💰 Dollar war and tethered gold: Who has confidence in the global financial system?

Since US President Richard Nixon announced in 1971 that the dollar would no longer be pegged to gold, everything has changed.
The dollar was transformed from a "gold-covered paper" into a symbol of American power, a financial weapon used to manage the international system and control the paths of global confidence.

In the decades that followed, Washington solidified the dollar's dominance through agreements such as the Petrodollar in 1974, which tied the global pricing of oil to the US currency. Since then, every financial crisis or war has been a test of whether the dollar remains the master of the game.

But this dominance has not come without cost. When Washington uses the dollar as a weapon-as in the freezing of $300 billion of Russian reserves in 2022-countries start looking for "safe exits," and gold returns to the forefront as a sovereign shield against sanctions.

Today, the United States has the largest official gold reserves (8,133 tons), but it is no longer the only player.
China has doubled its reserves to more than 2,200 tons, Russia has surpassed 2,300 tons, while global central bank purchases of gold in 2022 rose to a record 1,136 tons-the highest since the 1950s.

Europe, which sold much of its gold in the 1990s, brought thousands of tons back home after the 2008 crisis, realizing that gold is not just a metal but a guarantee of sovereignty and financial stability.

In contrast, the dollar's share of global reserves is declining from 78% in 2000 to about 58% in 2022, reflecting the beginning of a slow shift towards a multipolar monetary system, led by powers such as China, Russia, and India, as the BRICS alliance seeks to create a gold-backed currency or a basket of commodities.

The study shows that gold is no longer just a financial asset, but a political and strategic tool that reshapes the balance of power in a world where trust in institutions and banks is shaken.
Gold does not follow anyone, but watches everyone from afar, as the truest mirror of the balance of trust between nations.


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