The End Of Dollar Dominance Means The Empowerment Of Those Nations That Own Gold

“With all the sovereign gold stacking and gold repatriations, even within these United States, it sure looks like that bitter end…”

By now every sovereign nation on the planet is familiar with this graph:

We often talk about the shift from West to East.

We’ve been talking about the shift from West to East in light of the last few decades or so of actions taken by Eastern nations.

As shown in the chart above, the world’s reserve currency has been a product of the West for the last six hundred years, so it’s quite understandable that the shift has been decades in the making.

We have also been discussing the fact that various nations around the world have been repatriating their gold at an increased pace.

There is the infamous German gold repatriation, and even nations such as Turkey and Venezuela have repatriated gold.

Taking it one step further, not even states within the United States necessarily trust the Fed or the US government to hold their gold, as in the case of Texas, which recently opened up it’s own state bullion depository.

Claudio Grass, staunch advocate for gold and for sound money, shines light on what all of this gold repatriation means (from RT):

The world is facing a currency war and the only hedge against the crash of the US dollar is real gold, a precious metal analyst has told RT. With geopolitical power shifting from West to East, US dominance may be ending.

One such sign is the recent repatriation of gold from the United States. Countries such as Turkey, Germany, the Netherlands have been moving the bullions home. The reason is the Cold War is over and countries don’t see Russia as a threat anymore, says Claudio Grass, an independent precious metals advisor and Mises Ambassador.

“Central banks moved their gold because they felt threatened by the USSR and saw the USA as their natural ally. The fact that central banks are repatriating their gold shows that this has changed. It also implies that they don’t see Russia as a bigger threat than the USA any longer. Europe stands in the center of this geopolitical power shift and some countries obviously believe it’s wise to store the gold in their home countries,” he told RT.

The world has been living in crisis since 2008, while a currency war started even earlier, notes Grass. Central banks have been printing trillions of dollars out of thin air, while central banks are coordinating the debasing of currencies and pouring money into all kinds of financial assets, real estate and bonds.

“Nonetheless, it is obvious that the systematic problems are not solved, on the contrary, the risks became bigger and more fragile than a decade ago,” said Grass. “As you know more than 65 percent of all monetary reserves in the central banking system are held in the world currency reserve, which still is the USD. Therefore, holding physical gold is definitely the best hedge against a crash of any paper currency, and therefore also against a crash of the USD.”

And it’s not only the repatriation of gold.

We’ve shown this chart before from the World Gold Council:

China and Russia are actively accumulating physical gold bullion.

Other nations are accumulating gold as well, just not Western nations.

Western nations are content with pushing the paper paradigm and pushing the debt-based fiat dollar until the bitter end.

With all the sovereign gold stacking and gold repatriations, even within these United States, it sure looks like that bitter end gets closer with every passing day.

And we’re about to find out who is empowered.

Stack accordingly…

– Half Dollar


About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at Paul’s Twitter is @Paul_Eberhart.