By 1908, most central banks in Europe had adopted the gold standard, which required them to focus on maintaining their gold reserves. This commitment meant that if they faced a loss of gold, they had to increase interest rates or take other measures to stabilize their currency. As a result, the gold standard provided a framework that facilitated financial stability across nations.

This system was beneficial for investors, as it minimized the likelihood of significant fluctuations in exchange rates. With the assurance of stable currency values tied to gold, investors could engage in trade and investment with a greater sense of security, knowing that the risks associated with currency volatility were significantly lowered.