Gold standard

Geschichteab 13 J.

A monetary system in which the value of money was tied to gold. Every banknote could be exchanged for a fixed amount of gold. It ended in 1971.

The gold standard was a monetary system in which every banknote was backed by a fixed amount of gold. In theory you could go to the central bank and exchange your money for gold.

History:

• 1870s: most industrialised countries introduce the gold standard
• 1914: First World War – the gold standard is abandoned to finance the war
• 1944: Bretton Woods system: the dollar pegged to gold, other currencies pegged to the dollar
• 1971: US President Nixon ends the dollar's gold peg (the "Nixon shock")

Since then: all modern currencies are "fiat money" – their value is based on trust in the state, not on gold. This allows flexible monetary policy but carries the risk of excessive debt.

Did you know? Germany's Bundesbank still owns more than 3,350 tonnes of gold – the second-largest gold reserve in the world (after the USA). Value: more than €200 billion.

Something missing or could the translation be better?

← Goldpreis Gratifikationsaufschub →

📚 Gold standard understood?

Deepen your financial knowledge with 60 free learning modules and 16 calculators.

📚 To the learning paths →

🧮 Calculators 📖 Glossary

📅 Stand: 17. Juli 2026✔️ Redaktionell geprüftÜber SaveFoxy FAQ Fehler melden? Im Lexikon mitmachen