The world continues dumping US dollar (Gold, New World Order, World War III)

[pooya87]

Gold buyers binge on biggest volumes for 55 years
Central banks are scooping up gold at the fastest pace since 1967, with analysts pinning China and Russia as big buyers in an indication that some nations are keen to diversify their reserves away from the dollar.
Data compiled the World Gold Council, an industry-funded group, has shown demand for the precious metal has outstripped any annual amount in the past 55 years. Last month’s estimates are also far larger than central banks’ official reported figures, sparking speculation in the industry over the identity of the buyers and their motivations.

The last time this level of buying was seen marked a historical turning point for the global monetary system. In 1967, European central banks bought massive volumes of gold from the US, leading to a run on the price and the collapse of the London Gold Pool of reserves. That hastened the eventual demise of the Bretton Woods System that tied the value of the US dollar to the precious metal.
Last month the WCG estimated the world’s official financial institutions have bought 673 tonnes. And in the third quarter alone central banks bought almost 400 tonnes of gold, the largest three-month binge since quarterly records began in 2000.



“The message these central banks are sending by putting a larger share of their reserves in gold is that they don’t want to be reliant on the US dollar as their main reserve asset,” Menke said.
Some in the industry speculate Middle Eastern governments are using fossil fuel export revenues to buy gold, most likely through sovereign wealth funds.

The world continues dumping US dollar, I've already talked about India buying gold and many times about Iran accumulating gold over the past couple of years. Now we have evidence of the other Eastern powers buying large amounts of gold. Many other smaller countries that don't fall into the global geopolitics like Qatar, Turkey, Uzbekistan, some African countries, etc. are also accumulating more gold.
 
This is the New World Order that is forming in front of our eyes, the old Dollar standard is slowly but surely going away which is causing high inflation in US as all the unbacked dollars they'd printed all these years are being dumped on USA itself and even higher inflation is seen in any country that is importing US inflation like Europe. Experts suggest that if US wasn't exporting its inflation, the real US inflation would have been somewhere north of 450% and that's where it's headed as the dollar dumping continues.

I recently watched an analyst who suggested that this is World War 3 which will be fought (at least for now) economically. The East vs. West as the East dumps US dollar that strains US economy. China suddenly lets loose COVID on the world (this past 2 weeks) that is already showing an increase in EU and US. Oil price ends the year with the 2nd straight annual gain and the general high energy prices among other things is slowly rendering EU useless as an economy and industrial power.

Although economy is not the only battlefield (we have energy, food and actual armed conflict between proxies) but it is affecting us the most. It is even affecting bitcoin price as it has successfully prevented its rise to higher ATH last year and even changed its bull trend and crashed the price below the previous (2017) ATH for the first time in bitcoin history.

With that said, 2023 outlook is already bad economically speaking.
How much of the points I raised do you agree with and how do you see 2023 specially when dollar dumping continues?

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[davis196]

Some countries are dumping the US dollar as a reserve currency, not as an international medium of exchange.
The global recession is coming and it's normal for the central banks(and all kinds of private and institutional investors) to buy more gold(which is the ultimate safe heaven). The US dollar cannot be viewed as a safe heaven. I'm curious about the Russian-Chinese alternative to the US dominated financial system. So far we haven't seen anything that looks like a complete replacement of the US dollar. I don't think that China is ready to dump the US dollar. I agree that the Federal Reserve keeps exporting inflation outside the USA and I agree that the USD dominance cannot continue forever.

[hugeblack]

The figures that you mentioned cannot be adopted as a reference to know the global trend unless it continues in the same direction. For example, we all know the reason for many banks buying gold after February 2022, and therefore waiting for a year or two will determine whether it is a temporary fear or is it a permanent trend.

In general, we can see that some countries have begun to think about diversifying their reserves, and therefore we may witness an attempt to buy gold or some currencies, but it will be shy in order to compensate for inflation in the US dollar, but radical changes will require a world war.

[naira]

Gradually, people's view of the US dollar is quite critical, but paper money will become worthless. Now the role of gold is increasingly rising to the surface and has always been maintained for a long time. 2023 is a great opportunity and at the same time weakens the US. Middle Eastern countries with a wealth of oil, gold and natural resources they produce have pushed the US economic position to the brink.

