Depressing to see how much discussion on HN (!!) has resulted from a objectively terrible graph reading. I mean... in the process of our infiltration by finance bros and VC money, have we genuinely forgotten how exponentials work?
What? Gold underwent a massive revaluation with the end of Bretton Woods in 1971. It was prior to then that government were actively involved in making the price of gold artificially low.
Fun fact: under 31 U.S. Code § 5117 a troy ounce of gold is still valued at 42 and 2/9ths dollars.
Gold became much ‘cheaper’ in the period 1945-70 because there was a series of technical revolutions in South Africa mining (never mind the apartheid …) This is why Breton Woods lasted as long as it did.
The countries like France that conspired in resentment to break it as ‘privilege’ are now effectively in flames.
The right to a civil jury trial in the 7th Amend. to the US Constitution is only available where the value in controversy exceeds twenty dollars (a massive sum in 1791, and a trifle now).
You got it backwards; ending the gold standard was very much a unilateral decision by the United States because Nixon couldn't handle making politically unpopular decisions to cut spending and/or end the Vietnam war. Many countries that had their gold reserves held via US dollars were livid.
Well, there's an arguable point of fiscal policy there, and a conspiracy rathole that no one wants to excavate.
But none of that matters here. As grandparent comment indicates, you're making a pretty fundamental math error. This is a log chart. Government may have devalued currency. It did not do so exponentially.
It won't though. One dollar in 1960 is just about ten dollars today. The graph is already in logarithmic scale so it won't make much difference.