Increasing dominance of gold

[MarjorieZimmermanGinger]

I was watching a video where they told that now most countries are depositing gold as reserves instead of buying US dollar deposits. Does this mean that price of gold will be uncontrollable in coming years ? Is it going to affect the buying behavior related to gold for common people ?

It has been happening for a long time and almost many countries are holding gold as an effort to increase reserves to limit dependence on the dollar. The price of gold can be said to be stable and even if it increases, it is not as volatile because for a long time the movement of gold prices has tended to be stable. Recently, gold has experienced a significant price increase momentum, but if traced year by year, the price has increased over a fairly long period.

For the general public, buying gold is a habit that is done because I saw long before people stored gold compared to storing fiat currency and maybe the influence still exists, but gold has become part of the investment for most people before.

[Stalker22]

I was watching a video where they told that now most countries are depositing gold as reserves instead of buying US dollar deposits. Does this mean that price of gold will be uncontrollable in coming years ? Is it going to affect the buying behavior related to gold for common people ?

It has been happening for a long time and almost many countries are holding gold as an effort to increase reserves to limit dependence on the dollar. The price of gold can be said to be stable and even if it increases, it is not as volatile because for a long time the movement of gold prices has tended to be stable. Recently, gold has experienced a significant price increase momentum, but if traced year by year, the price has increased over a fairly long period.

For the general public, buying gold is a habit that is done because I saw long before people stored gold compared to storing fiat currency and maybe the influence still exists, but gold has become part of the investment for most people before.

Bluntly put, you're both right and wrong. Its true that some countries have been buying up more gold to rely less on the dollar - thats not new.  And yeah, in the past gold was viewed as stable store of value you could count on.   

But to say gold prices are always stable and not volatile just isnt right.  The price of gold goes up and down a lot. Not like cryptocurrencies, of course, but still.  The big price jumps we have seen lately is volatility, plain and simple.

[STT]

most countries are depositing gold as reserves

Its a good question even if its a very old one, its a constant debate between the two.   Gold reserves are ancient and much neglected as of late.   The gold cannot yield anything as its a plain deposit or asset saving but its very reliable in that gold never changes where as the dollar is feared right now to have gigantic changes that people fear so much that gold is ahead most likely now and for many years imo.  

I dont see gold as dominant, I see it has fallen behind by so much in any reasonable usage it could double more then once and still not catch up to the run away FIAT usage.   FIAT also has so many ongoing problems especially in its integrity that gold is not even close to dominant so far, gold can keep gaining is my basic take from its subdued position of a half century or more.   Theres alot of space for readjustment imo.

[Onyeeze]

I was watching a video where they told that now most countries are depositing gold as reserves instead of buying US dollar deposits. Does this mean that price of gold will be uncontrollable in coming years ? Is it going to affect the buying behavior related to gold for common people ?

most of the countries that likes to boost their economy likely in five years coming, they do like to invest on something that will resurrect their economy and the thing will have a store of values, so I think we are supposed to know the economy of a country can only be good through the governoring council of the country, theirs some country who build theirs countries for future purposes and some to do not bother for the future betterment of their country.

[Iranus]

Bluntly put, you're both right and wrong. Its true that some countries have been buying up more gold to rely less on the dollar - thats not new.  And yeah, in the past gold was viewed as stable store of value you could count on.   

But to say gold prices are always stable and not volatile just isnt right.  The price of gold goes up and down a lot. Not like cryptocurrencies, of course, but still.  The big price jumps we have seen lately is volatility, plain and simple.

If we compare the volatility of gold with other assets like fiat money, bitcoin or stocks...it is not wrong to say that gold is more stable.

People often say gold is stable, meaning it is not dumped and has little volatility due to factors such as inflation, economic crisis...Gold prices are stable but not fixed, we need to distinguish these two things are different.

Furthermore, volatility includes both increases and decreases but the term “volatility” is usually only used in cases where prices change sharply, suddenly and unpredictably.

[landheer]

If we compare the volatility of gold with other assets like fiat money, bitcoin or stocks...it is not wrong to say that gold is more stable.

People often say gold is stable, meaning it is not dumped and has little volatility due to factors such as inflation, economic crisis...Gold prices are stable but not fixed, we need to distinguish these two things are different.

