Stackers, FYI: http://moneyweek.com/moneyweek-roundup-is-this-the-end-of-the-road-for-bitcoin/ "Why gold will supplant the dollar Even as bitcoin had a grim week, Bengt Saelensminde told readers of The Right Side that he thinks the US dollar's status as "the world's de facto reserve currency" is under threat in the medium term. One sign of its decline is that, "faced with increasing currency turmoil, some emerging markets are starting to look at other options". Indeed, even Turkey and Russia, which have their own currency problems, are now piling into gold. At the same time, "more and more countries are now trading in Chinese yuan or Russian roubles". Of course, "a trading currency isn't the same thing as a reserve currency". What's the difference? "A reserve currency offers deep markets in which to invest your spoils". At the moment, "neither the rouble, nor the yuan offer a global solution for investor needs". This is because the "Chinese government isn't a borrower (at least not to the extent of the West), so there's no significant bond market to stash your yuan". For its part, "the Russian bond market is thin and still suffers dire investor sentiment following the painful 1998 default". However, "countries, or individuals, wishing to extricate themselves from the dollar reserve system" can still invest in gold, which is "a currency that fits very neatly with reserve status". The emerging world is starting to get this, which is "why they're buying". So even if gold doesn't end up as reserve currency, it could end up playing a "pivotal role" in the gradual transition away from the dollar. Overall, Bengt advises that "the safest thing to do is to become your own central bank and hold your own reserves". And the only way to do that is to hold some gold in your portfolio".
