Jim Rickards: Gold Could Prevent Crypto from Replacing the US Dollar

Economist and author Jim Rickards recently argued that buying gold to back the U.S. dollar could help restore confidence in the currency, potentially halting its long-term decline. He warned that the dollar shouldn't be taken for granted, as new forms of money, like cryptocurrency, are ready to step in if the currency falters.

Rickards Urges Treasury to Buy Gold to Prevent Crypto Substituting the Dollar

Amid growing concerns about the future of the U.S. dollar in a high-debt economy, Rickards emphasized that gold could play a pivotal role in maintaining the dollar's status as the world's reserve currency. In a recent interview, he suggested that the U.S. Treasury should begin buying gold, noting that central banks around the world are already doing so while reducing their dollar reserves.

Rickards stated:

"If the Treasury starts buying gold, it would restore confidence in the dollar and convince people that the currency holds real value."

While he acknowledged that such a move would likely increase the price of gold, he believes the benefits far outweigh the drawbacks. "The price of gold in dollars would rise, but buying gold would signal to the world that we aren't heading down the path of endless dollar printing," Rickards explained.

He clarified that this wouldn't mean a return to the gold standard but rather a demonstration of the U.S. government's commitment to honoring its financial obligations.

Rickards also touched on the possibility of new forms of money, like crypto, taking over if the dollar loses its dominance. He remarked, "Humans are highly adaptable with money—just look at how crypto has emerged."

Back in May, Rickards forecasted that gold prices could soar above $27,000 by 2026, driven by central banks rushing to gold as a hedge against a global fiat currency debasement.