What was the value of gold in 1875?

Nobel Prize-winning theologian, musician, philosopher and physician Albert Schweitzer was born on January 14, 1875 in Upper Alsace, Germany (now Haut-Rhin, France). The son and grandson of ministers, Schweitzer studied theology and philosophy at the universities of Strasbourg,. read more. To determine the true value of gold in US dollars, simply take the total world money supply of the United States and divide it by the number of ounces of gold available for purchase.

After the war, the gold standard returned, but economic growth in the 1920s surpassed gold reserves, and some countries supplemented their reserves with stable currencies such as the pound and the dollar, which, like gold, had acquired in people's minds a permanent measure of abstract value. In the United States and many other countries, currencies remained “linked to gold” until the 1970s, when the decline in global reserves marked the gold standard's last death sentence. Roosevelt banned the circulation of gold coins, although gold was still used to define the value of the dollar. The price of an ounce of gold remained completely stable and in line with the gold standard at all times.

In 1968, a two-tier price structure was established, and in 1975, the price of gold was allowed to fluctuate. Gold for dollars held by foreigners, then, in 1974, it lifted its four-decade ban on the private purchase of gold. It is measured in troy ounces and the price of gold is generally indicated in terms of the cost of a troy ounce.