Jesse Colombo: "Soaring Gold" is Another Way of Saying "Currency Collapse"

It’s fun watching our favorite asset go up. But keep in mind that, as a form of money, gold is actually an indicator of other currencies’ health. And the prognosis for those currencies is grim. Here’s an excerpt from a recent Jesse Colombo post that illustrates the point:

Gold Isn’t Going Up, Your Money Is Just Losing Value

Since 2007, major currencies have lost roughly 85% of their purchasing power relative to gold.

Whenever gold rises and I get excited as a gold investor, I’m often met with the familiar refrain: “Gold isn’t really going up, the dollar is just losing value.” I used to brush that off as a cliché or a game of semantics, and honestly, it annoyed me. But over time I decided to dig deeper. I started analyzing the data visually, which is my favorite way to learn, and that’s when it finally clicked. They were right. Gold wasn’t truly soaring; fiat currencies were quietly eroding. Since then I’ve made it a mission to help others see this clearly too, using compelling charts that drive the point home. That’s exactly what I’m going to show you today.

Let’s begin with a clear visual. The chart below shows gold’s performance since 2007 across several major world currencies: the U.S. dollar, euro, British pound, Swiss franc, Canadian dollar, Japanese yen, and Australian dollar. While this isn’t an exhaustive list of global currencies, it offers a solid and representative sample to support the points I’ll be making throughout this piece. As the chart reveals, gold has surged by around 450% in most of these currencies, with gains ranging from a low of 270% in Swiss francs to a staggering 748% in British pounds.

Next, I’ll present the same data from a different perspective. This time, I’ll highlight the purchasing power of each currency relative to gold, or in other words, how much physical gold each currency could buy over time.

Since 2007, the major world currencies featured in this report have lost approximately 85% of their purchasing power when measured against gold. On the low end, the Swiss franc has declined by about 73%, while the British pound has suffered the most, with an 88% loss.

This chart offers compelling visual evidence of a critical truth: it’s less about gold rising in value and more about fiat and paper currencies losing purchasing power at an alarming rate.

So why are we using gold as the yardstick? Because it’s the most reliable monetary yardstick in history. For over 6,000 years, gold has served humanity as the premier form of money and store of value. While it temporarily fell out of favor starting in the 1970s, it is now making a powerful comeback as the world begins to recognize the deep flaws in our fiat money and monetary system.

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There’s much more. Read it here.