But fiat money wasn't always this dominant. The US Dollar, for example, was once backed by gold. This was known as the "gold standard". Between 1879 and 1933, the United States directly linked the price of the dollar to a certain amount of gold. But the Great Depression of 1929 made it impossible to maintain the gold standard, and the system At. 7:30. ,The tutor says that the commodity money is also representing faith and trust which is also true for Fiat money .But my main problem with this notion is that the government can print it as much as fiat money as it wants. But the amount of gold and silver can't just be produced just like that, there value is derived by demand and Fiat currency vs. Gold standard - Side-by-side Comparison Have you ever considered why people often make Fiat currency vs. gold standard side-by-side comparisons? What are their differences and similarities, and why should every passionate Forex trader learn it well? First, far back in history, gold began to have a great value as a precious metal […] The 1875-CC Liberty Head design The 1924 Double eagle, Saint Gaudens' design. Hard money policies support a specie standard, usually gold or silver, typically implemented with representative money.. In 1836, when President Andrew Jackson's veto of the recharter of the Second Bank of the United States took effect, he issued the Specie Circular, an executive order that all public lands had to be Throughout the 19th century and up until the Great Depression, the gold standard was used in the United States. It was largely abandoned in the 20th century. Fiat money is an alternative to commodity money, which is a currency that has intrinsic value because it contains, for example, a precious metal such as gold or silver which is embedded in the coin. Fiat also differs from representative money , which is money that has intrinsic value because it is backed by and can be converted into a precious Silver Standard: A monetary system in which a country's government allows its currency to be freely converted into fixed amounts of silver, and vice versa. Under the silver standard, an exchange Fiat currency vs. Gold standard - Side-by-side Comparison Have you ever considered why people often make Fiat currency vs. gold What exactly were the pros and cons of the gold standard vs the silver standard during the time? And if the silver standard had been chosen, what do you all think the US economy would have looked like fifty years after 1900. Actually, the only good thing about a fiat currency like Federal Reserve bank notes is that it is an elastic currency So, private corporations got together with the government and they came up with this fiat money idea and they installed the Fred or the Federal Reserve in 1913. And that really started the transition. So we were still on a gold standard, but they shifted from a 20th of an ounce to a dollar, to 20th of an ounce to $2 and 40 cents, which enabled F4f0N.