Uncertain status of monetary gold

Nature

In recent years controversy has arisen about the price and status of gold. Proposals have ranged from dissociating its monetary value from currency values to an increase in the gold price. The uncertain future status of gold, fed by the debate on different proposals, reduces general confidence in the international monetary system and incites speculation which causes serious damage to it.

Claim

Since the USA abrogated the convertibility of the central bank's dollar claims into gold, the official gold exchange rate is a fiction.

Counter-claim

Although gold no longer holds the dominant position in international payments that it once had, its traditional role as the generally accepted unit of account and ultimate means of international settlement has, to a very considerable extent, been preserved.