Gold Pool

Updated: Aug 20, 2021

In 1961, eight countries (the United Kingdom, France, West Germany, Switzerland, Italy, the United States, Belgium and the Netheriands) informally agreed to intervene in the London Gold Market to prevent pressure on the price of gold and avoid too much speculation by preventing the price from rising above $35-19,875. This was done by forming the Gold Pool. In 1967 at the time of U.K. devaluation, France, for reasons best known to herself, opted out. and there was considerable speculation. This led to a crisis in the Gold Market, the creation of a two-tier price system, and the abandonment of the Gold Pool.

Reference: The Penguin Business Dictionary, 3rd edt.

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James Knight
Editor of Education
James is the Editor of Education for Invezz, where he covers topics from across the financial world, from the stock market, to cryptocurrency, to macroeconomic markets.... read more.