A Historical Anchor in a World of Fiat Uncertainty

At Bailey Financial Services, we believe it’s critical to understand where we’ve come from to prepare wisely for what’s ahead. Few topics are more relevant right now than the role gold has played throughout history—and why its importance is re-emerging in a world saturated with fiat currency, unsustainable debt, and central bank distortion.

Gold’s Timeless Role as Money
For thousands of years, gold wasn’t just valuable—it was money. From the Egyptians to the Romans, and into the modern era, gold earned trust because it was scarce, durable, divisible, and universally accepted. Unlike today’s paper currency, gold couldn’t be printed at will. Its natural scarcity created a discipline that anchored economic activity and preserved wealth across generations.

The Golden Age of Stability
Under the classical gold standard (1870s–1914), major economies tied their currencies to gold. Inflation was low. Fiscal discipline was the norm. And currencies held their purchasing power over time. A gold-backed dollar meant confidence—at home and abroad. Even after World War II, the Bretton Woods system maintained this tie by allowing dollars to be redeemed for gold at a fixed rate of $35 per ounce.

The Nixon Shock: Gold Is Cut Loose
That all changed in 1971 when President Nixon suspended the convertibility of the dollar into gold. What began as a “temporary” move became permanent. Since then, the U.S. dollar has been backed by nothing more than faith in government. The result? Inflation surged. The dollar’s purchasing power dropped dramatically. And national debt exploded.

Unleashing the Age of Inflation
Since abandoning gold, America’s monetary base has grown without limit. The Fed, no longer restrained, has created trillions in new dollars—fueling asset bubbles and devaluing savings. For the average American, this has meant rising prices at the pump, the grocery store, and even the housing market. Meanwhile, gold has quietly held its own, acting as a hedge against the erosion of purchasing power.

Why Gold Still Matters Today
In a world of mounting deficits, reckless spending, and geopolitical instability, gold remains one of the few financial assets with no counterparty risk. It can’t be defaulted on. It doesn’t rely on political promises. It simply is. At Bailey Financial Services, we view gold as a tool—not for speculation, but for preservation. In times like these, it's not a luxury to own gold—it’s a safeguard.