Dollar's Decade-Long Decline: Gold Soars as Fiat Currency Falters

The concept of sound money has its roots in the 19th century, when countries adopted the gold standard. Sound money refers to a currency whose supply cannot be expanded by decree, ensuring that it holds its purchasing power over time.

Since 1971, the US dollar has lost approximately 87% of its purchasing power, according to Bureau of Labor Statistics data. In contrast, the price of gold rose from $35 per ounce to above $4,500, a gain exceeding 12,000%.

Central banks purchased a record 289 tonnes of gold in the second quarter of 2026, with Poland leading the charge and China adding 33 tonnes. This trend suggests that even though the gold standard has ended, central banks still value gold as a reserve asset.