Topic: Banks are dumping US Dollars and Buying Gold - page 2. (Read 208 times)

The dollar is currently facing lots of challenges most especially the lack of demand of the currency by foreign countries or the inflation. The high inflation rate of goods and services faced by the US has actually stop the demand for some of its products and couple with the fact that many companies or investors are also looking towards other countries for business because of the countries increasing interest rates. The is two only causes depreciation of the dollar.

The lack of demand of the dollar by other countries looks more of a threat to the dominance of the dollar as reserve currency and that is why the likes of China, Russia, Brazil, South Africa are looking towards using other currencies for internation trade. Also the stacking of Gold by most of the countries even Saudi Arabia has signifies that most of these countries are moving towards storing their reserves with currencies or commodities of value.


Aside Gold the biggest threat I see to dollars is the bitcoin. The gold isn’t just gotten or accumulated by a common but since it doesn’t comes in fractions like that but with bitcoin also acting as a store of value and can easily be bought in fractions (satoshis) then investors of dollars might start moving in flocks to bitcoin just to save there funds from depreciating.

So it’s going to a tough time for dollars considering how Russia and China are up against it. It won’t be upsurge easily like that as a international exchange currency but it will be faced serious challenges

They are becoming wiser it seems. Unless US government stops printing dollars and stop proving loans to banks at teaser rates, there's no way for USD to regain its previous purchasing power. Moreover, now many countries are initiating international trade using their own currency which is further worsening the situation for USD.

Gold has always been a great support for protection the capital investment. Probably that's what banks are trying to achieve as the market forecast stays gloomy. Wise step I would say!

Regular people are getting wiser on their financial management day by day. For sure they have realized that dollar is getting weaker and most of the basic needs are getting expensive. In the years that will come, their savings will be worth nothing if they'll let it sit there and rot. I don't knoe much about other countries but I am sure that those people who dump their dollars are planning ahead for their retirement, before they'd have limited options to only savings in the bank, but now that there are lots of access and information you can get through internet and web, they can expand their options to so many choices now.

Source: https://twitter.com/moneybadgernews/status/1644200525959688194?s=46&t=-OY8wZ1ceg0Edgcaco7Owg

It is true that the numbers are still far from the total supply of the US dollar, but all things can change with the passage of years or the occurrence of a major event such as what is happening now in terms of political blocs.