Word: goldings
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Dates: during 1970-1979
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...chairman of the Federal Reserve Board. Volcker, in Carter's words, "has broad economic and financial experience and enjoys an outstanding international reputation." The appointment was expected to calm the anxieties of many foreign financial figures about the future of the dollar (last week, however, the price of gold reached another record high: $307 an ounce...
Countless thousands of foreign investors expressed their lack of confidence in Carter in more concrete form by dumping dollars and buying gold. In short, they were voting with their money. "We were waiting for an energy program, and the exchange rate reflects the absence of one," commented Leonida Guadenzi, vice president of the Milan Exchange, where the dollar fell sharply against the Italian lira. Added one Milan trader: "When Carter speaks, the dollar plummets...
Only eight months ago, gold sold at $200 per oz. Last week the price of the mystical metal, which historically rises on uncertainty and lack of faith in paper money, shot up $12.45 in three days and broke the $300-per-oz. barrier. It reached a record $303.85 before settling back slightly at week's end to just below $299. But the decline could well be temporary. Says Hans-Joachim Schreiber, the chief trader of West Germany's Dresdner Bank, which has been the biggest buyer at recent U.S. Treasury gold auctions: "There are no forces working...
...While gold is psychologically important, the fate of the dollar is far more vital to the U.S.−and the rest of the non-Communist countries, which use the greenback to settle most international trade deals. Even before Carter's actions last week, the dollar had been slipping, as some financially important countries, including Saudi Arabia, sold American currency from their monetary reserves in exchange for West German marks and British pounds...
...imports and making it more expensive for U.S. companies to operate abroad and thus directly challenge their European and Asian competitors. Unless Carter rallies and the U.S. demonstrates real signs of strength, the dollar will continue to tremble, and investors abroad will live by their old watchword: "In gold we trust...