London Gold Pool

London Gold Pool

The deposit of gold reserves made by eight central banks in 1961 in order to preserve the price of $35 per ounce of gold. The London Gold Pool sold gold on the London bullion market periodically whenever the market price of gold began to rise above $35. The sales were intended to help preserve the Bretton Woods System, whereby most currencies were pegged to gold. The London Gold Pool gradually dissolved with the failure of the Bretton Woods System in the late 1960s and early 1970s.
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In 1961, the US responded by creating the London Gold Pool, which obliged other countries to reimburse the US for half of its gold losses.
In February 1968, the London Gold Pool is dissolved and gold prices commence a dramatic rise, starting a new era.

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