In gold we trust

For the first time since 1996, foreign central banks now hold more gold than U.S. Treasuries.
This is not only a story about gold — it reflects waning confidence in U.S. sovereign debt. The U.S. faces persistent twin deficits (budget and current account), rising debt levels, and questions about long-term fiscal discipline.

While the de-dollarization trend is strengthening, we should not underestimate the enduring role of the USD as the world’s leading trade and reserve currency.