Banks are dumping US Dollars and Buying Gold

[Husires]

JUST IN: 🗺 The World foreign exchange reserves fell by a record $958 billion US dollars in 2022, while world official gold reserves went up by a record 1,136 tonnes.

Source: https://twitter.com/moneybadgernews/status/1644200525959688194?s=46&t=-OY8wZ1ceg0Edgcaco7Owg

It is true that the numbers are still far from the total supply of the US dollar, but all things can change with the passage of years or the occurrence of a major event such as what is happening now in terms of political blocs.

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[karmamiu]

Regular people are getting wiser on their financial management day by day. For sure they have realized that dollar is getting weaker and most of the basic needs are getting expensive. In the years that will come, their savings will be worth nothing if they'll let it sit there and rot. I don't knoe much about other countries but I am sure that those people who dump their dollars are planning ahead for their retirement, before they'd have limited options to only savings in the bank, but now that there are lots of access and information you can get through internet and web, they can expand their options to so many choices now.

[avikz]

They are becoming wiser it seems. Unless US government stops printing dollars and stop proving loans to banks at teaser rates, there's no way for USD to regain its previous purchasing power. Moreover, now many countries are initiating international trade using their own currency which is further worsening the situation for USD.

Gold has always been a great support for protection the capital investment. Probably that's what banks are trying to achieve as the market forecast stays gloomy. Wise step I would say!

[Zaguru12]

The dollar is currently facing lots of challenges most especially the lack of demand of the currency by foreign countries or the inflation. The high inflation rate of goods and services faced by the US has actually stop the demand for some of its products and couple with the fact that many companies or investors are also looking towards other countries for business because of the countries increasing interest rates. The is two only causes depreciation of the dollar.

The lack of demand of the dollar by other countries looks more of a threat to the dominance of the dollar as reserve currency and that is why the likes of China, Russia, Brazil, South Africa are looking towards using other currencies for internation trade. Also the stacking of Gold by most of the countries even Saudi Arabia has signifies that most of these countries are moving towards storing their reserves with currencies or commodities of value.

Gold has always been a great support for protection the capital investment. Probably that's what banks are trying to achieve as the market forecast stays gloomy. Wise step I would say!

Aside Gold the biggest threat I see to dollars is the bitcoin. The gold isn’t just gotten or accumulated by a common but since it doesn’t comes in fractions like that but with bitcoin also acting as a store of value and can easily be bought in fractions (satoshis) then investors of dollars might start moving in flocks to bitcoin just to save there funds from depreciating.

So it’s going to a tough time for dollars considering how Russia and China are up against it. It won’t be upsurge easily like that as a international exchange currency but it will be faced serious challenges

[Mr. Magkaisa]

  -   In these times many countries are now really becoming wise and even other individual people are the same in different parts of the world.

Most people already know that the dollar is not backed by gold, it seems that it does not have any support except that they are only increasing their debts to the US government, that is the truth. That's why as far as I know there are other countries that have joined forces with those backed by gold so that they no longer depend on the dollar. This is just what I found out recently.

[Dickiy]

The dollar has many problems today, and it has been proven that America is strong because of the dollars circulating in the world, and we see that the owner of the dollar is always arbitrary towards other countries that threaten him, of course it will be a special concern for countries if they continue to use the dollar as foreign exchange. countries, moreover some banks in America today are starting to lose control and some of them are already bankrupt like SVB, of course it will have an impact on world confidence if such a failure occurs, which maybe other countries will think worse if they continue to use dollars.
From some information that countries that keep gold in American and British banks they started withdrawing it.

[goaldigger]

It is true that the numbers are still far from the total supply of the US dollar, but all things can change with the passage of years or the occurrence of a major event such as what is happening now in terms of political blocs.

Banks are buying gold and still have the reserve in US banks, that can be odds but it looks like the safest way for them to protect the value of their money. Many countries are cutting their ties with the Dollar, a lesser exposure can save their own economy. As we've heard some movements in central Asia when it comes to fuel and currency adoption, it looks like they are slowly getting away from the influence of USD and that can tell something. Let's see if Bitcoin will also be their option, the current situation of US Economy can affect a lot, small countries can't afford to ignore this threat.

[ElmedoRator]

Such decisions by banks are very complex and include many different factors, so it is not possible for me to make an accurate assessment of the banks' dumping of US dollars and purchases of gold. However, it is conceivable that these decisions could be encouraged by a number of economic and geopolitical factors, such as the weakening of the US dollar due to local monetary and fiscal policies. government, a period of global geopolitical instability, uncertain growth in the economy, and the dwindling status of countries' gold reserves.

[Ever-young]

The Banks are just gradually opening the people's eye, and they are gradually going back to the old ways where Gold was the biggest reserve any institution could ever have.
With everything happening in the banking sector the continues dollar printing, etc know one is ever ready to trust the dollar system again.
Luckily it's not a obligation or a must do for everyone to use the united state dollar, so every country have the right to initiate and authorize what currency they can actually trade with on international trade with their friendly neighboring countries.

[tread93]

JUST IN: 🗺 The World foreign exchange reserves fell by a record $958 billion US dollars in 2022, while world official gold reserves went up by a record 1,136 tonnes.

Source: https://twitter.com/moneybadgernews/status/1644200525959688194?s=46&t=-OY8wZ1ceg0Edgcaco7Owg

It is true that the numbers are still far from the total supply of the US dollar, but all things can change with the passage of years or the occurrence of a major event such as what is happening now in terms of political blocs.

The banks know that we're about to see probably the worst financial collapse maybe ever, so no wonder they are all loading up on gold. I think every world government is, they're probably using what's left of their US dollar reserves to do so as well....

[Eternad]

It’s a normal reaction towards the weakening dollar due to inflation and the recent Digital Yuan & upcoming Bricks+ currency that will surely get part of of USD dominance globally. Banks is now preparing for the worst case scenario and started to back from the original reserves which is gold that value is consistent over a long period of time.

Economic war will be heightened once China is already ticked the bomb on US looming economic crisis.

[BenCodie]

The banks know that we're about to see probably the worst financial collapse maybe ever, so no wonder they are all loading up on gold. I think every world government is, they're probably using what's left of their US dollar reserves to do so as well....

Exactly. There is no other reason as to why banks, governments and institutions would all begin to buy gold at an exceptionally fast rate concurrently unless they know something negative is about to happen to the US Dollar.

I wonder if any of these establishments are buying Bitcoin as well...

[iv4n]

Dump the dollars and gold and get into Bitcoin, if you are not in already!

Jokes on the side, we all know what banks stand for, so who really cares what they are doing... with an exception of people who have loans there and interest rates are growing, they are directly hit when banks change numbers... just because they can do it.
I chose Bitcoin, it's always good to have some cash and gold (diversification is a must), but I have more faith in crypto than in anything traditional like fiat and gold. I guess it's a fact that Doge is doing better in the last +5 years than many fiat currencies. Something to think about it.

[imamusma]

I wonder if any of these establishments are buying Bitcoin as well...

Of course I think it exists, otherwise - I don't think the US government would have specifically warned of the dangers of crypto investing alongside bank collapses.

It is possible that many people have withdrawn their savings budget from banks and are looking for other safe investment options including gold for stability. Another possibility is that some of them consider bitcoin as another store of value, not fiat and gold. That is an assumption that may well have some truth to it, which is why the US has been increasingly warning crypto investors lately.

[Gyfts]

Accepting that this chart is in fact accurate (I wouldn't have reason to doubt it, most countries are dumping USD at record rates) -- If USD stabilizes again, it's possible banks might up their USD reserves again so I'm cautious to call this a significant turning point. These institutions rely on having currency reserves because it makes business more efficient -- they accept inflation to be the price of doing businesses if they can grow the funds at a rate that outpaces inflation. Having near double digit inflation rates for currency that's sitting and decaying isn't worth keeping anymore.

