A History Of Gold In The Modern Era

Posted on by Brian Colwell

Gold has served as humanity’s most enduring store of value throughout recorded history, but its role in the modern era—from 1800 to the present day—represents a particularly dramatic narrative of economic transformation, political upheaval, and technological advancement.

The story of gold since the Industrial Revolution encompasses the great gold rushes that shaped nations, the rise and fall of the gold standard that governed international commerce for over a century, and the metal’s evolution from the foundation of global monetary systems to a strategic reserve asset and investment vehicle.

This chronicle reveals how gold has both influenced and reflected the major economic events of the past two centuries, from the California Gold Rush to the Nixon Shock, from the establishment of Fort Knox to the creation of modern gold markets. Understanding gold’s modern history provides crucial insights into the development of today’s financial systems and the enduring appeal of this precious metal in an increasingly digital age.

A History Of Gold In The Modern Era (1800 – Present Day)

The modern history of gold represents a profound shift from its ancient role as a symbol of wealth and power to its central position in international monetary systems, and ultimately to its current status as a strategic reserve asset and investment commodity. This transformation, spanning over two centuries, encompasses the establishment and abandonment of the gold standard, massive gold rushes that reshaped continents, two world wars that reorganized global gold holdings, and the emergence of sophisticated modern gold markets that trade billions of dollars worth of the metal daily.

