The dollar is losing credibility, central banks are scrambling for gold
6 days ago
- #geopolitical-tensions
- #gold-reserves
- #central-banks
- Serbia's central bank governor faced an issue where gold bars worth millions were left on a Swiss airport runway.
- Central banks globally are increasing gold reserves, disrupting traditional economic logic and driving up gold prices.
- Gold's price hit a record high amid geopolitical tensions and concerns over the US Federal Reserve's independence.
- The share of gold in central banks' reserves has doubled in the past decade to over 25%, the highest in nearly 30 years.
- Central banks are repatriating gold stocks held overseas and reducing exposure to the US dollar due to geopolitical risks.
- The dollar's dominance is waning due to erratic US policies, economic sanctions, and loss of credibility in global finance.
- Gold has surpassed the euro to become the second-most important reserve asset after the dollar.
- Many central banks plan to increase gold allocations and repatriate reserves for safety amid political instability.
- Countries like Poland, Germany, and China have been actively repatriating or accumulating gold reserves.
- Cryptocurrencies are seen as potential rivals to gold and traditional currencies, but central banks remain cautious.