I admit that the New World Order is before our eyes, whether we realize it or not. Because capitalist stakeholders can easily reverse the movement of the economy. This sounds like a conspiracy, but if proven true are we just going with the flow?

[Smartprofit]

Some countries are dumping the US dollar as a reserve currency, not as an international medium of exchange.
The global recession is coming and it's normal for the central banks(and all kinds of private and institutional investors) to buy more gold(which is the ultimate safe heaven). The US dollar cannot be viewed as a safe heaven. I'm curious about the Russian-Chinese alternative to the US dominated financial system. So far we haven't seen anything that looks like a complete replacement of the US dollar. I don't think that China is ready to dump the US dollar. I agree that the Federal Reserve keeps exporting inflation outside the USA and I agree that the USD dominance cannot continue forever.

Mass buying of gold can have several reasons. 

First, we are witnessing the collapse of the globalization system in the world. 

And the United States was the universally recognized center of world globalization.  I don't believe in a US dollar crash anytime soon.  However, his credibility in the world has weakened.  Therefore, many countries are following the path of accumulating gold reserves. 

Secondly, the new rules of the Basel Committee make it easier for the central banks of all countries to include gold bars in foreign exchange reserves.  These rules actually weaken the US dollar and strengthen the role of gold in global finance.

[Fortify]

Gold buyers binge on biggest volumes for 55 years
Central banks are scooping up gold at the fastest pace since 1967, with analysts pinning China and Russia as big buyers in an indication that some nations are keen to diversify their reserves away from the dollar.
Data compiled the World Gold Council, an industry-funded group, has shown demand for the precious metal has outstripped any annual amount in the past 55 years. Last month’s estimates are also far larger than central banks’ official reported figures, sparking speculation in the industry over the identity of the buyers and their motivations.

The last time this level of buying was seen marked a historical turning point for the global monetary system. In 1967, European central banks bought massive volumes of gold from the US, leading to a run on the price and the collapse of the London Gold Pool of reserves. That hastened the eventual demise of the Bretton Woods System that tied the value of the US dollar to the precious metal.
Last month the WCG estimated the world’s official financial institutions have bought 673 tonnes. And in the third quarter alone central banks bought almost 400 tonnes of gold, the largest three-month binge since quarterly records began in 2000.

“The message these central banks are sending by putting a larger share of their reserves in gold is that they don’t want to be reliant on the US dollar as their main reserve asset,” Menke said.
Some in the industry speculate Middle Eastern governments are using fossil fuel export revenues to buy gold, most likely through sovereign wealth funds.

The world continues dumping US dollar, I've already talked about India buying gold and many times about Iran accumulating gold over the past couple of years. Now we have evidence of the other Eastern powers buying large amounts of gold. Many other smaller countries that don't fall into the global geopolitics like Qatar, Turkey, Uzbekistan, some African countries, etc. are also accumulating more gold.
 
This is the New World Order that is forming in front of our eyes, the old Dollar standard is slowly but surely going away which is causing high inflation in US as all the unbacked dollars they'd printed all these years are being dumped on USA itself and even higher inflation is seen in any country that is importing US inflation like Europe. Experts suggest that if US wasn't exporting its inflation, the real US inflation would have been somewhere north of 450% and that's where it's headed as the dollar dumping continues.

I recently watched an analyst who suggested that this is World War 3 which will be fought (at least for now) economically. The East vs. West as the East dumps US dollar that strains US economy. China suddenly lets loose COVID on the world (this past 2 weeks) that is already showing an increase in EU and US. Oil price ends the year with the 2nd straight annual gain and the general high energy prices among other things is slowly rendering EU useless as an economy and industrial power.

Although economy is not the only battlefield (we have energy, food and actual armed conflict between proxies) but it is affecting us the most. It is even affecting bitcoin price as it has successfully prevented its rise to higher ATH last year and even changed its bull trend and crashed the price below the previous (2017) ATH for the first time in bitcoin history.

With that said, 2023 outlook is already bad economically speaking.
How much of the points I raised do you agree with and how do you see 2023 specially when dollar dumping continues?