Chronology

  • 1799 – The first major gold rush in America begins when a 17-pound gold nugget is discovered in Cabarrus County, North Carolina [1, 11]
  • 1804-1828 – North Carolina supplies all the domestic gold coined by the United States [23]
  • 1816 – Great Britain officially adopts the gold standard, tying the pound to a specific quantity of gold at which British currency is convertible [10, 23]
  • 1819 – The Bank Charter Act institutionalizes the gold standard in Britain by establishing a ratio between gold reserves held by the Bank of England and the banknotes it could issue [22]
  • 1823 – First official reports of gold findings in Australia by J. McBrien, though the information was suppressed [18]
  • 1834 – The United States Coinage Act increases the gold-silver ratio to 16.0, effectively placing the country on a gold standard as gold becomes cheaper relative to silver [22]
  • 1837 – The weight of gold in the U.S. dollar is lessened to 23.22 grains, setting one fine troy ounce of gold at $20.67 [23]
  • 1844 – The Bank Charter Act of 1844 fully institutionalizes the gold standard in Britain [22]
  • 1848 – James Marshall discovers gold nuggets at Sutter’s Mill near Sacramento, California, on January 24, triggering the California Gold Rush that transforms San Francisco from a town of 1,000 to 25,000 people within two years [1, 11, 23]
  • 1849 – Edward Hargraves sails from Sydney to join the California Gold Rush [14, 19]
  • 1851 – Edward Hargraves discovers gold at Ophir in New South Wales on February 12, receiving a £10,000 reward and triggering the Australian gold rushes [14, 19]
  • 1851 – Gold is discovered at Ballarat and Bendigo Creek in Victoria, Australia, within six months of the New South Wales discovery [14, 19]
  • 1852 – Gold deposits are discovered in Tasmania [19]
  • 1853 – The license fee in New South Wales is reduced to 10 shillings per month after near riots at Turon [18]
  • 1854 – The Eureka Stockade rebellion occurs at Ballarat as miners protest against licensing fees and lack of political rights [14, 18]
  • 1857 – Gold is discovered in Queensland, Australia [19]
  • 1858 – Gold discovered in British Columbia, attracting 25,000 prospectors [18]
  • 1861-1876 – The Nova Scotia gold rush produces nearly 210,000 ounces of gold [13]
  • 1862 – The United States declares paper money as legal tender for the first time during the Civil War, marking the first use of fiat currency [1]
  • 1867 – Canada introduces its own gold dollar at par with the U.S. dollar [22]
  • 1870-1900 – Most of the world, except China, adopts the gold standard [10]
  • 1871 – The international classical gold standard commences after the German Empire transitions from silver to the gold mark [22, 28]
  • 1871 – Gold is discovered in the Northern Territory of Australia [19]
  • 1873 – The United States Coinage Act (called the “Crime of ’73” by critics) eliminates silver as a standard of value, placing the U.S. on an unofficial gold standard [1, 23, 30, 31]
  • 1875 – The U.S. Specie Resumption Act sets 1879 as the date for resuming gold convertibility [27]
  • 1879 – The Alaskan territory organizes its first mining district [12]
  • 1886 – Gold is discovered on the Witwatersrand in South Africa, leading to the founding of Johannesburg and massive gold production [2]
  • 1890s – Gold rushes begin at Kalgoorlie and Coolgardie in Western Australia [14, 19]
  • 1893 – Western Australian gold rushes begin at Kalgoorlie [13]
  • 1896 – Gold is discovered in the Klondike region of Yukon on August 16 by local miners [13, 20]
  • 1897 – News of the Klondike discovery reaches Seattle and San Francisco, triggering a rush of 100,000 prospectors [17, 20]
  • 1898 – Major gold strikes occur at Nome, Alaska [13, 17]
  • 1900 – The United States Gold Standard Act officially places the country on the gold standard, setting gold at $20.67 per ounce [23, 27, 29]
  • 1902 – Major gold discoveries are made near Fairbanks, Alaska [17]
  • 1909-1911 – The Porcupine Gold Rush occurs in Timmins, Ontario, ultimately producing 67 million ounces by 2001 [13]
  • 1913 – The Federal Reserve Act requires 40% gold backing for Federal Reserve Notes [32, 44]
  • 1914 – World War I begins; many countries suspend gold convertibility to finance the war effort [27, 28]
  • 1914 – Currency and Bank Notes Act passed in the UK [27]
  • 1919 – The United States temporarily suspends the gold standard following World War I [23]
  • 1920 – Gold and Silver Export Control Act passed in the UK [27]
  • 1925 – Britain returns to the gold standard under Chancellor Winston Churchill at the pre-war parity [27]
  • 1931 – Britain abandons the gold standard as the Great Depression deepens [34]
  • 1932 – Fort Knox becomes a permanent Army installation [78]
  • 1933 (April 5) – President Franklin D. Roosevelt issues Executive Order 6102, requiring U.S. citizens to turn in gold coins, bullion, and certificates to the Federal Reserve at $20.67 per ounce [32, 33, 35, 39]
  • 1934 (January 30) – The Gold Reserve Act is passed, requiring all gold held by the Federal Reserve to be surrendered to the U.S. Treasury [36, 39]
  • 1934 – President Roosevelt raises the official gold price to $35 per ounce, effectively devaluing the dollar by 69% [23, 36]
  • 1936 – Construction of the United States Bullion Depository at Fort Knox is completed in December at a cost of $560,000 [72, 73, 80]
  • 1937 (January) – The first gold shipments arrive at Fort Knox from the Philadelphia Mint and New York Assay Office, totaling 157,820,192 troy ounces [72, 73, 79]
  • 1943 – President Franklin D. Roosevelt becomes the only person other than authorized personnel to access Fort Knox vaults [73]
  • 1944 (July) – The Bretton Woods Agreement establishes a new international monetary system with currencies pegged to the U.S. dollar, which is convertible to gold at $35 per ounce [7, 44, 67]
  • 1944 – The International Monetary Fund is established, with members required to pay 25% of their subscription in gold [67]
  • 1954 – The U.S. Treasury amends Gold Regulations to expand the definition of collectible coins exempt from confiscation [39]
  • 1958 – European currencies become convertible, making the Bretton Woods system fully operational [44]
  • 1960 – Gold price rises to $40 per ounce due to speculation, prompting central bank concern [67]
  • 1961 (November) – The London Gold Pool is established by eight nations to maintain gold at $35 per ounce, with the U.S. contributing 50% of the 240-tonne pool [82, 83, 85]
  • 1965 – France, under President Charles de Gaulle, begins aggressively converting dollars to gold, straining the Gold Pool [82, 87]
  • 1967 (June) – France announces withdrawal from the London Gold Pool [82]
  • 1967 (November 18) – Britain devalues the pound by 14.3%, accelerating the gold crisis [82, 83]
  • 1968 (March 14-15) – The London gold market closes on an emergency bank holiday as the Gold Pool collapses [82, 83, 85]
  • 1968 (March 18) – The U.S. Congress repeals the requirement for gold backing of the dollar [82, 83]
  • 1971 (August 15) – President Richard Nixon announces the suspension of dollar convertibility to gold in the “Nixon Shock” [42, 43, 44, 45]
  • 1973 – The Bretton Woods system officially ends as currencies begin floating freely [43]
  • 1974 (September 23) – Fort Knox breaks its no-visitors policy to allow journalists and a Congressional delegation to view gold reserves [76]
  • 1974 (December 31) – President Gerald Ford signs Executive Order 11825, allowing Americans to own gold again [39, 45]
  • 1975 – Gold ownership becomes legal for U.S. citizens for the first time since 1933 [39]
  • 1976-1979 – The IMF sells approximately 50 million ounces of gold, spreading gold ownership more widely [67]
  • 1979 – Gold price surges amid inflation fears and geopolitical tensions [55]
  • 1980 (January 21) – Gold reaches a historic high of $850 per ounce during the Soviet invasion of Afghanistan [55, 58, 61]
  • 1999 – Gold falls to a 20-year low of approximately $252 per ounce [55]
  • 1999 (September 26) – The first Central Bank Gold Agreement (Washington Agreement) is signed by 15 European central banks, limiting gold sales to 400 tonnes annually [62, 63, 64]
  • 2002 – A surviving 1933 Double Eagle gold coin sells for over $7.5 million [32]
  • 2004 (March 8) – The second Central Bank Gold Agreement is signed, raising the annual sales limit to 500 tonnes [62, 64, 66]
  • 2008 – The financial crisis triggers renewed interest in gold as a safe haven, with prices rising from $730 to $1,300 by 2010 [55]
  • 2009 (August 7) – The third Central Bank Gold Agreement reduces the annual sales limit to 400 tonnes [62, 66, 71]
  • 2011 (August) – Gold reaches a new nominal high of approximately $1,900 per ounce amid the European debt crisis [52, 55, 58, 61]
  • 2014 (May 19) – The fourth Central Bank Gold Agreement is signed [66]
  • 2017 – Treasury Secretary Steve Mnuchin and Congressional representatives become the second group to visit Fort Knox vaults [81]
  • 2019 (July 26) – European central banks announce they will not renew the Central Bank Gold Agreement, citing changed market conditions [69, 70]
  • 2020 (August) – Gold reaches a new all-time high above $2,000 per ounce during the COVID-19 pandemic [61]
  • 2024 – Gold reaches new record highs above $2,700 per ounce amid global economic uncertainty [56]

Final Thoughts

The history of gold in the modern era demonstrates the metal’s remarkable ability to adapt to changing economic circumstances while maintaining its fundamental appeal as a store of value. From serving as the foundation of the international monetary system during the gold standard era to becoming a strategic reserve asset and investment vehicle in the modern age, gold has proven its resilience through wars, financial crises, and fundamental shifts in how the global economy operates.

The journey from Executive Order 6102 to today’s sophisticated gold markets represents not just the evolution of a commodity, but the transformation of the entire international financial system. As central banks continue to hold substantial gold reserves and investors turn to gold during times of uncertainty, the metal’s 200-year modern history suggests that despite the digitalization of finance and the prevalence of fiat currencies, gold’s role as a monetary anchor and safe haven asset remains deeply embedded in the global financial psyche.

Thanks for reading!

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