“Ghana’s government is working on a new policy to buy oil products with gold rather than U.S. dollar reserves, Vice-President Mahamudu Bawumia said on Facebook on Thursday.

The move is meant to tackle dwindling foreign currency reserves coupled with demand for dollars by oil importers, which is weakening the local cedi and increasing living costs.”

Analyst Comment: Two things are notable here: First, nations view gold as a viable currency. With the rise of cryptocurrencies, many have advanced the notion that if existing currencies collapse, people will not use gold as an alternative. This is more evidence that gold remains valued, at least at the international level.

Second, as more countries trade in alternative currencies or precious metals, instead of US dollars, demand for dollars will decrease. This is a trend that will play out over years, if not decades, but without robust global demand for dollars, the US will struggle to finance our national debt in the future, which puts America on the path to insolvency and probably a hyper-inflationary collapse, as politicians will try to print their way out of insolvency.