Furthermore, volatility includes both increases and decreases but the term “volatility” is usually only used in cases where prices change sharply, suddenly and unpredictably.

Yes, it can happen and affect the value of gold, but the price can be volatile and caused by various factors and many influence it with the difference in the value of the goods, but it is different with gold even though the price is not fixed, but in the sense that it does not fall too much, its value is still stable, at most it shifts a few percent from the purchase price of the gold, when compared to other assets, of course gold is much better.

[Stalker22]

If we compare the volatility of gold with other assets like fiat money, bitcoin or stocks...it is not wrong to say that gold is more stable.
~

Well, I beg to differ. I think historical data shows that major fiat currencies, such as the dollar or euro, exhibit lower volatility than gold. Yes, fiat currencies can also experience periods of significant fluctuation (fo example, during periods of high inflation or economic crises), but gold tends to have larger percentage swings over shorter periods.  As proof, look at the price in just the past few days or weeks, for example.

[Abiky]

Regardless of whether gold prices hit an ATH or not, central banks will continue to buy gold because they see it as a safe haven that helps stabilize the economy. They buy gold to secure the economy, not to speculate like us, so they don't care about the price of gold.
But I agree with you, no matter how much the demand for gold increases, the world cannot eliminate the USD in the near future, it will still be the world's currency for the next few decades.

However, USD is still strong, accounting for 57% of global foreign exchange reserves but not as strong as you might think. USD's dominance has dropped from 66% to 57% since 2015 to date. This ratio will continue to decline in the coming years as BRICS accelerates de-dollarization.

https://wolfstreet.com/2025/01/05/status-of-us-dollar-as-global-reserve-currency-usd-share-drops-to-30-year-low-central-banks-pile-on-other-currencies-gold/

Well, USD's dominance will decline even faster with economic uncertainty in the US due to Donald Trump's tariffs. Countries might begin to move away from the USD as some sort of retaliatory measure against the on-going trade wars. BRICS already has two of the world's strongest economic forces (Russia and China), so there's a high chance it will succeed in the long run. The bloc can simply create its very own digital currency backed by Gold, Bitcoin, or even Oil. It might even challenge the EU itself.

As for Gold, I believe it will continue to rise due to rising geopolitical conflicts and economy uncertainty. Bitcoin will eventually "catch up" due to its limited supply and increasing demand. It is better than Gold, imo (portable, predictable supply, etc). There's no telling what will happen in the future, so I'd hope for the best.

[Iranus]

If we compare the volatility of gold with other assets like fiat money, bitcoin or stocks...it is not wrong to say that gold is more stable.
~

Well, I beg to differ. I think historical data shows that major fiat currencies, such as the dollar or euro, exhibit lower volatility than gold. Yes, fiat currencies can also experience periods of significant fluctuation (fo example, during periods of high inflation or economic crises), but gold tends to have larger percentage swings over shorter periods.  As proof, look at the price in just the past few days or weeks, for example.

Well, looking at the current gold price, we can easily see that gold is more volatile than currencies like USD, gold has increased by almost 50% from April 2024 to April 2025. But in my opinion, the recent increase in gold prices is not only due to increased demand but also due to the depreciation of the US dollar. Governments are losing faith in the US dollar and are increasing gold imports at record levels, which has pushed gold prices up.

The value of inflation-hedged assets like gold or bitcoin increases not only because of increased demand but also because of inflation, the depreciation of fiat over time.

[bubilas]

I was watching a video where they told that now most countries are depositing gold as reserves instead of buying US dollar deposits. Does this mean that price of gold will be uncontrollable in coming years ? Is it going to affect the buying behavior related to gold for common people ?

Until recently, gold was considered a safe haven currency, unlike cryptocurrencies, which were considered a rather risky asset, but recently the price of gold has risen so much that it has become unsafe to invest in it, because there is a simple law that if an asset is expensive, then when investing in it, it can collapse at any time.
At the same time, everyone continues to invest in gold because they don’t know any other way to save their money.

[Oluwa-btc]

I was watching a video where they told that now most countries are depositing gold as reserves instead of buying US dollar deposits. Does this mean that price of gold will be uncontrollable in coming years ? Is it going to affect the buying behavior related to gold for common people ?