While I have no doubt that a few countries are trying to diversify away from the dollar, see: Russia. All you've presented is a chart of gold purchases and you have just made up an entirely unsupported narrative, aka a lie. It makes you look quite naive and foolish, or just a sad propaganda puppet. There could be all sorts of reasons why gold trades are happening, Russia may have a lot and simply need to sell it off because they don't have access to trade via the world banking system, other countries like India might be taking advantage of the situation while it is available and buying up large quantities far under market value. Neither of these mean what you have suggested in the title and you're conspiracy crap like New World Order shows your ridiculous slant on the story.

[Ucy]

Well, the world is too dependent on dollar more than you think. So I don't see it being abandoned soon. Dollar will experience massive fluctuations and will bounce back again  after falling massively. Bitcoin will actually benefit from its falls, especially this year. 

[Leviathan.007]

I would replace some words and say the world is dumping fiat currency not just the us dollar the reason is the increasing inflation rate of the world when people see their hard-handed money worth less than yesterday and they have to invest their money or find a way to stay safe from the inflation in their country they will have to look for a suitable asset depending on themself and the money they have, here assets like gold and bitcoin will have more demand from people and this will even attract more people to staff from the bad economic situation in their country.

[pooya87]

Some countries are dumping the US dollar as a reserve currency, not as an international medium of exchange.

It is both actually. The biggest example that was made public is Russia that started selling its energy for their own currency effectively replacing US dollar as "international medium of exchange".
There are a lot of other examples like Iran selling fuel to other countries for gold and basically a lot of countries in BRICS and SCO trading using their national currencies.

I'm curious about the Russian-Chinese alternative to the US dominated financial system.

So far I have seen a lot of solutions including but not limited to gold, each country's national currency, a new currency created by BRICS and even bitcoin. But also so far there doesn't seem to be any agreement on the actual solution to use on large scale.

Middle Eastern countries with a wealth of oil, gold and natural resources they produce have pushed the US economic position to the brink.

Exactly. A lot of countries with resources are starting to realize that they had all the power all this time not the colonizers who starve for those resources.

I don't believe in a US dollar crash anytime soon.  However, his credibility in the world has weakened. 

I agree but collapses like this can start slowly and show as weakening at first and then comes the collapse. In has happened in the past, before US introduced Petrodollar and saved its economy US dollar dumped more than 50% in 6 months.

I would replace some words and say the world is dumping fiat currency

Unfortunately that will never happen in our lifetime. It is the replacement of one centralized currency with another centralized currency. When these countries buy gold one of the reasons is to back their centralized limitless fiat to try and strengthen it and create a strong incentive for others to use it for trades.
On top of that with the new era of CBDCs we are seeing even more centralized fiat (in digital form).

[Argoo]

I would replace some words and say the world is dumping fiat currency not just the us dollar the reason is the increasing inflation rate of the world when people see their hard-handed money worth less than yesterday and they have to invest their money or find a way to stay safe from the inflation in their country they will have to look for a suitable asset depending on themself and the money they have, here assets like gold and bitcoin will have more demand from people and this will even attract more people to staff from the bad economic situation in their country.

The growing interest in gold is a consequence of the deteriorating economic situation around the world, and not distrust of the US dollar. Rising inflation is observed in all countries, so it is quite reasonable that against this background, the governments of some states are now buying up gold. The dollar is going through a difficult period, like any currency of states.
In addition, uncertainty about the future also comes from the current political situation, and primarily because of Russia's military aggression against Ukraine. Russia has started a war that it is not able to win, and now the threat of collapse hangs over it. In any case, Russia will no longer be able to influence world processes, as before. Therefore, big shifts in spheres of influence are coming.

[Apocollapse]

Now I wonder why Bitcoin price is keep decreasing over and over, while the other assets e.g. gold, S&P 500, housing price (in my area) are keep increasing? I think many articles and people mostly said Bitcoin is hedge against fiat money, but in the reality it's different. Bitcoin price is seems has huge influence due to super cycle rather than the adoption and trust. I think not many people are really trust Bitcoin for 100% since they're prefer to play safe to convert their fiat to gold or stock.

