Gold Could Avoid Cryptocurrency Replacing the US Dollar
Renowned economist Jim Rickards explains that buying gold to support the dollar will restore confidence in the currency, avoiding a long-term decline. He claims that the currency should not be taken for granted, as new forms of currency such as cryptocurrencies will replace it when old currencies fail.
Jim Rickards: Treasury should buy gold to avoid the dollar being replaced by new forms of currency like cryptocurrencies
The longevity and staying power of the US dollar is starting to worry economists amid high debt and high issuance. Renowned economist and best-selling author Jim Rickards has highlighted the role gold can play in helping the greenback maintain its current status as the world's currency.
In a recent interview, Rickards explained that the US Treasury should start buying gold to avoid a long-term currency decline as central banks rush into gold and sell off their dollar reserves.
He stated:
The Treasury's purchase of gold would restore confidence in the dollar and perhaps make people believe again that the currency has real value.
This would also boost the dollar price of gold, but Rickards believes the upside would far outweigh the downside of such a move. “The dollar price of gold would obviously go up, but buying gold would be a statement to the world that we are not just going down the rabbit hole of printing dollars,” he stressed.
Rickards explained that this did not mean the United States should return to the gold standard, but it would send a message that the country still intended to honor its obligations.
Furthermore, when talking about the possibility of replacing the dollar, Rickards detailed that when old money fails, new forms of money will emerge, highlighting the case for cryptocurrencies. “Humans are incredibly adaptable when it comes to money. Look at cryptocurrencies as a prime example,” he concluded.
In May, Rickards predicted gold prices would surpass $27,000 by 2026, bolstering his prediction as central banks flock to gold amid a global fiat currency devaluation.
What do you think about Jim Rickard's statement on the US dollar and gold? Let us know in the comments below.
