Gold Reserve Act Of 1934

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DEFINITION of 'Gold Reserve Act Of 1934'

An act that took away title to all gold and gold certificates that were held by the Federal Reserve Bank. The Gold Reserve Act of 1934 made the trade and possession of gold a criminal offense for the citizens of the U.S. Sole title of this gold was given to the U.S. Treasury. It was not until 1975 that Americans could again own or trade gold.

BREAKING DOWN 'Gold Reserve Act Of 1934'

The act also fixed the weight of the dollar at 15.715 grains of nine-tenths fine gold. By fixing the dollar at that amount, the dollar was devalued from $20.67 per troy ounce to $35 per troy ounce. By doing this, the Treasury saw the value of their gold holdings increase by $2.81 billion overnight.

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RELATED FAQS
  1. Has gold been a good investment over the long term?

    When evaluating the performance of gold as an investment over the long term, it really depends on how long a term one is ... Read Full Answer >>
  2. What was the Gold Reserve Act?

    The Gold Reserve Act of 1934 gave the government the power to peg the value of the dollar to gold and adjust it as it pleased. ... Read Full Answer >>
  3. How can I invest in gold?

    Investing directly in commodities, such as gold or oil, tends to be more difficult for investors than investing in stocks ... Read Full Answer >>
  4. How is the Federal Reserve audited?

    Contrary to conventional wisdom, the Federal Reserve is extensively audited. Politicians on the left and right of a populist ... Read Full Answer >>
  5. Who decides when to print money in the US?

    The U.S. Treasury decides to print money in the United States as it owns and operates printing presses. However, the Federal ... Read Full Answer >>
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    The U.S. Constitution does not mention the need for a central bank, nor does it explicitly grant the government the power ... Read Full Answer >>

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