For over 15 years, since the global financial crisis, central banks worldwide have been quietly stockpiling gold. The goal has been simple: reduce dependence on the US dollar.
This steady accumulation kept gold prices rising gradually… until the Covid-19 pandemic and Trump-era tariffs sent the climb into overdrive.
And now, with reports of a 39% tariff on Swiss gold bars, one question looms large:
Is Donald Trump preparing to take on gold — the “king of safe havens”?
The Growing Tug of War Between the Dollar and Gold
Trump has never hidden his willingness to disrupt the global economy through tariffs. But gold’s role as a strategic reserve asset puts it in a different league.
The irony is striking:
The world may criticize Trump’s policies,
Yet central banks’ unified counter-move has been to accumulate even more gold.
This silent race between currency dominance and tangible reserves could reshape global financial flows.
The Dollar Has Always Had Challengers
Throughout history, several players have tried to dethrone the US dollar as the world’s reserve currency:
The Euro aimed to replace it but fell short.
China is actively pushing bilateral trade settlements in Yuan/Renminbi.
India has experimented with Rupee-Rouble oil settlements.
However, despite these challenges, the dollar has retained its supremacy — primarily due to its deep liquidity, global acceptance, and the US’s monetary power.
Gold, Bitcoin, and the New Age of Alternatives
Since Richard Nixon ended the gold standard in 1971, every country has been printing money — often recklessly. But with inflationary pressures rising, investors and central banks alike are increasingly turning to alternatives.
Today, there are two real contenders challenging the dollar’s dominance:
Gold — the time-tested safe-haven asset.
Bitcoin — the digital disruptor gaining institutional acceptance.
If Trump pushes aggressively against gold, the resulting shockwaves could alter global investment strategies, currency stability, and even trade flows.
Final Thoughts
If there’s one takeaway, it’s this: Gold remains central to global power dynamics.
At Hedge Equities, we believe in preparing portfolios to withstand volatility while capitalizing on emerging opportunities. Through our portfolio management service, we help investors navigate complex global shifts and make informed decisions in uncertain times.
