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Thursday, December 17, 2009

This Day in Wall Street History 1878: Gold Exchange shuts down

By 1878, the rise of the silver movement and rampant currency deflation had taken their toll on gold. The premium on the precious metal had virtually vanished, leaving gold traders with little work to do.

So, rather than twiddle their thumbs and wait for a turnaround, leaders of the nation's Gold Exchange decided to close shop on Dec. 17. However, the dawn of 1879 saw a reversal of gold's fortunes and the Exchange re-opened its doors for business.

Source: History.com

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