Wealthy Investors Are Fleeing the US Dollar—Into These Hedge Assets

Juhi Mirza
investors ditching USD for gold and BTC
Source: Watcher.Guru

The US dollar has now become a bone of contention for the world to deal with. A literal economic ticking bomb, the world has now become wary of the dollar’s constant decline and is now moving towards other potential assets that could help it gain long-term stability. With Trump’s growing tariff orders, the US dollar is constantly showing signs of volatility, compelling the world to reduce its reliance on the premium “reserve asset.” As the world moves away from the dollar, here are five notable hedge assets gaining widespread momentum amid the rising dollar health decline.

Also Read: US Dollar Future Value Set to Hit 102.40 Within 12 Months

Top Four Hedge Assets the World Is Keenly Exploring Now

1. Gold

Gold price prediction $4000
Source: Watcher.Guru

Gold has now become one of the leading metals, gaining widespread momentum as the US dollar falls to new lows. Gold is now breaking records, setting its eyes on the $4000 price mark as rising geopolitical tensions continue to rattle the US dollar. According to Kitco, the central banks have also been purchasing record holdings of gold, with sovereign wealth funds officially joining the gold purchasing spree actively.

“The State Oil Fund of Azerbaijan’s second quarter report shows its gold reserves rose by 16 tonnes in Q2. This lifts its total H1 net purchases to 35 tonnes. And total gold holdings to 181 tonnes (almost 29% of total portfolio).” Krishan Gopaul of EMEA shared.

2. Cryptocurrencies like Bitcoin and Ethereum

Bitcoin and Ethereum physical coins against price chart background
Source: DigitalX

As the US dollar falls to new lows, BTC and ETH have been rising steadily, emerging as strong asset contenders replacing the USD. A new Santiment ETH report outlines how it is gaining rapid traction as of late. Moreover, the US government continues to back both the tokens in a major digital asset push, driving their values up a notch.

3. Commodities

Iran Sanctions & China's 90% US Oil Cut
Source: Watcher Guru

Investors have also been noted to be flocking towards the active commodities arena. Resources such as copper, oil, natural gas, and agricultural products have been noting a steady rise in momentum. Their ETFs have also followed this trend.

4. Emerging Currencies

Eurp vs Dollar
Source: Watcher.Guru

As per Reuters, investors are now pivoting towards other currencies such as the euro, Swiss franc, and Japanese yen to safeguard their interests rapidly. As the US dollar continues to note rapid decline, these currencies have started to document consistent spikes in their investments, as forex investors continue to bet against these USD competitors to steady their profit streams despite crackling market pressure.

Also Read: The UK Just Sent a Warning About the US Dollar