submitted 3 weeks ago by Ersatz86@lemmy.world to c/personalfinance@lemmy.ml

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It seems as though the endgame to all of the political chaos we are experiencing in the US is the dethroning of the dollar as the world’s reserve currency. Putting aside for the moment the question of why or whom might benefit from such an outcome, what is the best way to play defense if your wealth is dollar-denominated?

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[-] shortwavesurfer@lemmy.zip 4 points 3 weeks ago* (last edited 3 weeks ago)

Fiat cost average into Monero and gold. I know a lot of people would say Bitcoin. But if you buy Bitcoin, then the government is going to know that you have it. Whereas if you buy Monero, the government is not going to know you have it.

Also, start participating in the Monero circular economy by buying and selling goods and services on XMRBazaar.com denominated in Monero

Here is my store, for example. https://xmrbazaar.com/user/AuroraGeneralStore/

For gold, you might want to have a look at goldbacks since they go down to one thousandth of an ounce of gold and can be used as a transactional currency.

[-] Ersatz86@lemmy.world 1 points 3 weeks ago

I don’t know why the downvote; I found your answer to be worthy of further study. On a very brief first encounter, Monero seems dauntingly complicated for a typical non-technically-oriented investor. Certainly seems to have its merits for those that do understand the finer points, but one of the oldest maxims of investing is have a full understanding of how the sausage is made.

Incidentally, for those whose assets are already well known to those in power, I think more transparent solutions might be the logical course of action.

Gold is certainly on my radar. Currently pondering the best possible avenue e.g. physical, GLD, miners, etc. and will certainly explore goldbacks. I imagine that could be a thread of its own.

Thanks for your response.

[-] shortwavesurfer@lemmy.zip 1 points 3 weeks ago* (last edited 3 weeks ago)

You definitely don't want the ETFs such as GLD or the miners because those are shares and you don't actually physically own them. So you're going to want the physical or goldbacks.

Edit: With the gold, if you don't hold it, you don't own it. With Monero, you need to have your own wallet with your private keys, because again, if you don't hold it, you don't own it.

Having anything be for benefit of means that it can be revoked as it's nothing more than an IOU with conditional redemption.

[-] dhork@lemmy.world 3 points 3 weeks ago* (last edited 3 weeks ago)

What you are really asking is whether you should hedge your US-based investments, anticipating a dramatic fall in the value of the dollar. But even if governments and large corporations start keeping reserves in Euro or other currencies, that doesn't automatically mean the dollar tanks.

You could find a fund that specifically invests in non-US companies. Take note of the fees associated with these, since they will be higher than bog-standard index funds. I wouldn't go nuts and put all your eggs there, though. Take a portion of your overall net worth to bet against America, but don't use it all. It is possible that the global economy decides that the business-friendly Trump policies have enough value to put up with all the chaos, and the dollar might even get stronger.

Always remember as a an investor, you are a small fish, in the same tank as the sharks. You will be shark food eventually. Your goal is to simply survive by not being the slowest fish in the tank.

Someone else in this thread offered Crypto as an option. It certainly seems attractive with the current regulatory environment. But make sure that you understand what you are buying if you go that route. There is a difference between an established currency with its own blockchain and governance, and some random President's shitty token which took no effort to set up and whose market can be tanked by manipulators whenever they want. If you are not interested in the difference, stay far away.

[-] Ersatz86@lemmy.world 2 points 3 weeks ago

Thoughtful and thought-provoking response.

I think we agree that the process will be a gradual one rather than a series of lightning strikes (although the rapid erosion of both hard and soft power, economic and otherwise, over the last few months is discouraging), and certainly as you point out, of the value of the dollar may not correlate with its supremacy as a reserve. Furthermore, precedent, most notably with the British pound’s dethroning as the world’s reserve currency, and subsequent resilience in spite of same, reinforces your point.

I would happily research any further specific suggestions you might have as far as hedging and diversification.

[-] Ushmel@lemmy.world 2 points 3 weeks ago* (last edited 3 weeks ago)

You can invest in foreign funds, but some of them are US currency hedged to help reduce the effect of the exchange rate(s) which will somewhat counter what you're trying to do. I don't know much about this, but keep it in mind when researching funds, especially foreign bond funds.

[-] Flagstaff@programming.dev 2 points 2 weeks ago

Bitcoin and silver are the best assets if you just wanna sit on something that's zero-maintenance.

this post was submitted on 29 Mar 2025

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