USD Supremacy vs Gold’s Timeless Value – Which Asset Preserves Wealth Better?
Published on HivePostify by @mintymile · Mon May 11 2026
https://img.leopedia.io/DQmWpCMdQVb4iBsKPM3pss12JWF72hhQYnpD6JRRFUR5sJj/goldVSUSDbanner.png Gold Prominence increases when USD value is stressed . Image generated using [ChatGPT]( https://chatgpt.com/)
Visible Gold accumulation buzz since 2022
Major Countries seem to have turned into Gold bugs for although they may not advocate for gold vocally, like Gold Bug Peter Schiff– their Central Bank policy actions do. Since 2022 triggered by Russia’s invasion of Ukraine – Central Banks all over the World began purchasing Gold.
Between 2022 – 2026, China purchased 2,298 tons of Gold, Russia 1336 tons of Gold, India 880 tons of Gold besides other countries.
[Massive Gold purchases]( https://www.deccanherald.com/world/why-countries-are-stocking-up-on-gold-2-3987642) from Country Central Banks drove the Bull Run of Gold with Gold’s price rising from 1672$ around Oct 2023 hitting a high of 5,603$ in Jan 2026.
Gold’s established status as a Top Tier Safe Haven Asset
https://img.leopedia.io/DQmWZWJcMKLHXUgdkR8oyDpVEh5kSuATzyYshzBVte3izf7/safehavenclub.jpg Gold’s always ranked at the top in the Safe Haven Category of Assets. [Source](https://ecency.com/hive-104024/@mintymile/bitcoins-safe-haven-era-digital-gold-risky-dances-and-wealth-protection-fun-bdn)
Those following the financial Pulse of Global Markets – know Gold’s a Safe Haven asset, where investors swap their dollar fiat holdings to Gold to preserve their wealth.
Gold’s a Supreme Safe Haven Asset that wealth flows to when Dollar is weak.
https://img.leopedia.io/DQmWZWJcMKLHXUgdkR8oyDpVEh5kSuATzyYshzBVte3izf7/safehavenclub.jpg Wealth flows into alternate Safe Haven assets when Dollar is weak.[Source](https://ecency.com/hive-104024/@mintymile/bitcoins-safe-haven-era-digital-gold-risky-dances-and-wealth-protection-fun-bdn)
Dollar is primary Safe Haven Asset – however it weakens in periods of Geo-political tensions, Financial Crisis, during periods of inflation. Here weakness means holder’s wealth erodes because dollar depreciates.
https://img.leopedia.io/DQmRbuBjPepSosL2EsUZgA5Wv5XDywXtgZWcC3wa3MFPa3G/geopolitical.jpg Periods of Geo-political tensions has wealth flow from Dollar to Safe haven asset Gold. [Source](https://www.publish0x.com/buzzing-news-and-stories-of-interest/trump-s-liberation-day-tariffs-will-markets-sink-as-investor-xvzkqox)
This has been a simple understanding of why and when Gold as an asset becomes attractive, however, there is more to this and my article aims to explain these interlinked dynamics – that determine time-periods when Gold shines as an investment asset.
USD Wealth growth Avenues with USD Derivatives earning yields
Gold matures in seasons of economic turbulence mentioned above.
A balanced US financial system are times where inflation stays controlled within limits of 2% intended by US FED. At these times of stable inflation – wealth stays in USD with risk perception of value erosion of USD being low.
In these periods even if economy experiences recession – USD is considered reliable enough to shift wealth into from risk-off assets (stocks, crypto etc).
USD wealth has a default avenue to grow even during phases of economic uncertainty or recessionary periods with Treasury assets; USD derivatives.
Treasury assets – US02 Year Bonds, US10 Yr Bonds.
These are traditionally considered safe investment avenues as Bonds are a debt instrument – with promise of US Government on guaranteed payment of principle amount, while bonds additionally earn yields.
Investors prefer holding Bonds for these yields.
When real yields don’t outpace inflation, wealth shifts to Gold
Gold earns no yields, but it has worked as a safe haven asset when US 10 Year yields don’t profit investors with earnings after accounting for inflation. These are periods when inflation is high and investing in bonds in spite the yields don’t preserve a investors wealth holdings.
