Gold Points

Gold Points

Summary of Gold Points

A variation in the value of two gold standard currencies against the value of physical gold so as to warrant the export of gold. For example, if the exchange rate for French francs rose above a certain point, it would be more profitable to export gold to France and sell it for francs than to exchange dollars directly for francs. The abandonment of the gold standard by most major trading nations and the advent of instantaneous arbitrage facilities have obviated the significance of gold points.

(Main Author: William J. Miller)


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