What was the price of silver and gold in 1934?

CoinHusker · March 25, 2009 3:00AM

I'm having trouble finding info back that far. Any help would be appreciated. Thanks!

Weiss · March 25, 2009 3:11AM

I suppose it would depend on some part what you considered "gold" and "silver".

In 1934, the mint was cranking out silver dollars still. So a dollar = .77344 oz of silver. Likewise, prior to Executive Order 6102 (April 5, 1933), $20 gold pieces were still circulating. A $20 gold piece weighs almost exactly an ounce (.96750).

However...

The Gold Reserve Act of 1934 abrogated the gold clause in government and private contracts and changed the value of the dollar in gold from $20.67 to $35 per ounce. This price remained until August 15, 1971 when President Richard Nixon announced that the United States would no longer convert dollars to gold at a fixed value, thus abandoning the gold standard for foreign exchange.

CoinHusker · March 25, 2009 3:14AM

I'm doing a booklet for our club's 75th Anniversary and thought lisitng the spot prices of gold and silver back when the club was founded would be fun to add in so I was thinking along the lines of an average spot price for both silver and gold back in 1934.

Thanks

coynclecter · March 25, 2009 4:18AM

There was no "spot"

The price was fixed where 20 "dollars' could be redeemed for one ounce of gold and silver worked out to about 1.62 an ounce. That was 1933. Then the government confiscated the gold and started issuing dollars at 35 dollars per ounce which was intended to increase the money supply by 75%. I dont think they changed the silver price.

Things stayed this way until 1971, at least in the US as we were not allowed to own gold til then. At that time the float took off and "spot" was a fluctuating price.

storm888 · March 25, 2009 4:26AM

Historical Prices

CoinHusker · March 25, 2009 4:55AM

<< <i>There was no "spot"

The price was fixed where 20 "dollars' could be redeemed for one ounce of gold and silver worked out to about 1.62 an ounce. That was 1933. Then the government confiscated the gold and started issuing dollars at 35 dollars per ounce which was intended to increase the money supply by 75%. I dont think they changed the silver price.

Things stayed this way until 1971, at least in the US as we were not allowed to own gold til then. At that time the float took off and "spot" was a fluctuating price. >>

very interesting. thanks for the information.

CoinHusker · March 25, 2009 4:57AM

<< <i>Historical Prices >>

thanks! That's what I was looking for!

PerryHall · March 25, 2009 5:11AM

<< <i>The price was fixed where 20 "dollars' could be redeemed for one ounce of gold >>

Actually, a $20 double eagle had 0.9675 Troy ounces of gold; hence, the official price of $20.67 for a Troy ounce of gold.

RWB · March 26, 2009 8:21AM

After the US went off the international gold standard the dollar price increased to approximately $29. Later in 1933 the Treasury deliberately increased the price in would pay until it was fixed at $35 per ounce on January 31, 1934.

In 1934 silver was nationalized under the Silver Purchase Act of June 19, 1934 and the price fixed at $0.6465 per ounce. At this point the open market price was about $0.41 per ounce.

In both instances, mining profited handsomely and domestic production quickly increased.

What was the price of silver and gold in 1934?

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