$58,184 Today, Dollar Down 98.28% vs. Gold Since Nixon Severed The Tie To Gold, The Printing Press Is Just Warming Up, & Why This Trend Is Far From Over!

The image is stark. It shows that $1,000 worth of gold purchased in 1970 would be worth $58,184 today. This is not a story about gold appreciating. This is a story about the U.S. dollar systematically and relentlessly depreciating.

Since President Nixon severed the dollar’s last link to gold in 1971, the currency has been in a state of managed decline. But look closely at the picture and it is clear that since the 2024 breakout, the dollar’s decline vs. gold is accelerating more rapidly than before.

What the chart truly reveals is that the U.S. Dollar has lost a staggering 98.28% of its purchasing power when measured in the one asset that has maintained its value for millennia.

A dollar today buys less than two cents of the gold it could have in 1970. With the fundamental structure of the global monetary system unchanged, and the pressures on the dollar only intensifying, the trend is not only set to continue; it is set to accelerate even further.

• You need to know that $1,000 worth of gold in 1970 is worth an astonishing $58,184 today, a testament to the dollar’s massive loss of purchasing power.
• You need to know the U.S. Dollar has depreciated by 98.28% against gold since 1970, meaning it buys less than 2% of the gold it once could.
• You need to know the global monetary system has been based on a fiat dollar standard since 1971, a system that guarantees ongoing currency debasement.
• You need to know major foreign buyers of U.S. debt, like China and Japan, are stepping away, leaving a massive funding gap for what’s coming.
• You need to know the U.S. faces a fiscal crisis with $9 trillion in bonds needing to be rolled over in 2026, on top of multi-trillion-dollar annual deficits.
• You need to know the Federal Reserve will be forced to print a lot more currency to monetize the debt, further debasing the dollar.

And you need to know that while the dollar is being printed into oblivion, gold’s annual supply remains stable, and central banks are accumulating it at a record pace. The great takeaway is that the melting ice cube of the dollar vs. gold continues on until a force so strong alters the trend. All signs point to that force not being present now or for some time to come.

Let’s Dig Into The Following:

1. The above chart is not an anomaly. It is the visual representation of a half-century-long trend of monetary debasement. When President Nixon “closed the gold window” in 1971, it fundamentally altered the nature of money. The dollar was no longer anchored to anything of tangible value. It became a pure fiat currency, its value determined by government decree and the whims of central bankers. Why the 98.28% decline against gold is not a statistical quirk; it is the inevitable consequence of a system designed for inflation!
2. The U.S. dollar’s status as the world’s reserve currency has long been predicated on the willingness of foreign nations to hold U.S. Treasury debt. That willingness is now evaporating, despite what the “experts” are suggesting. This is outlined below by major country. Why this unfolding perfect storm situation leaves the Federal Reserve as the only entity capable of absorbing the trillions in new debt that the U.S. government needs to issue!
3. The demand side of the Treasury equation is in serious jeopardy at the precise moment that the supply side is exploding. The U.S. is already running annual deficits in the $2-3 trillion range, a number that is set to grow as the baby boomer generation is now retiring en-masse, shifting unfunded liabilities like Social Security and Medicare onto the government’s balance sheet. Why despite all the debt, deficits, and geopolitical circumstances that are putting pressure on the U.S. bond market, the need for increased spending is only increasing, and the only way out is to print and print they will, because math is math!
4. While the supply of U.S. dollars is set to explode, the supply of gold remains remarkably stable. Annual mine output is relatively fixed, and it is becoming increasingly difficult and expensive to find and extract new deposits. Not much has changed with gold supply going back to 2010, and when considering that no new large deposits have been found for decades, the reality is that dramatically increasing gold supply moving forward will not be happening anytime soon. At the same time, demand for physical gold is soaring. Why the trend is irreversible, the demand for real assets is growing, the supply of those assets is limited, and that is all a recipe for a much, much higher gold price!
5. And so it is time to place our bets!