Moves Toward De-Dollarization
The world is moving away from the U.S. dollar, with countries increasingly seeking financial independence. Here are the key global developments:
 

• BRICS+ & Russia: After the major milestone summit, Russia is working to establish a BRICS+ precious metals exchange to become a major regulator of gold and silver prices. This exchange will allow BRICS+ nations to trade precious metals directly in their own currencies rather than the dollar. The recent doubling in size of the BRICS+ bloc reflects a concerted effort by these nations to establish economic independence from the dollar, with BRICS+ countries now holding over 20% of global gold reserves. This strategy is intended to accelerate de-dollarization and shift financial power away from Western dominance.

• China and Hong Kong: Since 2015, China has promoted the international use of its currency, the renminbi, through the Cross-Border Interbank Payment System (CIPS). This year, CIPS expanded with new participants, including HSBC Hong Kong, which enables renminbi transactions in cross-border trade. This shift aligns with nations seeking to reduce reliance on the U.S. dollar and challenges dollar dominance in global trade.

• Zimbabwe: Zimbabwe has accelerated its transition to the gold-backed ZiG currency to reduce dependence on the U.S. dollar. Initially set for 2030, this transition has been pushed up to address ongoing economic instability and reliance on the dollar, despite the IMF’s warnings about the challenges involved.

Currency Debasement Due to Inflation, Debt, and Default Risk
Currency debasement is becoming a critical concern worldwide as inflation, quantitative easing, and high debt levels threaten economic stability. Global debt has reached a record $315 trillion, with Japan and the U.S. as the largest contributors. In the U.S., national debt stands at $35.7 trillion, with a debt-to-GDP ratio of 124% and interest payments now exceeding $1 trillion annually. The fiscal deficit reached $1.83 trillion in 2024, surpassing 6% of GDP.
 
The U.S. faces a real risk of default as debt spirals, with inflation as one of the few options to manage the growing imbalance—resulting in further dollar devaluation. With diminishing confidence in the dollar, many central banks are turning to gold and silver to safeguard their economies and avoid the risks associated with dollar-dominated debts.
 
Gold’s Renewed Role in Wealth Protection
Gold remains a critical asset as countries hedge against currency devaluation. Since early 2024, gold prices have surged to record highs across all major fiat currencies, driven by geopolitical tensions, inflation, and diminishing dollar confidence. In times of economic uncertainty, gold’s stability, intrinsic value, and lack of counterparty risk make it a trusted store of wealth.
 
Protect your assets in this shifting economic landscape and reach out to a wealth specialist for a free, no obligation consultation at 610-326-2000. God bless.