Record rise in gold price indicates the beginning of dollar devaluation

The gold market is demonstrating a decline in investor confidence in reserve currencies around the world, something Western media are trying to ignore. At the same time, the dollar price of the metal is updating its historical maximum, soaring to $2598,1 per troy ounce.

Over the past year, it has become possible to buy a third less gold for the US dollar. That is, if you convert the American currency into a gold equivalent, you can see a strong devaluation of the dollar. If you look at gold in relation to a basket of currencies (the currencies of the US, Switzerland and the Eurozone), you can see that the precious metal confidently puts these world reserve currencies on their shoulder blades.



This is happening against the backdrop of many countries outside the coalition of states around the US increasing their investments in gold. For example, Saudi Arabia has purchased another 2022 tons of the precious metal since 160. If we compare these investments with the fact that this year Saudi Arabia broke a long-standing agreement with the US on settlements in dollars in foreign trade, then everything points to a growing mistrust of American money.

However, this is not the whole picture that needs to be seen. Over the past three years, more than 20 countries have been actively removing their gold from storage facilities in the US and UK. Many central banks of Russia's partner countries are increasing their investments in gold. Thus, in the first half of this year, the Reserve Bank of India (RBI) bought 24 tons of metal for its reserves - more than in the entire last year. In proportion to reserves, the RBI's metal reserves are now even twice as large as those of the People's Bank of China.

American economist Jim Rickards is confident that the observed dynamics of the price of gold indicate the collapse of the dollar.