Frank Holmes: Forget U.S. Dollar, Gold Is The Global Reserve Currency

Trade competitors to the U.S., like Russia and China, have been regularly stock piling gold to hedge against the unpredictability of U.S. “Every month, Russia continues to accumulate gold, just like China. Why is that? 

Because there’s a real movement, that’s very slow and gradual, not to trust the U.S. dollar,” Holmes told Kitco News. 

Holmes noted that with global trade under fire from protectionist policies, the U.S. dollar can no longer be depended upon by other major economies as a safe haven. “This thing on tariffs that Trump has been escalating now, has slowly been creeping for the last 18 years. 

It’s interesting that the Renminbi wants to be a reputable trading currency, well, countries want gold as a backdrop as a guarantee against the Renminbi,” he said.

- Source, Kitco News