Gold Is the Ultimate Money

Gold has long been regarded as a reliable store of value. When we examine historical gold prices (US $/oz), a notable trend emerges: a sharp rise beginning in 1971.

This shift coincides with the U.S. abandoning the gold standard under President Nixon, transitioning the dollar to fiat currency—a system where its value is backed by trust rather than a physical commodity like gold.

Magic exists as long as people believe in it. The same could be said for fiat currencies like the U.S. dollar. Its value depends entirely on trust. Once that trust fades, its value diminishes—because, at its core, it’s not backed by anything tangible.

The dollar is like a magician’s trick: convincing as long as the illusion holds. But what happens when people realize it’s just paper?

Both the S&P 500 and gold have increased by around 6,000% since 1971. If you consider the dollar to be “money,” you might think the S&P 500 has experienced a 6,000% increase. However, if you view “actual money” as gold, you’ll realize that the S&P 500’s value hasn’t changed as significantly when measured in terms of gold.