Intrinsic Value of the Dollar: An Evaluation, and Scrutiny of the Absolute Worth of The U.S. Dollar.

The debate on the intrinsic value of the U.S. Dollar has intensified recently and been an ongoing one, ever since 1971, when, President Richard Nixon, announced the abandonment of the Gold standard. In the debate on the intrinsic value of the Dollar, it may be argued, that Gold has been seen as a currency with an 'absolute worth' greater than all fiat currencies, due to Gold's historical acceptance power, and prominence as 'money.' With the abandonment of the Gold standard, and the Dollar, fundamentally, not being pegged to Gold, or any other units of intrinsic value, critics, ever since, have raised concerns regarding the absolute, or intrinsic value of the U.S. Dollar. This paper scrutinizes the intrinsic value of the U.S. Dollar, with an alternative perspective applied to gauge the Dollars' intrinsic value; the evaluation has been carried out through established financial models for a holistic assessment. The paper elaborates an alternative mechanism through which the Dollar derives its intrinsic value, and quantifies the nominal value backing the USD, $1079.3 trillion, and a real value, in 1970 Dollars, of $208.4 trillion; this value, aligned with the Gold standard peg of 1970, stands at 5.95 trillion ounces of Gold.