[el kaka22]

Gold is something that gains value against every fiat in the world, doesn't matter if we are talking about dollar, euro, pound, yuan or ruble. This is why getting more and more of it makes a lot more sense, I still would prefer if nations started to get a lot more crypto, that would make a lot of sense and that could give people what they were looking for.

But, sometimes we just gotta face the reality that we are not going to end up with anything like that and just go with gold instead. Main reason is that the money nations have, I mean governments have, is so much that spending all of it on bitcoin would literally cripple the bitcoin economy, even smaller nations may have as much as a few billion dollars easily.

[Hispo]

It’s a normal reaction towards the weakening dollar due to inflation and the recent Digital Yuan & upcoming Bricks+ currency that will surely get part of of USD dominance globally. Banks is now preparing for the worst case scenario and started to back from the original reserves which is gold that value is consistent over a long period of time.

Economic war will be heightened once China is already ticked the bomb on US looming economic crisis.

It makes me believe that banks who are getting rid of their USD and buying gold are doing so because want to be sure of storing their value in the case of the American dollar losing some global importance in the years to come, facing the Yuan and the BRICS alternative currency.

If they were sure that the USD was not going to suffer in the future, there should be no reason for those banks to buy Gold instead investing that cash in American debt/Treasury Bonds... That is very telling if you ask me.

Perhaps, something could happen and I am not yet completely informed about it. 

[jrrsparkles]

The trust level of US dollar started to climb down when they starts printing enormous amount of money in 2020 for covid crisis so now governments all over the world face inflation such as US so they are looking for the safest option and gold is one of the asset so there is no wonder if governments are increasing their gold reserves but did you notice something by the government? They are not encouraging investors to invest on gold and also increasing tax and duties for gold and jewellery to stop people accumulating it.

[blockman]

They just want to preserve their wealth and they don't see it happening with the current situation of dollars. Whilst them buying gold, there will be some of these financial institutions that's gonna buy some other form of assets, who knows if they'll start going on with bitcoin and it's no longer a secret if any of them does it. They always prepare and look at the situation of the economy and they've got some contingency plans if ever something worse comes out of it.
We shall see if this situation will change when the policies and economic moves will be in favor of them, I think that they're a good indication on what's the actual thing that we're seeing lately.

[DrBeer]

Everything is much simpler, let's not manipulate the information!

There is a great resource https://www.lbma.org.uk/prices-and-data/precious-metal-prices#/
What is this ? This is the London Bullion Market! This is a wholesale OTC market for gold and silver trading.

On their website you can see in the chronology the change in the price of gold. Above is the link - see. And look at the yearly marks. If you notice, then the surges are quite "synchronized" with the international economy, and absolutely coincide with the 2009 crisis (a consequence of the global financial crisis), the 2019+ crisis (covid-19), the 2022 crisis (Russian terrorist attack on Ukraine and economic terror against the EU). Those. conclusion #1 - nothing out of the ordinary is happening, the classic flow of fiat stocks into gold.

But that is not all. The title of this topic is "banks are draining DOLLARS." We check. If banks drain exactly dollars, then the price in dollars should grow much faster than, for example, the price in Euros. It is logical.
We check - in the chart header there is a currency switch. There is dollar, pound, euro. We change - we observe ... The price in dollars since July 20202 has been periodically changing, in the corridor ~ 1800-2000, but in the pound and euro - a systematic ascending chart.

Conclusion #2. There is NO purposeful exchange of DOLLAR for GOLD. And there is information manipulation and an attempt to wishful thinking

The question is - why MANIPULATE data that is easy to check, and why engage in SUBSTITUTION of the essence of what is happening? No, no matter how much you write such articles - smart countries and people will not refuse the dollar