[Moneyprism]

the trend of countries dumping USD seems to continue going forward, for example my country is starting to leave USD in trading with several countries and this of course benefits my country because then we no longer need to own/buy USD in our trades with other countries ,, the govermant can use their own currency and this of course will help the economy .. but the negative effect is that the US started to cancel their cooperation in some sectors and in my opinion it looks childish

[Mauser]

With that said, 2023 outlook is already bad economically speaking.
How much of the points I raised do you agree with and how do you see 2023 specially when dollar dumping continues?

I am really surprised that gold has been performing so well in the last 2 months, because the rest of 2022 it was not moving at all. Still remembering my grandparents telling me that gold is the best investment when the world is in trouble, but when the Russia Ukraine war started and we reached double digit inflation rates nothing happened to gold. Maybe the correction we are seeing right now was overdue. Gold seems a good trading material for Russia as the have been isolated on international markets for months now. China could come in a similar situation if they increase the aggression towards Taiwan. Maybe we going to see gold become the number currency for international trade again if the Dollar dumping continues. This could be also good for crypto currencies as they are an alternative to gold for protecting our money.

[kro55]

Now I wonder why Bitcoin price is keep decreasing over and over, while the other assets e.g. gold, S&P 500, housing price (in my area) are keep increasing? I think many articles and people mostly said Bitcoin is hedge against fiat money, but in the reality it's different. Bitcoin price is seems has huge influence due to super cycle rather than the adoption and trust. I think not many people are really trust Bitcoin for 100% since they're prefer to play safe to convert their fiat to gold or stock.

Regarding safety, bitcoin is still not comparable to gold or real estate, bitcoin is only 13 years old and not as popular and widely recognized as gold. So it's not uncommon for people to choose gold over bitcoin.

In my opinion, bitcoin is now just a tool to manipulate the profits of tycoons, not a real asset. It's true that bitcoin has advantages over gold and fiat money, but it's too small to assume it can replace a thousand-year-old recognized asset like gold. In 2022, the stock market alone had evaporated more than 20 trillion due to the crisis, while the entire capitalization of cryptocurrencies is around 800 billion. Bitcoin's revolution is just beginning, we don't need to rush.

[Coyster]

I am really surprised that gold has been performing so well in the last 2 months, because the rest of 2022 it was not moving at all. Still remembering my grandparents telling me that gold is the best investment when the world is in trouble, but when the Russia Ukraine war started and we reached double digit inflation rates nothing happened to gold.

The price of gold doesn't move spontaneously, it isn't a volatile asset and that is why it is relatively safe and prolly the most perfect hedge to inflation. Your grandparents are correct because gold is a store of value/safe haven asset, so what they meant by it is a great investment when the world is in trouble is that it can retain its value for a very long time, even amidst crisis and wars, it doesn't mean it 'multiplies' the value anyway.

Maybe we going to see gold become the number currency for international trade again if the Dollar dumping continues. This could be also good for crypto currencies as they are an alternative to gold for protecting our money.

Tbh i sincerely don't think we'd see that, some countries may be dumping dollar, but i disagree that it would be completely replaced by gold as the currency of international trade. Crypto doesn't technically protect people's money, a whole lot of them are scam/fake coins; Bitcoin is different though, and it can be a hedge to devaluation, but it is quite volatile in short term.

[naira]

Exactly. A lot of countries with resources are starting to realize that they had all the power all this time not the colonizers who starve for those resources.

And what weakens the US can of course be seen from the fact that the alliance of Asian countries is more supportive of the programs offered to the Middle East. So in general the US feels left out because what the US has been doing so far is taking or more precisely seizing the sources of wealth. It's a different story if cooperation between the Middle East and Asian countries, even though their interests are different, is able to provide mutual benefits. So this is where the thread for 2023 points to US transparency. Biden's leadership is considered too soft, compared to Trump's economic policies at his time which could make Russia even dare not move and dare not pressure western countries with gas prices. Look at the current phenomenon, what is the US doing? approach Saudi Arabia and establish cooperation. Unfortunately, Saudi Arabia can no longer be dictated to because it has abundant oil wealth as capital to stand tall.

[pooya87]

Now I wonder why Bitcoin price is keep decreasing over and over, while the other assets e.g. gold, S&P 500, housing price (in my area) are keep increasing?

