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Foreign central banks are moving into gold because they no longer consider U.S. debt a safe asset.

The abandonment of the gold standard during World War I allowed countries to print money to fund the war, which would not have been possible if they adhered to gold's discipline. This shift marked the beginning of the end for Europe's dominance.

In 1971, America came off the gold standard due to excessive spending on the Vietnam War and President Johnson's welfare programs. This led to a situation where the US didn't have enough gold to back the dollars it had printed.

Since the final vestiges of the gold standard were abandoned in 1971, the supply of money has ballooned. This has led to more money chasing the same amount of goods, contributing to the rise in prices over the years.

In 1925, Britain returned to the gold standard at the pre-war rate as a show of strength, but it was a 'fake gold standard' since gold was no longer in circulation, unlike in the 19th century.