Gold vs Currencies: Another Year of Evidence

An excellent overview was published by showing the 2012 performance of almost all currencies in the world against gold. In the article Race to Debase 2012 – Fiat Currencies vs Gold & Silver, 164 fiat currencies were analyzed against the precious metals. Big surprise, 94% of all fiat currencies lost purchasing power to gold. The rare currencies that did not lose value compared to gold, did so with a minor percentage difference. By contrast, the average loss (“median” to be correct) of purchasing power to gold was 7.0%.  The overview is worth reviewing and realizing what is happening worldwide with currencies. Indeed, they are like the 599 other paper currencies that have ALL gone, as research has shown.

For a quick summary, we refer to where the yearly performance of gold in all major currencies is shown. The overview is shown in the following graph.

As Nick Barisheff pointed out, it is not the price of gold that goes up, it is the value of currencies that is declining. 2012 was just another year that proved it to be true.

Receive these articles per e-mail

Subscribe for the free weekly newsletter and receive 3 papers about physical precious metals investing