Today’s AM fix was USD 1,572.50, EUR 1,205.26 and GBP 1,026.50 per ounce. Yesterday’s AM fix was USD 1,577.25, EUR 1,212.80 and GBP 1,029.60 per ounce.
Gold fell $6.50 or 0.41% yesterday to $1,572.50/oz and silver slid to $27.12 and finished down 0.22%.
Alix Steele reports on the 1933 declaration by U.S. President Franklin Delano Roosevelt to have American’s turn in their gold on Bloomberg TV’s “Lunch Money.”
“80 years ago on April 5th, 1933, was the day that the federal government took all our gold and changed the precious metals as we know it,” said Alix Steel.
April 5th, 1933, FDR confiscated every gold coin, bar, or certificate and people had to turn in their gold to the Federal Government or else they would face a fine of $10,000 or 10 years in jail. That is about $179,000 in today’s money. You were able to keep a small amount of some rare coins and those that did give up their gold received about $20/oz.
“Why would the government do that?” asks Ms. Steel. They did this for the following reasons:
1. To prevent hoarding.
2. To devalue the dollar during the Great Depression.
3. The government set the gold price at $35/oz and pegged it to the dollar.
“But this could never happen again, right?” asks Ms. Steel. “Well tell that to Texas.”