# Gold clause

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{{Short description|Contractual clause regarding payment}}
thumb|Bond coupons that promise to "pay in gold coin"

'''Gold clauses''' in [contract](/source/contract)s allow a [creditor](/source/creditor) the option to receive payment in gold or gold equivalent. A gold clause may prove valuable to the creditor in long term contracts, wherein questions may arise as to whether a [currency](/source/currency) in use at the time the contract was entered into would still have the same value when payment is due. Creditor concerns in respect to [inflation](/source/inflation), [war](/source/war), changes in government, and any other uncertainty about the future value of currency would be common reasons for adopting a gold clause within a contract.

==Overview==
These clauses were common at the beginning of the 20th century.<ref>{{Cite book |last= Nussbaum |first= Arthur |author-link= Arthur Nussbaum|title= Money in the Law National and International: A Comparative Study in the Borderline of Law and Economics |year= 1950|publisher= The Foundation Press, Inc.|place= Brooklyn |edition= 2nd |page= 226 }}</ref>  However, their use in the [United States](/source/United_States) was invalidated by
the Joint Resolution of June 5, 1933 (Pub. Res. 73–10) and the [Gold Reserve Act](/source/Gold_Reserve_Act) of 1934. Congress later rendered gold clauses again enforceable for contracts issued after October 28, 1977, as codified in {{UnitedStatesCode|31|5118}}(d)(2).

In 2008, the [United States Court of Appeals for the Sixth Circuit](/source/United_States_Court_of_Appeals_for_the_Sixth_Circuit) affirmed the enforceability of such clauses in the decision ''216 Jamaica Avenue, LLC vs S&R Playhouse Realty Co.''.<ref>[http://www.ca6.uscourts.gov/opinions.pdf/08a0322p-06.pdf 216 Jamaica Avenue, LLC vs S&R Playhouse Realty Co.]</ref>

==See also==
* [Escalator clause](/source/Escalator_clause)
* [Gold Clause Cases](/source/Gold_Clause_Cases)

==References==
{{reflist}}

==External links==
*[https://www.goudinkooputrecht.nl/gouden-sieraden-verkopen-deskundige-taxatie-gediplomeerd-taxateur/ Gold Appraiser]

Category:Contract clauses
Category:Gold

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Adapted from the Wikipedia article [Gold clause](https://en.wikipedia.org/wiki/Gold_clause) by Wikipedia contributors ([contributor history](https://en.wikipedia.org/wiki/Gold_clause?action=history)). Available under [Creative Commons Attribution-ShareAlike 4.0 International](https://creativecommons.org/licenses/by-sa/4.0/). Changes may have been made.