Is u.s money worth gold?

My uncle told me u.s. dollars are worth the gold in fort Knox. For example if I have one dollar that is one dollar worth on gold and that is what gives money value, is that true?

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  • 7 years ago
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    Up until 1934, it was possible to redeem US banknotes for gold at the US Treasury. Since 1934, that is no longer possible.

    According to the estimates I have seen, the total value of all US banknotes in circulation is several times the value of the gold held by the US Government. Thus, your uncle is wrong.

    The US Dollar is not backed by gold. It is backed by the 'Full Faith and Credit of the United States Government' and nothing more.

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  • Anonymous
    7 years ago

    It maybe is in fort Knox, but I know in our history, there was a speci act(not sure if that's how its spelled) where you can trade in bank notes for gold or silver until they made to many bank notes that didn't have enough gold and silver to give to the people. Btw, bank notes are U. S. Dollars. That's what its called.

    Source(s): AP U. S. History
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  • Anonymous
    7 years ago

    In the sense that you can trade it for gold but they're not linked in. More like in the sense that you could trade your house for gold.

    You'll always get $1 worth of gold for $1 but that dollar could be worth anything. One day it could buy a gram, the next an ounce. (not likely but possible).

    The US came off the gold standard many years ago.

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  • Pat
    Lv 7
    7 years ago

    The US has not been on the gold standard, and there has been no gold in Fort Knox, for many years.

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  • 7 years ago

    FDR took America off the gold-standard in 1933

    http://www.youtube.com/watch?v=3_ex0sTsb_I

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    Richard Nixon cut all ties to the gold-standard in 1971

    http://www.youtube.com/watch?v=iRzr1QU6K1o

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    A good into to Bretton Woods

    http://www.youtube.com/watch?v=LlMHevIw9HU

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    There is still gold in Fort Knox - unfortunately, the purity and quality of this gold has recently been called into question. http://www.youtube.com/watch?v=mdAVlQGrEnE

    Youtube thumbnail

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  • Fred F
    Lv 7
    7 years ago

    Years ago money was backed by gold. But no more.

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  • Andrea
    Lv 4
    4 years ago

    It is suppose to be backed, it used to be backed. Now it has as much theoretical worth as monopoly money. You have just discovered the process of inflation...

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