Gold: At the Point of Panic

Most of the reasons for the gold crisis are rooted in the U.S. The country's continuing balance of payments deficit, its constantly out-of-balance domestic budget and its rising outflow of money to finance the war in Viet Nam are basically responsible for global concern about the soundness of the dollar. Concern has led to the belief that the U.S. would soon have to stop selling gold to all buyers at $35 an ounce and somehow raise the price. The possibility of a price increase touched off the worldwide run on gold.

That being the case, the U.S. had the responsibility...

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