The USD has been the world's dominant reserve currency for decades, but cracks are showing—much like what happened to previous empires.
History tells us these shifts happen gradually, driven by debt, inflation, and rivals stepping up. Here's a smoother rundown of the key evidence right now, and why it matters for us stackers Down Under.
First, the US national debt is exploding. As of early January 2026, it's sitting at around $38.43 trillion, up $2.25 trillion from just a year ago—that's roughly $8 billion added every single day. This level of borrowing echoes the overreach that weakened past reserve currencies like the British pound after the world wars.Second, global confidence is slipping.
The USD's share of world central bank reserves has fallen to about 57% (down from over 70% in the late 1990s), the lowest since the mid-1990s. Countries are quietly diversifying—more yuan, euros, and especially hard assets.
That's where gold comes in: Central banks are buying aggressively. They scooped up 297 tonnes in the first 11 months of 2025 alone, with strong momentum carrying into 2026. "This isn't speculation"—it's strategic hedging against fiat risks, and it supports the whole precious metals space, including silver.
For us in Australia, the USD's wobbles often mean upside for silver in AUD terms. Spot silver is hovering around $150–160 AUD per ounce right now (with some volatility), while gold has pushed past $5,250 USD/oz and keeps climbing.
As the greenback faces pressure from debt and de-dollarization, silver's industrial demand plus its monetary appeal could see solid gains—perfect for hedging inflation and currency shifts here at home.
The USD isn't vanishing overnight, but these trends are real and accelerating. Stacking more physical silver (or gold) is one of the smartest ways to protect wealth when fiat systems show strain.
Cheers H