Semafopr/Liz Hoffman/5-23-2023
“That’s why when people ask whether the dollar is going to lose its reserve currency status, I think that’s dubious. But we keep chipping away at the impenetrable armor of the dollar. Yuan is being used more, euros, there is a part of the market that looks at crypto as an alternative. I’ve been watching gold have a good run [up 8% this year].”
USAGOLD note: In times like these, the dollar would be dominant in the flight to quality, says Rieder, “but after sanctions and the dynamic around deglobalization [post-pandemic], international investors are inclined to diversify.” We would add fears of US government default to that list even if things change for the better. Gold has been one of the key beneficiaries of the diversification Rieder mentions.