Gold remains strongest currency in the long term

A comparison of the performance of fiat money (money which is not backed by physical assets) with that of gold shows how reliably the precious metal fulfils its function as a store of value. In a recent study, the World Gold Council analysed how the purchasing power of the euro, US dollar and other currencies has changed since the end of 2000, based on data provided by Bloomberg and the ICE Benchmark Administration. The study’s benchmark was the performance of gold. It shows that within the last 24 years – which have been characterised by global crises and, most recently, high inflation rates – all fiat currencies included in the study have lost a significant amount of their value.

Since the turn of the millennium: gold price increased almost ninefold

With an appreciation from 9.50 € per gram at the end of 2000 to 90.53 in February 2025, gold has reacted to the economic and geopolitical challenges of the last quarter of a century, in a calculation based on the euro. If the calculation were instead based on the gold price, as done by the World Gold Council in the cited study, the value of gold would have remained stable against the purchasing power of the euro, which would have suffered massively: The European single currency would have lost 88.2 per cent. The US dollar would have performed similarly, with an even higher loss of 89.48 per cent.

Swiss franc retains highest purchasing power

The Japanese yen and British pound fared even worse in the study, with a loss in purchasing power of 92.33 per cent and 91.14 per cent, respectively. The Swiss franc fared significantly better, with a loss of ‘only’ 80.92 per cent. The World Gold Council study is based on the theory that gold always retains the same value over a long period of time, as shown via the popular example of a loaf of bread: Around 2,500 years ago, one ounce of gold would have bought 350 large loaves of bread – and that remains the case today.