by Avery B. Goodman
Avery B Goodman
There are many people who allege that, because gold does not pay interest or dividends, it cannot be accurately valued, like a stock or bond. That is not true. It is actually easier to calculate the fair market dollar value of gold than to value any other asset. We simply need to step back in time in order to find our answer, and then employ some math.
The Bretton Woods Agreement was signed in July 1944, when the world was on a quasi-gold standard. The United States of America had accumulated a vast majority of the government-owned yellow metal during World War II. Because no other nation had much gold, it was decided that America’s gold reserve would be indirectly used by all nations.