COIN MARKET INSIDER • VOLUME 33 • ISSUE 15

China Sets its Sights on the U.S. Dollar

Inflation Worries Escalate in the U.S. and the Fed Sends Mixed Signals

Is it really any wonder why tangible assets are performing well? A combination of factors are brewing that creates a set of circumstances that are tailor-made for a bull market in tangible assets…and trouble in paper assets.

When trouble is in store for the US dollar, investors need to seek the safety of physical gold investments…and anything you say for gold goes extra for rare gold coins, which offer privacy and potential performance advantages due to their scarcity and added demand from collectors in addition to investors.

China has its sights set squarely on replacing the US dollar as the world’s global currency…

Beijing has made no secret that it desires its currency, the yuan, to enjoy wider acceptance in international trade and settlements so that China can swipe at least some of the economic clout and financial stature that the USA has owned since the end of World War II due to the US dollar’s global acceptance and America’s leading economic domination.

That process has seen some success recently with the BRIC (Brazil, Russia, India, China) movement and Argentina desperately grasping for a lifeline to stay afloat as its economy and currency descends toward an abyss. More and more traders in international commerce are willing to settle their transactions in Chinese yuan, thanks variously to economic crises, backfiring Western sanctions against Russia, China’s position as a huge predatory lender in its Belt and Road Initiative, and growing concerns in some nations about being tied down to unpopular policies from Washington DC.

China still has a ways to go before the yuan replaces the dollar,
but there has never been a trend like this before or a concerted effort directed at unseating the dollar.

This is important for investors because a weakening of the US dollar contributes to inflationary pressures in the US and has historically benefited gold since gold is now priced in dollars and has always played a role as an alternative for any man-made reserve currency.

Confidence in the dollar may be eroding, but that doesn’t mean the world will trust China – there are huge reasons not to trust the regime in Beijing. Gold alone stands solid as a store of value and a trusted medium of exchange… just as it has for 5,000 years.