Gold was worth $40 back then now worth $1800 or 45x increase. S&P 500 has also gone up 45x in that time, although you would have got paid Dividends as well, which gold doesn't pay. Average house hold income in 1971 was 10,000 USD, which bought 250 ounces of gold for $40. (After tax it would of course bought less) Average house hold income today is around 100,000 USD, which buys just 55 ounces of gold. American household income was pretty good back in 1971. It bought $450,000 worth of gold or $450,000 worth of SP500 stock in todays money.
Actually, a good case is frequently made by economists that decoupling from the gold standard has given the United States outsized prestige and leverage as a World Reserve Currency. About sixty percent of worldwide transactions use US Dollars.
"Actually, a good case is frequently made by economists that decoupling from the gold standard has given the United States outsized prestige" The "U.S. Dollar" as the world reserve currency was officially agreed on at Bretton Woods. And it was only made possible by the U.S. having huge gold reserves, a unique situation of having been last man standing after WWI and WWII. I can't see any prestige from the U.S. having to cancel these arrangements in 1971, due to massive social programs and lack of hard money. That is nothing other than poor management (aka buying votes)
%% BUT gold has much , much much wilder swings; that not a problem unless someone want to withdraw some out for real estate or anything.Its also a bigger problem if one likes to\ or accidently buys highs. SOME gold coins have done much better; but they have ''changed'' the way @ least once[ we know of ] they have been appraised , not in favor of the buyer. Huge bid\ ask on coins+ storage or insurance on gold/ unless self insured..................................................... Thanks for your comment.
Due to massive spending on all kinds of programs besides social ones, buying votes on the left AND the right.