With inflation, gold notes and cards find their way into America's wallet

The dollar has lost 86% of its purchasing power since 1971

With inflation running at its highest levels in four decades, Utah business owner Steve Allred is concerned about the declining purchasing power of the U.S. dollar.

To help protect against the possibility that it will get worse, Allred, like many investors, has bought gold. He has also begun to accept some forms of the precious metal as payment in the three hardware stores that he owns with his brother.

Allred is among a group of Americans that are increasingly turning to gold as an alternative currency as unprecedented government spending and Federal Reserve easing threatens to further erode the value of the greenback.

The dollar has lost 86% of its purchasing power since 1971, according to U.S. government data, when President Richard Nixon ended the fixed convertibility of dollars to gold. Gold prices have jumped from around $40 per ounce to $1,900 during this time, Qazet.az reports.

In addition to its use in jewelry, central bank reserves and some industrial applications, gold has long had some passionate advocates who believe it holds its value better than fiat currencies like the dollar, because governments can issue debt and print money supply at will.

U.S. dollars in circulation are $2.25 trillion, up from $1.80 trillion in early 2020 and just over $800 billion in 2007, Federal Reserve data show.