mplaut

Forex: Why the Dollar Is Staying Strong

Costard wrote:

" and wealth will resume its transition towards a medium that retains its value. Jury's out on what this will be... my guess is scarcer commodities, gold for its value or oil for its utility. "

The problem is that neither gold nor oil has the sheer scale that is necessary to store the value that is residing in dollars.

There is no single thing, not a commodity nor a currency, that is large enough to even seriously compete with the dollar. What we can have is just a general move towards more "risky" assets like equities, bonds, commodities, etc. But this will probably happen later rather than sooner.