Quick answer: Gold backed major currencies for centuries, most recently under the US gold standard and the Bretton Woods system, until the US formally ended dollar-to-gold convertibility in 1971.

This article is grounded in the topic actually covered by the referenced video (“Why Gold has been a currency”, Fox Ira Investment) and independent research — not personalized tax, legal, or investment advice.

The gold standard era

For much of the 19th and early 20th centuries, many currencies including the US dollar were directly convertible to a fixed amount of gold — a real historical monetary role, not a marketing claim.

1971 and the end of convertibility

President Nixon ended the dollar’s convertibility to gold in 1971, moving the US (and most of the world) to the fiat currency system used today, where currency value isn’t tied to a physical commodity.

What this history does and doesn’t prove today

Gold’s historical monetary role explains why it’s still seen as a store of value, but it doesn’t mean gold will behave the same way in a modern fiat-currency economy — a separate, ongoing debate covered elsewhere on this site.

Frequently Asked Questions

Does any country still use a gold standard today?

No major economy currently operates on a formal gold standard; some central banks hold gold reserves, but currencies aren’t directly convertible to it.

Why do central banks still hold gold?

Central banks commonly hold gold reserves as part of diversified foreign-reserve holdings, a practice that continues independent of the gold standard’s end.

Is this history relevant to a personal Gold IRA decision?

It’s useful context for understanding gold’s role, but your own allocation decision should rest on your specific goals and costs, not historical monetary policy alone.