Global Currency Crisis & Gold – What’s Really Going to Happen in 2011 – 2012

Following on from the first 2 parts in this series: Whats really going to happen in 2010 Whats going to happen in 2010/2011 – part II Another great writer and analyst makes it into our categories section, Bob Chapman of Global research with a seminal must read piece outlining the road ahead towards a new [...]

Purchasing Power Gold vs Paper Currency vs Time

by admin on 10/11/2009

Even now, you quite often see clueless economists say that the Dow has outperformed Gold  prices significantly over time. This is untrue except in NOMINAL value.

Yes, the numbers are more, but these “analysts” fail to grasp the continual erosion factor, the destruction of the buying power of their favourite paper over time.

The excellent Dollardaze site have a great post up on the purchasing power of Gold vs Paper over time, we highly suggest you visit and read the full article after you’ve looked at some of their pretty pictures here..


US Dollar purchasing power

UK GBP purchasing power

Purchasing Power of the CAD and Amount in Circulation

Purchasing Power of the AUD and Amount in Circulation

Interestingly enough, the remaining two currencies – the Japanese Yen and the Swiss Franc – displayed greater resilency to monetary inflation and depreciation. This is especially true for the Swiss Franc – the amount of Swiss Francs in circulation increased a relatively modest 280% over the same period. The explanation may lie in the fact that even though the Swiss Franc has not been technically (legally) convertible to gold, the Swiss Central Bank has attempted to maintain proper gold backing of the Franc, which in turn, had the effect of moderating inflation.

Purchasing Power of the JPY and Amount in Circulation

Purchasing Power of the CHF and Amount in Circulation

Gold Purchasing power

Supply Fold-Increase Change in Unit Value (%)
Gold 1.8 +310.4
CHF 3.8 -23.7
JPY 15.9 -25.4
USD 16.8 -81.1
CAD 15.4 -84.4
AUD 33.5 -88.2
GBP 12.6 -88.3

Do yourself a favour, get started buying Gold now, and get a FREE Gram!

{ 2 comments… read them below or add one }

Mercer E Curtis Jr. June 22, 2012 at 01:29

I have many friends that claim the purchasing power of Gold has not changed over the past 100 years. How can this be true?

David L Olson October 20, 2012 at 13:35

100 years ago, a $5.oo gold piece would buy you a beer and flea infested room.

Today it would buy you a porterhouse steak, several martinis, a nice clean hotel room, flat screen TV and a hooker.

A $5.oo gold piece is 1/10 th of an ounce of gold.

You be the judge.

Leave a Comment

{ 8 trackbacks }

Previous post:

Next post: