alt Hacker NewsI don't quite follow. Countries hold gold to protect their own currency from devaluation, not bc they expected it to become stronger against a dollar.
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_ache_ • yesterday at 8:14 PM
If you have USD and you think it will value less soon, you change it to gold instead. If you own gold in the US and think that the USD value will drop very low, you move out of the USD fearing gold retention.
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scotty79 • yesterday at 8:05 PM
If you sell something in US, you get paid in US dollars. If you believe dollars soon won't be worth the paper they are printed on, you immediately spend dollars on something that has durable value and take it with you instead.
How does holding gold protect from devaluation? No one has currency backed by gold any more.