Buy Gold: U.S. Dollar to lose world reserve currency status

Gold Investment - 5 December 2011

The U.S. Dollar has been the de facto world reserve currency for a while now, but that is slowly but surely changing. Needless to say, those who don’t take note of this all important fact and who choose not to get out of the U.S. Dollar (or fiat-based assets for that matter) stand to lose a lot in the days, months and years to come.

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Gold Investment had a discussion with Chinese citizens recently and it seems that it is public knowledge in China that the U.S. Dollar is toast and won’t survive for much longer. Maybe more importantly, the Chinese government is actively encouraging their citizens to acquire precious metals, especially gold and silver, in order to for one protect themselves against the coming collapse of the U.S. Dollar (and other fiat currencies). This while the exact opposite set of affairs are prevailing in the so called ‘Western World’ where the bulk of citizens don’t have the faintest clue pertaining to gold and silver’s true worth (or the global fiat Ponzi scheme for that matter), where bankers and their political allies actively discourage true gold and silver ownership, especially through gold and silver price suppression. In fact, while “…the U.S. and Europe have an alternative agenda to dissuade people from viewing gold as an international reserve currency, China's upping their ante. In doing so, China aims to push other countries towards reserving in more and more in gold; leaving the U.S dollar by the wayside” (China Weakens Dollar By Buying MORE Gold, Wealth Wire, Brittany Stepniak, 15 September 2011). It should therefore not come as a surprise that an increasing number of countries are stocking up on gold, physical gold that is. Word is out that Belarus, Colombia, Kazakhstan, Mexico and Russia for one have added a collective 25.7 metric tons to their existing gold reserves in October alone. It is also no secret that Venezuela is in the process of bringing all their gold back to Venezuela from vaults in England and elsewhere. The Venezuelans rejoiced and partied in the streets when the first batch of more or less 160 tons of gold arrived from the Bank of England while Nelson Merentes, the President of the Venezuelan Central Bank, openly proclaimed that: “We are bringing the gold back because unfortunately capital markets and the world economy are in turmoil, and for that reason it is preferable to seek protection” (Gold Reserves Added by the Billions Across the Globe, Wealth Wire, Mike Tirone, 29 November 2011).

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Invest in precious metals today! Contact us for details.

Yes, there are some countries that have decreased some of their gold reserves, mostly in order to coin commemorative coins and more, but data “…from the IMF shows that central banks and government institutions bought 142 tons last year while it is predicted that this year may mark purchases of 450 tons of gold…” (Gold Reserves Added by the Billions Across the Globe, Wealth Wire, Mike Tirone, 29 November 2011). Why would they be stocking up on gold if the U.S. Dollar’s de facto world reserve currency status is not slowly but surely disappearing? Unlike in the 70s, this time around, only more or less 5% of the U.S. Dollar’s value is backed by gold and it is not redeemable in gold or silver.