Will Gold Replace US Dollar In 2020?

Will Gold Replace US Dollar In 2020? Dr. F.T. Dao for Gold-Eagle

Gold versus Currency

Recently there is a hot topic: When will gold bullion replace US dollar as the major reserve currency?  Will the replacement be realized in 2020?  Given the printing press and the global turmoil with Covid-19 pandemic and warring factions including the Indo-China border and the Korean peninsula troubles, the decreasing role of the US dollar is a matter of time.

In this article we study the role of gold bullion and fiat currencies from a historical perspective.

Gold Rules as Supreme Disciplinarian

Chart 1 – Gold Price in Various Currencies:  2001 – 2019

From the above chart, we noted that very soon gold will emerge another historical height in values in various fiat currencies.  This is Nature’s way of correcting the unceasing printing of currencies, with no solid economic background.  The following section, we demonstrated the broad trend from history.

Learning from History

We showed following two charts with centuries of monetary data showing deep depreciation of all monetary fiat currencies again gold.

Chart 2 – History of Depreciation of Currencies Relative to Gold

1900 – 2017

The above chart showed one depreciation after another when the currency does not match the economic growth.

History of US Dollar Relative to Gold

US quickly emerged as a dominant economic power since World War I.  However there are hiccups along US history as shown in the following chart.  The most notable event is in 1971 when US took the US dollar off the gold standard.                   

Chart 3 – History of Depreciation of US Dollar Relative to Gold

1790 – 2019

It is reasonable to argue that given the expanding global commerce and trade, the old gold standard format needs to be modified as proposed by a few analysts.  It is inevitable that gold be a major part of the new monetary standard in the coming reset in the 2024 time frame.

Important Signal from Silver Price

We believe an important signal as to the timing of gold emerging as a major component of global reserve currency comes from the rising price of silver.  In our earlier articles, we have discussed the Gold-to-Silver Ratio (GSR) and that Silver will also emerge with gold as a safe-haven asset and a de-facto monetary unit.  The following chart reinforces the important role of Silver.

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The Daily Coin

Rory Hall, The Daily Coin and Gospel News Network. Beginning in 1987 Rory has written over 1,400 articles and produced more than 500 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Gold Seek, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Dr. Warren Coates and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Gospel News Network to enjoy some of the best economic, precious metals, geopolitical and preparedness news from around the world.