Core Viewpoint - The article discusses the emerging challenge to the US dollar's global dominance, highlighting China's efforts to rebuild a trust system for currency using gold, marking a revolutionary shift in the concept of money [1]. Group 1: Dollar Trust Erosion - For decades, over 70% of global foreign exchange reserves were tied to dollar assets, with countries relying on US Treasury bonds to safeguard their wealth [3]. - The freezing of approximately $300 billion of Russia's foreign reserves by the US in 2022 shattered this trust, signaling that the dollar is not merely an asset but a liability of the US [3]. - This incident prompted central banks worldwide to reduce their holdings of US Treasuries and increase their gold reserves, with China emerging as the largest official gold buyer [3]. Group 2: China's Gold Corridor - China has established a "Gold Corridor" centered around the Shanghai Gold Exchange, which is the largest physical gold market globally, supported by a network of vaults in Hong Kong, the Middle East, and Africa [6]. - This system allows countries holding renminbi to directly exchange it for physical gold, effectively transforming the renminbi into a reserve currency backed by gold [6]. - The initiative aims to create a parallel financial system to the US dollar, bypassing traditional systems like SWIFT and the IMF, with a focus on BRICS nations [6]. Group 3: Future of Gold in Finance - By July 2025, gold will be recognized as a level one asset under Basel III, allowing it to be counted at 100% value on banks' balance sheets, restoring its status as a monetary asset [6]. - Central banks are pushing for gold to be classified as a "high-quality liquid asset," which would enable it to be used for collateral in repurchase financing, fundamentally altering the global financial system [6]. Group 4: Diverging Financial Systems - A clear division is emerging between two financial systems: one led by China and the BRICS, anchored in gold, and the other by the US and the West, based on digital dollars and stablecoins [9]. - This transformation is already impacting asset prices, with central banks and sovereign funds averaging 20% of their reserves in gold or equivalent physical assets, with recommendations to increase this to 30% [9]. - The anticipated increase in gold demand could reach approximately $2 trillion globally, as gold cannot be printed like dollars, suggesting a potential "structural revaluation" of gold prices in the next five years [9]. Group 5: Investment Strategies - Investment strategies are becoming clearer, with recommendations for strategic allocations in gold ETFs, cyclical assets like copper and other metals, and innovative assets such as Bitcoin [9]. - Assets denominated in renminbi, including government bonds, blue-chip stocks, and commodities, are expected to benefit from the trend of de-dollarization, becoming new safe havens as global capital exits the dollar system [9]. Group 6: Trust in Currency - Gold represents a return to "trust," while Bitcoin symbolizes "innovation in trust," together forming the dual pillars of the post-dollar era [11]. - The future may see a diversified currency landscape, with China rebuilding tangible trust through gold and the US maintaining institutional trust through technology [11].

Core Viewpoint - The article discusses the restructuring of the global financial and monetary order, emphasizing the challenges faced by the US dollar and the potential for rebalancing in dollar assets due to ongoing trade policies and the emergence of stablecoins [1][3]. Group 1: Dollar and Stablecoins - The essence of dollar stablecoins reflects the US government's effort to re-centralize emerging cryptocurrencies while tacitly allowing the decentralization of traditional dollars [3][5]. - Dollar credit is under pressure, and the stability of dollar stablecoins is uncertain, leading to a strategic outlook favoring decentralized digital currencies like Bitcoin and diversified stablecoins [6]. Group 2: Renminbi Internationalization - Future directions for the internationalization of the Renminbi include trade settlement, currency swap liquidity, offshore bond financing, and the development of offshore financial markets, particularly in Hong Kong, which is positioned as the largest offshore Renminbi market [8][9]. Group 3: Strategic Asset Allocation - The article highlights the importance of re-evaluating non-dollar assets, gold, and Bitcoin as alternative investment opportunities during periods of dollar depreciation [10]. - Tactical asset allocation for the next 3-6 months suggests a standard allocation to equities, underweighting oil and US Treasuries, while overweighting gold; for the next 6-12 months, global equities and risk assets like copper may present trend opportunities [10].

Group 1 - Bridgewater Associates, the world's largest hedge fund, has reduced its holdings in technology stocks while increasing its investment in gold, specifically through the SPDR Gold ETF (GLD), which became its largest new position in Q1 with a scale of $319 million [1] - The average purchase price for the GLD position was $259, indicating that the acquisition likely occurred between January and early February when spot gold prices ranged from $2600 to $2900 per ounce [3] - The SPDR Gold ETF saw a significant increase of 19% in Q1, reaching a year-to-date high of 28.49% by April 22 [3] Group 2 - Recent declines in international gold prices have seen a drop of nearly 10% from recent highs, although the long-term outlook for gold remains optimistic due to factors such as currency restructuring, tariff risks, and geopolitical tensions, particularly the crisis of confidence in the US dollar [3] - Deutsche Bank has noted that the US dollar is currently overvalued by more than 20% relative to purchasing power parity (PPP) for three consecutive years, indicating significant downward pressure on the dollar [4] - Goldman Sachs has revised its gold price forecast down to $3150 for the next three months but maintains a year-end target of $3600, citing ongoing global central bank gold purchases and irreversible debt monetization as key drivers [4]