorded human history.
Today the U.S. economy struggles to manage the interest burden on their $38 trillion of debt accumulated since the death of the Gold standard. The United States currently pays upwards of three billion dollars daily to finance their debt operations. Income tax is the largest revenue source of federal debt funding with over 35% of income tax generated in Q2 of 2025 being allocated to financing the interest burden on U.S debt. This unsustainable path is one reason why Gold has skyrocketed in recent years to heights unimaginable, hitting the $4000USD mark in 2025. The United States has accumulated debt on its national credit card to a point of no return and this has not gone un-noticed.
The remerging discussion of Gold as currency in the Middle East and Far East is a clear sign that governments globally are abandoning the global monetary experiment of fiat currency. We are in the grand finale of the live action ‘play; titled “Death of Gold”. Central Banks have begun accumulating Gold at an unprecedented rate since 2023, with Russia and China leading the purchases of Gold due to economic uncertainty in the China / US trade war and the ongoing conflict in Ukraine. Both central banks have respectively purchased over 1000 tons of Gold in the past 12 months as Gold allows both nations to bypass the weaponization of the U.S. dollar, the tool of choice for the United States government.
The financial restrictions and sanctions set in place by the United States to cripple adversaries are essentially no longer effective and can easily be recognized as “self sabotage”. The Weaponization of the SWIFT financial system has been the main driver of nations “De-Dollarizing” and instead moving to a neutral “currency” in Gold that cannot be used as financial leverage against other major global powers.
𝐓𝐡𝐞 𝐞𝐱𝐩𝐞𝐜𝐭𝐚𝐭𝐢𝐨𝐧 𝐭𝐡𝐚𝐭 𝐝𝐞-𝐝𝐨𝐥𝐥𝐚𝐫𝐢𝐳𝐢𝐧𝐠 𝐜𝐨𝐮𝐧𝐭𝐫𝐢𝐞𝐬 𝐰𝐢𝐥𝐥 𝐤𝐞𝐞𝐩 𝐛𝐮𝐲𝐢𝐧𝐠 𝐠𝐨𝐥𝐝 𝐬𝐡𝐨𝐮𝐥𝐝 𝐩𝐮𝐬𝐡 𝐠𝐨𝐥𝐝 𝐩𝐫𝐢𝐜𝐞𝐬 𝐡𝐢𝐠𝐡𝐞𝐫.
Gold backed dollar allowed for global cooperation and trade between nations through an independently valued medium, with individual nations free to determine a fixed rate for their paper notes in exchange for physical Gold. A Gold backed currency ensured exchange rate stability, prevented currency devaluations for competitive means and promoted economic growth. Debt serves as a tool for nations in times of crisis however we have never seen a civilization derive its currency purely from debt and the borrowing of capital.
Eventually the music stops playing and there are only enough chairs for a few players.
If interested in purchasing Gold or Silver to protect yourself from inflation or economic uncertainty, please reach out to info@GlobalBullionSuppliers.com, 1 800-427-4045 or visit us in store at 128 Cumberland Street. Hope to see you soon.