When the Dollar Crashes, All That Glitters Will Be Gold

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The central banks of the world all know that a weak USD will affect their own financial systems if they are holding large reserves of the greenbacks. The only hedge is to dispose the USD and add real value into their monetary system by holding large reserves of the gold metal.

It is not a matter of “if” the demise of the U.S. dollar is going to happen, but a matter of “when”. We have seen signs of its weakening in the last couple of years and it does not look like it will recover any time soon. The actions of a number of other countries are adding fuel to the fire and can only confirm that the best U.S. dollar hedge is gold.

The central banks of the world may have followed the U.S. in getting off the gold standard, in addition to having pegged their currencies with the USD, but not for much longer. They all know that a weak USD will affect their own financial systems if they are holding large reserves of the greenbacks. The only hedge is to dispose the USD and add real value into their monetary system by holding large reserves of the gold metal.

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