What is meant by gold reserve currencies?

Question

What is meant by gold reserve currencies?

Answer 1

At one time (probably before you or I were born) countries minted gold coins, and issued currency that said on it that it could be exchanged for an equivalent amount of gold. This meant that the government could not print more money than they had gold in reserve to cover it. Then came silver coins and silver certificates, which could be exchanged for an equivalent amount of silver.  Look at the currency in your wallet. It probably says "Federal Reserve Note", and the only way to exchange it for gold is at the going rate, which this morning is  $880.40US / troy ounce.

If you do not believe in inflation, a $50 gold piece weighs one troy ounce, and is thus worth at least $880.40US, for the gold in it, if not more as a collector's item.  When it was minted, the gold in it was worth not more than $50.  This implies that a dollar was worth a lot more back then.

That gold allegedly in Fort Knox (if it's still there) does not belong to the US Government.  It belongs to the Federal Reserve, a private corporation.  They are not going to let you or I have any of it, it is there to make people think we have a gold reserve currency.  Do not be fooled, remember the $50 gold piece is worth $880.40US.

Grandpa

Answer 2

paper currency backed up by gold deposits. America's is kept at Ft. Knox,Ken.

Answer 3

is the money government keep on reserve.

that is keeping on gold

Forth knox is the place (i guess)