Since, Gold is a Safe Haven asset – it is mostly brought during uncertain times, and sold off when USD strength revives maintaining stable value. This is why there are long periods of time when the shiny yellow metal is lackluster in its price action.
https://img.leopedia.io/DQmWpCMdQVb4iBsKPM3pss12JWF72hhQYnpD6JRRFUR5sJj/goldVSUSDbanner.png Situations where wealth stays in USD and bonds and factors that take it into Gold.
In current times, Gold is considered a safer Safe Haven than Dollar which is why Central Banks Globally are diversifying their foreign exchange reserves – swapping their reserves of USD for Gold.
https://img.leopedia.io/DQmVo7UMwLbePVhZPcJrtRrsyHhhgCyAN4Tp9R5FmCoX8XP/swapgold.jpg Wealth swap USD to GOLD in uncertain times. [Source](https://ecency.com/hive-104024/@mintymile/bitcoins-safe-haven-era-digital-gold-risky-dances-and-wealth-protection-fun-bdn)
Practical problems experienced by Countries holding value in form of USD Reserves
There is a visible trend of [De-dollarization](https://www.idnfinancials.com/news/63107/why-are-brics-countries-buying-so-much-gold). The Dollar’s share in foreign exchange reserves has declined from 71% in 1999 to 57% now.
Some Core reasons for this is -:
1. Dollar is not a sovereign financial instrument, it is issued by US FED, and institutions have the power to freeze USD foreign exchange holdings of other countries.
USA sanctions on Iran has 100$ billion of Iran’s USD funds frozen since 1979. Sanctions on Russia after 2022 have immobilized 300$ USD reserves of Russia. Gold on the other hand cannot be frozen – it’s held value can be utilized converting it to fiat when required.
2. USD is linked to debt, liabilities of the US Government in form US Bonds.
In recent times – USA’s debt to revenue ratio is large with revenues not sufficient to fund Government expenditure.
Currently [US Government Debt](https://fiscaldata.treasury.gov/americas-finance-guide/government-revenue/) is $39.1 trillion while revenues from taxes is $5.23 trillion. Annual deficit funding is 1.78$, a huge gap of funding expenditure in excess of revenue earned.
Servicing of Debt too has cost of 1.16$ Trillian.
With USD linked to unsustainable growing amount of Debt, should US Govt. default on payment of bond yields – there is risk of USD devaluation.
Gold on the other hand has no risk of devaluing since its value is not linked to any debt.
Currencies backed by Gold coming in fashion!
This is why a major Trade Block Alliance [Brics](https://geopoliticaleconomy.com/2025/01/19/brics-expands-population-nigeria-africa/#::text=The%20three%20most%20populous%20countries,54.6%25%20of%20the%20global%20population) comprising Brazil, Russia, India, China, South Africa. Eqypt, Ethiopia, Iran, United Arab Emirates have been planning for alternative currency to trade between themselves.
One of the planned frameworks of creating this alternate currency – was through backing its value with 40% of Gold and 60% with currency basket of member countries.
This is significant because [Brics](https://brics.br/en/news/brics-gdp-outperforms-global-average-accounts-for-40-of-world-economy#::text=Proportion,the%20size%20of%20its%20population) constitute more than 50% of world’s population and have a 40% share in Global GDP.
Gold looks to be an important constituent to make alternate currencies in future.
Mapping Gold’s Historical Price Action to economic factors at play!
Let’s examine Gold’s Historic Price Movements associating it with factors that influenced Gold’s Price Action.
https://img.leopedia.io/DQmTEo2H57Z6BgkhamWb8EtkCFMXWpDu6gkY1LwfuL2Bzzd/XAUUSD2026-05-0608-59-34.png Gold’s Price Action from 1971 to Now. [Tradingview Chart>>](https://www.tradingview.com/x/q4jEHGqy/)
These factors are generally – inflation, USD strength and yields from 10 Yr Bonds.
1971-1980
USD becomes a fiat currency delinked from Gold by 1971 with abolition of Gold Standard. Post this, a new era begins where USD value is influenced by US Fed Fiscal and monetary policy actions.
In others words trust in USD depended on trust on US FED managed financial system. Before this USD value was backed by Gold.
Tags: #hive-150329#gold#usd#finance#economy#inflation#cent#gems#meme#indiaunited