It's clear enough to understand that gold is becoming more profitable as time goes on and a more reason people need to be fast and smart enough to hold it, and one thing that has made it differently from Bitcoin is the fact that it's a natural gift and with that nothing can change it's stability but compared to some years back it's been on a constant increase which has made alot of investors see much need to have it.So this is the main reason those countries are depositing gold in reserves for long term that would be of more benefits in the long run.

[Republikcoin.com]

Yes, it can happen and affect the value of gold, but the price can be volatile and caused by various factors and many influence it with the difference in the value of the goods, but it is different with gold even though the price is not fixed, but in the sense that it does not fall too much, its value is still stable, at most it shifts a few percent from the purchase price of the gold, when compared to other assets, of course gold is much better.

Gold is still known as an asset that is able to store the value of money better and can even provide benefits to its holders when the price of gold starts to increase again. We can see this in the last few days where the price of gold has increased several times, making more people surprised because this must be due to more gold buyers at this time. So it is not surprising that gold must still be considered good from other assets in its class in terms of price and value, but on every occasion we who already know about Bitcoin should not ignore Bitcoin and only rely on gold when we want to invest, because Bitcoin is also the best asset in terms of future investment.

[DanWalker]

Until recently, gold was considered a safe haven currency, unlike cryptocurrencies, which were considered a rather risky asset,

Gold has been considered a safe haven for hundreds of years, not just recently.

but recently the price of gold has risen so much that it has become unsafe to invest in it, because there is a simple law that if an asset is expensive, then when investing in it, it can collapse at any time.

Like other assets, gold prices can also correct when they peak, but they rise due to geopolitical and economic uncertainty, not speculation. Therefore, as long as the economy remains unstable, gold prices will not fall, and even if they do fall, gold will not be dumped like bitcoin or other speculative assets. Because the biggest holders of gold are central banks and they tend to buy in, rarely sell.

At the same time, everyone continues to invest in gold because they don’t know any other way to save their money.

I think people still choose gold over other assets because they know that it is the best and safest asset in the world.

[Hanadawa]

most countries are depositing gold as reserves

I dont see gold as dominant, I see it has fallen behind by so much in any reasonable usage it could double more then once and still not catch up to the run away FIAT usage.   FIAT also has so many ongoing problems especially in its integrity that gold is not even close to dominant so far, gold can keep gaining is my basic take from its subdued position of a half century or more.   Theres alot of space for readjustment imo.

Although it is not mentioned on the official website, I am sure that many countries in the world have started storing gold as their foreign exchange reserves. So far, China has reportedly stored their foreign exchange reserves in the form of gold and that is a big advantage for them. I think countries' confidence in the dollar has decreased drastically. I mean they can print money whenever they want and this has an impact on inflation which ranges from 10-15% each year. I think countries have begun to realize that storing assets in gold or Bitcoin is much safer than FIAT currencies. I think one of the reasons why China is not afraid of a trade war with the United States is because they have foreign exchange reserves in forms other than dollars or yuan. So even if the United States bans the yuan as an international currency, China can still trade using their gold.

[BALIK]

I think one of the reasons why China is not afraid of a trade war with the United States is because they have foreign exchange reserves in forms other than dollars or yuan. So even if the United States bans the yuan as an international currency, China can still trade using their gold.

Although gold reserves or increasing national reserves are intended to hedge against geopolitical risks, inflation and prepare for potential sanctions...and so far, China is holding 2.2 thousand tons of gold. But I think the reason China is not afraid of the United States in the trade war is because they are confident in the internal strength of their own economy. Not only are they the world's largest exporting nation, they are also the world's second largest consumer market. That means they believe they have enough strength to sustain the economy in the face of a trade war with the US, which has nothing to do with gold reserves because they will not use national reserves indiscriminately or when not really necessary.

[viljy]

~
So even if the United States bans the yuan as an international currency, China can still trade using their gold.

How is this even possible? I don't think Trump is powerful enough to ban any currency, especially the Chinese one. This would put him in an even more stupid position than with the tariffs. By the way, the yuan is included in the IMF's SDR. The IMF is controlled by globalists, just like the Fed. These are Trump's opponents. And so far, they're too much for him. But if Trump gets control of the Fed, he will be able to continue his "elephant in the china shop" actions, which will eventually cause the collapse of the dollar system, not the yuan...