I covered the reason for Gold price rising. I can't comment on other assets in your area but S&P500 has been dumping, in fact over the past year it got dumped about 20% which is huge in such a heavily controlled market.

The thing about bitcoin is that the market can be easily manipulated and we've had a lot of negative news like FTX collapse that created fake fear and panic sell that crashed the market. But also bitcoin is affected by the world economy and as the economy crashes, more specifically has inflation and recession at the same time, bitcoin price has a hard time going up.

Biden's leadership is considered too soft, compared to Trump's economic policies at his time which could make Russia even dare not move and dare not pressure western countries with gas prices. Look at the current phenomenon, what is the US doing? approach Saudi Arabia and establish cooperation. Unfortunately, Saudi Arabia can no longer be dictated to because it has abundant oil wealth as capital to stand tall.

I don't think so.
This has been a trend not something that happened over night. The plans to make EU addicted to Russian gas has been going on for decades, the plans to invade Ukraine has also been going on for at least 10 years.

Same with Saudis, you have to look at the bigger picture. Saudi family did exactly what Russia is doing for the past 8 years but with the help of US. They invaded their neighbor, the poorest Arab country called Yemen to steal their vast energy sources and gain a strong geopolitical status. During during Trump administration the US military proved its inability to protect them against the country they've been invading. So when the invadees started retaliating and hit Saudi oil infrastructure, Saudi military bases and US military bases successfully the Saudi family realized US is too weak to ensure their future survival in the war ordered by US; so they slowly started changing their position and shifted toward East. This is why you see China in Saudi Arabia selling them crap while US complains and expresses "concerns" from afar without doing anything.

All these changes would have happened regardless of who the POTUS is and will continue after sleepy Joe goes away.

[Frankolala]

Actually gold investment is more profitable and valuable than dollar, because the dollar can face economy crisis and will depreciate since it is under the influence of human activities. Gold is a natural resources that was endowed by nature, it is a precious assets that has been  there for a very long period of time and it has been used by kings and royalties to show valuable it is. Gold do appreciate in value, A country can't control gold price or its value.

The US dollar is controlled by US government,and if they are facing inflation challenge,they still went ahead to print money,they are only deceiving themselves because it will worsen the situation and this gradually will depreciate the dollar. US government is focus more on the war and are not seeing the consequence of the war yet on the world economy, forgetting that it will weaken the US economy and dollar strength.

Central bank understood all these,that is why they bought 400 tonnes of gold to invest their dollar in,so that their assest can increase in value instead of depreciation. Yes more people will still abandon the dollar for gold this year.

[Ozero]

Gradually, people's view of the US dollar is quite critical, but paper money will become worthless. Now the role of gold is increasingly rising to the surface and has always been maintained for a long time. 2023 is a great opportunity and at the same time weakens the US. Middle Eastern countries with a wealth of oil, gold and natural resources they produce have pushed the US economic position to the brink.

I admit that the New World Order is before our eyes, whether we realize it or not. Because capitalist stakeholders can easily reverse the movement of the economy. This sounds like a conspiracy, but if proven true are we just going with the flow?

The economic situation in the world continues to deteriorate, so it is quite reasonable that both people and states pay attention to such eternal values as gold and try to get rid of a large number of banknotes. Most likely, we are talking about dollars, since their mass is the largest in the world of finance. This should be attributed to all national currencies of states. This should hardly be regarded as the establishment of a new World Order. Similar events have occurred periodically in the past and will continue to occur in the future. Economic booms and busts don't just happen in the world of cryptocurrencies.

[kryptqnick]

Russia is known to focus on gold purchases because they're trying to basically temporarily return to the gold standard since the start of the full-scale war, and I must say this strategy worked pretty well, helping to stabilize ruble after it fell a lot from the sanctions and general panic. Relying on one fiat as a safeguard for another fiat is riskier than relying on something that's been historically more stable and is at least different from fiat. That being said, I think that dollar will remain the main global reserve, at least when it comes to a top fiat currency which is a global reserve. The rise of gold is IMO a temporary thing, especially since it has its own issues. People didn't move away from the gold standard without reason, after all. And gold caused issues historically if suddently too much of it appeared somewhere.