Per Moneywise

Moneywise released a report discussing the dollar's dominance and sought to answer the question as to whether the US dollar was replaceable or not. The report compared gold vs. the US dollar, finding that the latter lost 98% of its purchasing power since 1971.

The article found that gold was able to maintain its purchasing power and that it kept stable over time. Moneywise listed down the different advantages of opting for a gold IRA.

Here's what moneywise found to be the benefits of gold.

Portfolio diversification
Stabilizing finances
Less risk than alternative investments

The report was published on February 2023 with a section talking about how sanctions on countries have inspired a backlash from China and Russia, among other countries. This led Russia to push to create a new "international currency standard" and China wanting to make yuan payments to major exporters.

"The U.S. dollar’s dominance is underappreciated. As of late-2022, the greenback accounts for 59.79% of total foreign reserves. In comparison, the Euro accounts for 19.66%, while the Chinese renminbi accounts for just 2.76% of global reserves."

The article also noted that the US dollar would still dominate the market even if China expands its market share twenty-fold. The article noted that it would still lag behind the US dollar.

Recently, French President Macron said that Europe should reduce its dependence on the US dollar. He also noted that Europe should better fund its defense industry and develop nuclear and renewable energy.

Malaysia and China are also to discuss an "Asian Monetary Fund," which would result in lesser dependence on the US dollar. Before that, China and Brazil entered a deal to trade their own currencies to avoid using the US dollar as an intermediary.

China is its biggest trading partner of Brazil, with a record $150.5 billion in bilateral trade in 2022.

See flow at unusualwhales.com/flow.

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