The popularity of buying gold has grown considerably over the years, and many people who are considering investing in gold are likely familiar with Franklin D. Roosevelt’s 1933 executive order that prohibited civilians from owning gold. FDR’s executive order had a significant impact on the gold market, and it is important for those who are looking to buy gold to remember it when making an investment.
Prior to FDR’s executive order, gold had been a popular investment in the United States for over a century. It had long been seen as a safe haven when stock markets were volatile and the American dollar wasn’t as strong. However, when the Great Depression hit in 1929 and the American economy took a serious hit, FDR felt that it was necessary to take steps to prevent the value of the American dollar from falling too quickly. His solution was to order civilians to turn in any gold they owned to the government in exchange for paper currency at a rate of $20.67 per ounce.
This order had a significant impact on the gold market by drastically reducing the amount of gold available. This in turn caused the value of gold to skyrocket, as it became much more scarce. In effect, FDR had ‘artificially’ made gold much more valuable.
Fast forward to today and the gold market is much different than it was during FDR’s time. The value of gold has since stabilized, and the executive order is no longer in effect. Nonetheless, the order highlights the importance of making an informed decision when considering investing in gold.
For starters, the executive order highlights the importance of researching gold and understanding the forces that drive its value. It’s important to understand the history of gold and the various factors—from political to economic—that have impacted its value in the past and may impact it in the future.
Furthermore, the executive order serves as an important reminder of the importance of diversifying one’s portfolio. While gold can be a very lucrative investment, it’s important to make sure your portfolio is diversified across a number of asset classes so as not to put all your eggs in one basket.
In conclusion, those who are looking to buy gold should be sure to remember Franklin D. Roosevelt’s 1933 executive order when doing so. It’s important to research gold and understand its value, as well as the various economic and political forces that impact it. Additionally, it’s important to diversify one’s portfolio to ensure that one is not putting too much money into one asset class like gold.