The US national debt is over $34 trillion, and it is growing rapidly. One of the largest government expenses is interest payments on debt. It has gotten to the point where it is starting to look very unlikely that the government will ever see a decrease in debt.
The purchasing power that the US dollar had just a while ago no longer exists. It is much weaker compared to many major currencies, and global sentiment towards it recently, hasn’t been great.
Looking at the gold price chart, you can see that after the gold crash we did start to slowly regain, and the last few days we have seen very strong price action from gold. This is indicating that even if gold was overbought just a while ago, investors are still interested in buying the asset. Usually when gold prices are going up, the opposite happens for the dollar. So, if gold is starting to rally now, even after the dollar has barely regained strength, we are looking at a possible second crash and we will more than likely see levels that have not been seen since 2018.
This might seem farfetched, and it could be, until you look at the political instability that we have seen coming out of the USA. Every country experiences corruption and controversy, but unfortunately for the US dollar, its government seems to be the centre of attention at all times. When big headlines break in the USA, they break the world’s headlines. This is why BRICS has been looking at a way to diversify safe haven currencies so that the dollar is not the only one investors turn to.
This is a very small possibility, but it is still a possibility nonetheless. But as time goes on, it does seem to slowly get more possible. This is just because of all the de-dollarization efforts of other countries. The efforts are not making quick damages, but in the long run it will definitely play a big part in why the dollar could crash and no longer play such a huge role.
For safety precautions, moving your money to gold will be a good idea, opposed to keeping it in dollar, and like we just talked about, investors are already doing so because of the risks that we are seeing in the dollar. Moving it to gold is not a quick move for some profits or hope that they can leverage their wealth, but rather a long term play for sustainability.
(Just my opinion, not financial advice)