Fiat currencies see sharp depreciation against gold in 2025

The coins and banknotes issued by a sovereign state are their national fiat currency. According to the official definition, its value is determined by public confidence in the issuing state and the country’s economic performance. The development of a fiat currency’s value is particularly apparent when compared to gold as a store of value. According to the ‘In Gold We Trust Chartbook’ published in mid-October 2025, the gold price has risen sharply in all industrialised countries’ currencies thus far this year, which on the flip side is reflected in a decline in purchasing power and thus a devaluation of these currencies.

US dollar purchasing power decreased by more than one third in 2025

A 56 percent increase of the gold price in the US year-to-date corresponds to a 36 percent loss in the purchasing power of the US dollar in just under a year – accurately reflecting investors’ at least temporary loss of confidence in the US dollar. In addition to the US government’s economic policy, the main factors responsible for this development are the excessive debt of the state, banks and companies, as well as fears of the AI stock market bubble bursting.

Other currencies also declined sharply against gold price

The negative development of the US national purchasing power against gold is certainly the most significant, but it is by no means an isolated case. Even in euros, gold has appreciated by roughly 40 percent since the beginning of the year, which corresponds to a loss of purchasing power of 29 percent. Following the US dollar, the Canadian and New Zealand dollars have seen the most dramatic loss in value against gold, each down nearly 35 percent. The Japanese yen and South Korean won are each down around 34 per cent, while the Singapore dollar has depreciated 33 percent against the gold price and the British pound sterling 32 percent.