posted on Nov, 29 2003 @ 02:11 PM
Actually, we are no longer on the gold standard any more...
In 1944, the world agreed a new system of foreign exchange based on fixed rates against the US dollar which, again, was backed by gold.
Under the Bretton Woods agreement the value of gold was set this time set at $35 dollars per ounce.
By 1958, as currency controls were lifted, most countries followed the new system.
This was to be the case for the next dozen or so years until in 1971 the US, faced by dwindling reserves and a growing balance of payments deficit,
came off the gold standard.
This was the final nail in the coffin for gold and never again was the gold standard to be revived.
The international money system is now based on the dollar and other paper currencies."