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MisesInstitute/Thorsten Polleit/8-13-2020
“On August 4, 2020, the price of gold surpassed $2,000 per ounce, currently trading around an all-time high of $2,050 per ounce. While one may say that the price of gold is on the rise, it would actually be more meaningful to say that the purchasing power of the world’s fiat currencies vis-à-vis gold is on the decline, because this is what a rising price for gold and silver in, say, US dollars, euros, Chinese renminbi, Japanese yen, or Swiss francs really stands for: The higher the price of this precious metal, the lower the exchange value of official currencies.”
USAGOLD note: As Polleit points out, the debasement process in the world’s leading currencies has been going on for quite some time – a key reason for gold’s rise against most of those currencies over the past 12-14 months as shown in the chart below.
Gold in various currencies
(Indian rupee, European euro, British pound, Chinese yuan, Japanese yen and U.S. dollar)
Chart courtesy of TradingView.com • • • Click to enlarge