Two-Tier Gold Mart

Summary of Two-Tier Gold Mart

A system under which gold is traded at two distinct prices. A fixed price is set for transactions among governments, while a market price (subject to the supply and demand mechanism) is established for public-sector transactions. This system was reestablished in the United States in 1968. In those cases where a significant disparity exists between the official and market prices, extensive speculation is apt to arise.

(Main Author: William J. Miller)