Since its introduction, the euro has lost 85% of its value relative to gold. Over the past 25 years, the ECB has expanded the money supply faster than this metal is mined.This decline reflects a persistent erosion of purchasing power, driven by structurally loose monetary policy and repeated liquidity expansions in response to economic crises within the Eurozone.
The euro’s depreciation against gold highlights its vulnerability to long-term monetary dilution, particularly in an environment of negative real interest rates and sustained balance sheet expansion by the ECB.
