If you are considering buying gold or selling gold in the near future, there are many different things that you are going to want to educate yourself on when it comes to the pricing and selling of gold. This is because the price of gold is constantly changing and can become somewhat of a task to try and keep track of for the average person. The gold standard is a monetary system when fixed quantities of gold of a pre set amount can be given or converted from paper notes that is acting as a country’s form of currency. However there are not any countries’ still using this system as the majority of countries has switched to flat currency. Since 1976 the government no longer played a role in the pricing of gold value. This is the reason that now the price of gold is mainly affected by the demand for the metal.
The gold standard was used in the early 1900’s, however most countries have since long abandoned the system. For example Britain abandoned the system in 1931 and the US did the same in 1971. It was on August 15, 1971 when most of the world officially entered into the era of which no paper money circulating in any country would be redeemable in gold. Since then there have been many different things that have been used to set the price of gold and many different systems that have been used as standard or benchmark for the pricing of gold in world markets. However if you are interested in learning more about why the pricing of gold is what it is today, the best thing that you can do is learn more about the Gold Standard and how that slowly evolved into the pricing of gold that we have today.