[Mate2237]

I think one of the reasons why China is not afraid of a trade war with the United States is because they have foreign exchange reserves in forms other than dollars or yuan. So even if the United States bans the yuan as an international currency, China can still trade using their gold.

Although gold reserves or increasing national reserves are intended to hedge against geopolitical risks, inflation and prepare for potential sanctions...and so far, China is holding 2.2 thousand tons of gold. But I think the reason China is not afraid of the United States in the trade war is because they are confident in the internal strength of their own economy. Not only are they the world's largest exporting nation, they are also the world's second largest consumer market. That means they believe they have enough strength to sustain the economy in the face of a trade war with the US, which has nothing to do with gold reserves because they will not use national reserves indiscriminately or when not really necessary.

The fact is that China is one country that has developed themselves to the point where they can't be ordered around by the United States of America or any other country of the world in terms of economic sustainability China has been able to sustain their economy in the last two decades and has grown to the point of even expanding their agenda's overseas through their loans and things that they do so China can sustain their economy in any situation.


China is one of the world largest exporters in the world today so even if the United States of America decides to add tariffs on Chinese goods or decides to band goods from China to be entering the United States China will not shake because there are allot of countries that still prioritize goods from China

[BALIK]

Although gold reserves or increasing national reserves are intended to hedge against geopolitical risks, inflation and prepare for potential sanctions...and so far, China is holding 2.2 thousand tons of gold. But I think the reason China is not afraid of the United States in the trade war is because they are confident in the internal strength of their own economy. Not only are they the world's largest exporting nation, they are also the world's second largest consumer market. That means they believe they have enough strength to sustain the economy in the face of a trade war with the US, which has nothing to do with gold reserves because they will not use national reserves indiscriminately or when not really necessary.

The fact is that China is one country that has developed themselves to the point where they can't be ordered around by the United States of America or any other country of the world in terms of economic sustainability China has been able to sustain their economy in the last two decades and has grown to the point of even expanding their agenda's overseas through their loans and things that they do so China can sustain their economy in any situation.


China is one of the world largest exporters in the world today so even if the United States of America decides to add tariffs on Chinese goods or decides to band goods from China to be entering the United States China will not shake because there are allot of countries that still prioritize goods from China

As I said, they are not only the world's factory but also the second largest consumer market after the United States, they are the only superpower that can be economically self-sufficient. So any potential threat from the outside can affect them, but making them tremble or weaken is extremely difficult. The US can only slow down China's development in the short term, but it cannot completely stop their development, and it is too late to do so.

China's total annual exports are $3.5 trillion, of which more than $400 billion are exported to the US market. In addition, they also have large markets such as Hong Kong (291 billion), Germany (97 billion), Japan (139 billion), India, Russia...and many other trading partners. Indeed, if the trade war does not end soon, I believe the US will be the one to suffer more significant damage.

[Sjkah]

The price of gold is increasing day by day. The price of gold has increased three times from what it was three years ago. People are now hoarding gold without investing in Bitcoin or saving any dollars. The price of gold is increasing so much that people are now interested in hoarding gold. They think that if they invest in Bitcoin, the price can go down or up at any time, which is not guaranteed. But the way the price of gold is increasing, it will always increase.

[fruktik]

If we compare the volatility of gold with other assets like fiat money, bitcoin or stocks...it is not wrong to say that gold is more stable.

People often say gold is stable, meaning it is not dumped and has little volatility due to factors such as inflation, economic crisis...Gold prices are stable but not fixed, we need to distinguish these two things are different.

Furthermore, volatility includes both increases and decreases but the term “volatility” is usually only used in cases where prices change sharply, suddenly and unpredictably.

Is gold more stable? Don't talk nonsense. It can fall in price just as much as other speculative instruments. What's especially dangerous is that it has incredibly strong volatility. Large amplitude fluctuations during the day. It takes out stop orders in no time.

I remember the moment when I was trading gold. So, it fell in price for almost 6 months in a row. This wiped out my entire deposit, which was more than 1k dollars. This really shook me. I didn't think that such a thing could happen.