Jim Rickards: Treasury Should Buy Gold to Avoid Dollar Substitution by New Forms of Money Like Crypto

The longevity and staying power of the U.S. dollar is starting to worry economists in a high-debt, high issuance scenario.

Economist Jim Rickards believes that the U.S. Treasury should buy gold to restore confidence in the dollar and prevent its long-term decline. He explained that as central banks around the world lose trust in the dollar due to excessive printing and high debt, they will turn to gold, leading to a decrease in dollar reserves.

According to Rickards, buying gold would signal to the world that the U.S. is not planning to continue printing large amounts of dollars, which would help bolster confidence in the currency. He stated that this move would increase the price of gold in dollars, but the benefits would outweigh the drawbacks.

“The price of gold in dollars would obviously go up, but what this would do is announce to the world that we are not just going to go down the print-the-dollar rabbit hole,” Rickards said. “This would be a statement that we intend to honor our obligations.”

He emphasized that this does not imply a return to the gold standard, but rather a message indicating the intention to fulfill commitments.

Regarding the potential substitution of the dollar, Rickards highlighted the adaptability of humans in creating new forms of money when old ones fail, citing cryptocurrencies as an example. He stated that if the dollar were to lose its status, crypto might step in to fill the void.

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