In September 1949, Britain devalued the pound by 30% against the dollar, and more than two dozen countries followed within days. The post-war "dollar shortage" — the world's hunger for the only currency reliably convertible into gold — had forced the issue. The episode underscored the central reality of Bretton Woods: with gold fixed at $35 and the dollar its proxy, the United States now sat at the center of global money, and everyone else adjusted around it.
Gold Price History · Bretton Woods
1949
The Great Devaluation
Sterling and a string of currencies devalued sharply against the gold-backed dollar, confirming its dominance.
- Average price
- $35/oz
- In 2025 dollars
- $472/oz
- Change on the year
- +0.0%
- After inflation
- +1.0%
1949 in context · real value, 1929–1969
What would $10,000 of gold in 1949 be worth today?
Run the numbers across gold, stocks, housing, and bonds — adjusted for inflation.
Calculate 1949 →How gold did in 1949
Value at year-end of $10,000 invested on 1 January 1949.
Gold $10,000 +0.0%
S&P 500 (total return) $11,830 +18.3%
US housing $10,009 +0.1%
Inflation (CPI) $9,876 −1.2%
Annual-average basis. Gold: Officer & Williamson; S&P 500 & Treasuries: Damodaran (NYU); housing: Shiller; CPI: BLS. Methodology →
Related years
Sources. Gold price: Officer & Williamson, The Price of Gold, 1257–Present (annual average); inflation adjustment by US CPI (BLS / Officer & Williamson). Asset comparison from the calculator dataset. Figures are annual averages. Full methodology →