Nassim Taleb, the author of “The Black Swan,” claims the US dollar is no longer the world’s top reserve currency. He believes gold has taken its place.
The Dollar’s Downfall?
Taleb, in a recent Bloomberg interview, argued that the dollar’s reliability as a safe haven is crumbling. He pointed to people’s preference for stock market investments over a currency that’s losing value. He also cited US sanctions against Russia as a key turning point. These sanctions, he says, showed the world the dollar could be weaponized.
Gold’s Rise
According to Taleb, this weaponization damaged the dollar’s credibility. He highlighted the increasing gold reserves held by countries as evidence of this shift. He explained that while transactions still happen in dollars, they’re often quickly converted back into gold. This, he claims, shows gold’s new status as the de facto reserve currency. He even noted that this trend started before recent events, accelerating with the freezing of Russian accounts. This led other countries to seek alternatives to the dollar and euro, boosting gold’s appeal.
