America’s empire in danger
The rise in gold and silver prices in the past few days is not normal. The way prices are increasing every day in the market is not merely the result of demand or speculation. Behind this is a turn in the global economy, which can have a deep impact on the pockets of all of us in the future. This is a sign of a big change, which economic experts are calling ‘De-Dollarization’. In simple words, the world is now trying to free itself from the attachment of the US dollar. If this trend continues, America’s superpower image, which was based on the strength of the dollar for decades, may be tarnished forever.
Why did the distance from the dollar start?
The roots of this entire story are hidden in America’s debt policy and global trust. Till now, countries of the world considered America safe and invested their money in ‘US Bonds’ (American government bonds). It was believed that America could never sink and money would be safe there. But now this trust is wavering. Big countries like India and China have now started withdrawing their money from America.
Statistics are testifying to this change. In November 2024, India had American bonds worth about Rs 21 lakh 52 thousand crores. But, within just one year, by November 2025, India sold bonds worth Rs 4 lakh 36 thousand crore. That means India reduced its share in American debt by more than 20 percent. Same is the situation with China, which has sold bonds worth about Rs 8 lakh crore in one year. Countries like Brazil and Ireland are also on the same path. The question is, what is happening to the money (dollars) that we are getting back by selling bonds? The answer is gold.
Gold increasing in foreign exchange reserves
Central banks around the world are now relying on solid gold instead of dollar paper pieces. The money received from selling bonds is being used to buy gold on a large scale. The share of gold in India’s foreign exchange reserves has historically increased to beyond 15 percent. Between 2021 and 2025, India has purchased 1 lakh 26 thousand kilograms of gold. China has adopted an even more aggressive stance and has deposited more than 3.5 lakh kilograms of gold in its treasury in four years.
An incident that happened during the Russia-Ukraine war is also responsible for this change. When America froze (confiscated) Russia’s dollar reserves, the whole world understood that the dollar was no longer ‘safe’. America can use its currency as a weapon at any time. But no one can freeze gold. This is the reason that in times of uncertainty, every country wants to keep gold in its house, so that it does not have to be dependent on anyone in difficult times.
America’s supremacy in danger
The falling credibility of the dollar has given America sleepless nights. The value of the dollar has declined by 11 percent in the last one year and is at its lowest level in four years. This is a big blow for President Donald Trump, who talks about ‘America First’. Trump has already warned that strict sanctions will be imposed on countries that trade in currencies other than the dollar. He considers it a conspiracy against America’s interests.
If we look at history, after the Second World War, the dollar got the status of global currency under the Bretton Woods Agreement in 1944. Till 1971, there was a guarantee of giving gold in exchange for dollars, but later America abolished it and made the whole world dependent on dollars. At one time 80 percent of world trade was done in dollars, which has now come down to 54 percent. BRICS countries trading in their own currency and China’s promotion of Yuan are alarm bells for America.
What does this mean for the common man?
The direct impact of this geopolitical conflict is visible on the price of gold. When the world’s big banks buy gold, demand will increase and prices will skyrocket. Investors are also now trusting gold more than the stock market or the dollar. If this process of ‘De-Dollarization’ accelerates, then the rules of global trade may change in the coming time, due to which huge upheavals may be seen in the prices of petrol and diesel and imported goods.