Whether it be for the long-term since 1971, the medium-term since 2000, or the short-term in 2015 – one fiat currency stands alone as the strongest by far.
In terms of gold, the median fiat currency since 1971 has lost 97.79% of its purchasing power, since 2000 has lost 75.82% of its purchasing power, and in 2015 has lost 4.61% of its purchasing power. By far, the fiat currency that has performed the strongest over the short, medium, and long-term has been the Swiss Franc.
Switzerland’s currency since 1971 has only lost 85.45% of its purchasing power, since 2000 has only lost 58.84% of its purchasing power, and in 2015 has increased in purchasing power by 4.82%.
The second best performing fiat currency over the long-term (since 1971) has been the Japanese Yen, which only lost 90.12% of its purchasing power. Still, Japan’s currency since 2000 has lost 78.41% of its purchasing power – making it the 9th worst medium-term performer out of the world’s 29 most traded currencies. In 2015, Japan’s currency has bounced back slightly, regaining 2.81% of its purchasing power – making it the 5th best short-term performer.
Despite the recent devaluation of the Chinese Yuan, it has been the second best performing fiat currency over the medium-term (since 2000) – losing only 67.13% of its purchasing power. In 2015, China’s currency has been the 8th best performer, increasing in purchasing power by 0.5%.
21 of the 29 most traded fiat currencies have declined in purchasing power vs. gold in 2015. The worst performing fiat currency in 2015 has been the Brazilian Real. Brazil’s currency has declined in purchasing power this year by 30.98%. After the Brazilian Real, the biggest declining fiat currencies in 2015 have been the Colombian Peso (down 20.64% in purchasing power), Malaysian Ringgit (down 17.7% in purchasing power), the New Zealand Dollar (down 15.54% in purchasing power), the South African Rand (down 14.17% in purchasing power), and the Indonesian Rupiah (down 12.48% in purchasing power).
Out of 14 currencies that have been circulating since 1971, 12 have declined in purchasing power by at least 96% – including the US Dollar, which has lost 96.68% of its purchasing power. Since 2000, the US Dollar has been in the middle of the pack, declining in purchasing power by 74.69%. In 2015, the US Dollar has regained 3.23% of its purchasing power, and we believe it is extremely overvalued at these current levels – with the Fed afraid to raise the Fed Funds Rate by even 25 basis points and the likelihood of QE4 increasing on a daily basis.
Since 1971, gold has increased by 2,914.45% priced in US Dollars, but has only increased by 912.2% priced in Japanese Yen and 587.12% priced in Swiss Franc.
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