A comparison with the performance of fiat currencies – particularly the US dollar, the world’s reserve currency, and the euro – shows how well gold fulfils its role as a store of value and hedge against inflation. According to the “Monthly Gold Compass April 2026”, the US dollar has lost 93.8 percent of its purchasing power against gold since the turn of the millennium, while the euro has lost 92.9 percent. Broken down into individual years and compared with the real inflation rate trend, data from the London Stock Exchange and the statistics portal Statista provide various interesting insights.
Gold significantly outpaced inflation in most years
From the turn of the millennium to the present, the gold price has almost consistently outperformed inflation. In 2010, for example, the inflation rate in the Eurozone stood at 1.6 percent, while the gold price rose by 38.6 percent over the same period. The following year saw inflation reach 2.7 percent, while gold was up 13.9 percent. However, there were also years in which gold offered no protection against inflation in the short term. 2013 was one such year, with the euro gaining 44.7 percent in purchasing power against the precious metal. Overall, these snapshots demonstrate the fact that gold shines particularly over longer investment horizons, whereas the precious metal’s performance can be disappointing in the short term, even during periods of inflation.
Gold can offer a valuable contribution to portfolio return
Particularly in recent years, gold has played a prominent role in overall portfolio performance: With a 35.6 percent appreciation in 2024, a 44.9 percent increase last year and – despite an interim slump – a 10 percent rise in 2026, the precious metal has not only protected portfolios against inflation, which has been around 2 percent this year, but has also proven to be one of the most successful asset classes overall.