Celebrating 50 Years of Legalized Gold with Gold Eagle
Americans have a reason to celebrate this New Year’s Eve by marking the 50th anniversary of a significant milestone in the gold market. Back in 1974, President Gerald R. Ford made waves by legalizing private gold ownership. This move allowed individuals in the United States to once again own gold as an investment to protect their wealth and shield themselves from monetary inflation and currency devaluation.
For many years prior to this decision, Americans were prohibited from owning more than $100 worth of gold, but President Ford’s executive order on December 31, 1974 changed that. The order revoked a decree from President Franklin D. Roosevelt dating back to 1933 that criminalized gold hoarding. The legalization of gold ownership didn’t come with much fanfare – no confetti or champagne – as President Ford simply signed the order without any celebratory remarks.
Following the repeal of the decades-old gold ban, the gold industry in the US saw a resurgence. Gold could once again be bought, sold, and owned without the risk of fines or imprisonment. This decision also paved the way for the trading of gold futures, opening up new investment opportunities for individuals interested in diversifying their portfolios.
President Ford, known for his amiable demeanor, wasn’t a die-hard supporter of the gold standard, but rather signed the bipartisan bill into law after it was passed by Congress. The bill, Public Law 93-373, allowed citizens to transact gold in the US and abroad. This legislation was the result of a grassroots movement led by James U. Blanchard III, founder of the National Committee to Legalize Gold, and enjoyed support from both Democrats and Republicans.
However, not everyone was on board with the decision to legalize gold. The Treasury Department and the Federal Reserve expressed concerns about potential repercussions, especially as the price of gold surged to record levels. Treasury’s worries about a possible increase in the trade deficit and further devaluation of the US dollar led to the decision to sell 2 million ounces of gold bars to stabilize the market.
In the wake of the gold legalization, Federal Reserve Chairman Arthur Burns raised concerns about potential market disruptions and extreme price movements. He feared a scenario where investors would shift their funds from other assets to gold, impacting the broader financial markets. Burns negotiated a deal with the German central bank in an effort to limit official gold purchases and maintain a sense of stability in the gold market.
As we look back at this pivotal moment in financial history on its 50th anniversary, it serves as a reminder of the importance of accessible and inclusive markets. The decision to legalize gold ownership not only empowered individuals to safeguard their wealth but also sparked new opportunities in the financial sector that continue to shape our economy today.
