Jim Rickards urges gold buying to protect the US dollar

Economist Jim Rickards has proposed that the U.S. Treasury should purchase gold to maintain confidence in the U.S. dollar and prevent its long-term decline.

He expressed concerns that new forms of money, including cryptocurrency, could substitute the dollar if its value continues to fall.

In a recent interview, Rickards emphasised that buying gold would strengthen the dollar’s position as a global reserve currency and avoid the pitfalls of overreliance on printing money.

Rickards explained, "The Treasury buying gold would restore confidence in the dollar and perhaps make people believe again that the currency has real value."

He noted that while such a move would likely drive up the price of gold, it would send a powerful message that the U.S. is serious about honoring its financial obligations and maintaining the dollar's global status.

According to Rickards, this action would not mean a return to the gold standard but would instead demonstrate the country's commitment to stabilising its currency.

In the broader context of the dollar’s future, Rickards warned that when traditional forms of money falter, new alternatives like cryptocurrencies tend to emerge.

He highlighted that human adaptability plays a key role in the rise of new forms of money, with crypto serving as a prime example.

He stated, “Humans are incredibly adaptable when it comes to money. Witness crypto as a case in point.”

Rickards also pointed to his prediction that gold prices could surpass $27,000 by 2026, driven by central banks rushing to acquire gold amid global fiat currency instability.

His views reflect the growing concern among economists regarding the sustainability of the dollar in a high-debt environment, with the potential for alternatives like gold or crypto to gain prominence in global finance.