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Gold, ‘Non-traditional reserve currencies’ eat into U.S. dollar’s reserve dominance: Wolf Richter

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Gold and other reserve currencies – but not the euro or renminbi – are steadily eroding the U.S. dollar’s position as the world’s preeminent reserve asset, according to Wolf Richter, analyst and publisher of Wolf Street.

“The status of the US dollar as the dominant global reserve currency has helped the US fund its twin deficits, and thereby has enabled them: the huge fiscal deficit every year and the massive trade deficit every year,” Richter wrote in an article published Monday. “The reserve currency status comes from other central banks (not the Fed) having purchased trillions of USD-denominated assets such as Treasury securities, other government securities, corporate bonds, and even stocks. The dollar status as the dominant reserve currency has been crucial for the US, and as that dominance declines ever so slowly, risks pile up ever so slowly.”

Total holdings of USD-denominated securities by other central banks (not the Fed) fell by $59 billion to $6.63 trillion at the end of 2024, from $6.69 trillion at the end of 2023,” he noted. “And the dollar’s share declined to 57.8% of total allocated exchange reserves at the end of 2024, the lowest since 1994, down by 7.3 percentage points in 10 years, as central banks have been diversifying their holdings for years to assets denominated in currencies other than the dollar, and into gold.”

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International News

The HK International Diamond, Gem & Pearl Show opens today; The HK International Jewellery Show starts Wednesday

The twin shows reinforce their position as the world’s largest one-stop jewellery marketplace

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Organised by the Hong Kong Trade Development Council (HKTDC)the 12th Hong Kong International Diamond, Gem & Pearl Show opens today and will run for five consecutive days at Asia World-Expo. The 42nd Hong Kong International Jewellery Show will be held from 4–8 March at the Hong Kong Convention and Exhibition Centre (HKCEC) in Wan Chai.

Jenny Koo, Deputy Executive Director of the HKTDC, said: “As the world’s largest one-stop jewellery marketplace, the HKTDC’s twin jewellery shows return under ‘Two Shows, Two Venues’ format, presenting an extensive spectrum of product categories. These include diamonds, gemstones and pearls, as well as showcasing the finest finished jewellery pieces, designer brands, mounting components, product packaging and identification instruments and technologies. This year, the twin shows bring together some 4,000 exhibitors from over 40 countries and regions, with 70% coming from outside Hong Kong, reinforcing the highly international nature of the events.”

International Diamond, Gem & Pearl Show showcases top-tier raw materials

The Hong Kong International Diamond, Gem & Pearl Show features more than 20 pavilions representing various countries, regions and trade organisations, such as Germany, Italy, Colombia, the United States, India, Thailand, etc. Notably, the Zhushan Turquoise Pavilion is making its debut. Zhushan County in Hubei Province of Chinese Mainland, is known as the “Hometown of Chinese Turquoise” and is one of the world’s renowned production regions for high-quality turquoise. The pavilion brings together 11 exhibitors showcasing natural treasures formed in the Qinba Mountains.

The Tanzanite Foundation, a long-time favourite among buyers, once again participates in the show. The International Colored Gemstone Association presents 37 exhibitors with a wide array of rare coloured gemstones. Cody Opal (Australia) Pty Ltd (Booth: AWE 8–E01) features Lightning Ridge black opal.

Three major product zones at the Hong Kong International Diamond, Gem & Pearl Showthe Hall of Fine DiamondsTreasures of Nature, and Treasures of Ocean—highlight materials including high-end diamonds, natural gemstones and pearls sourced from around the world. Hong Kong exhibitor Arihant Star (HK) Limited (Booth: AWE 5–C15) showcases a fancy intense pink VVS2 diamond. U.S. exhibitor Emco Gem Inc. (Booth: AWE 7–H01) presents an 11-carat cushion-cut Colombian emerald. French exhibitor Alain Boite S.A.S. (Booth: AWE 1–A20) exhibits a freshwater pearl strand measuring 14 to 15.8 mm.

This year, around 10 exhibitors are featured in the GIA Hong Kong Laboratory Limited (Booth: AWE 9, offering jewellery authentication services. GIA Hong Kong Laboratory Limited (Booth: AWE 9–M03) will launch a new coloured gemstone report that presents clearer information on a stone’s type, processing and origin, helping the industry and consumers understand the unique value of each gem.  Hong Kong Limited (Booth: AWE 7– laboratory and research institution, provides professional testing services and actively promotes H26), a leading-laboratory and research institution, provides professional testing services and actively promotes origin technologies to enhance accuracy and transparency in gemstone identification.

Exciting events to uncover market trends

Throughout the Hong Kong International Diamond, Gem & Pearl Show, multiple industry seminars, jewellery parades, networking receptions and other activities will be held. Highlights include:

DateThemeSeminar
2 March
(Monday)
DiamondsForever Forward: Igniting Desire for Natural Diamonds Representatives from De Beers analyse trends and developments in the natural diamond market from multiple perspectives.
4 March
(Wednesday)
Jewellery origin-tracing certificationSustainable Gem Practices: Provenance & Ethical Traceability from  Gem LabGübelin Gem Lab Limited, will , a gemological laboratory, will introduce integration of scientific testing and blockchain records.
5 March
(Thursday)
Turquoise from ZhushanSpecial Promotion Conference for Zhushan Turquoise  The speaker will share the process of how Zhushan Turquoise is mined and transformed into jewellery, and will explain how to appreciate the beauty of turquoise.


International Jewellery Show to shine on Wednesday

In addition to the Hong Kong International Diamond, Gem & Pearl Showthe Hong Kong International Jewellery Show will open this Wednesday and showcase a wide array of finished jewellery pieces. The fair will feature 20 group pavilions from around the world. Notably, the World Gold Council will debut the Hard Pure Gold Pavilion, bringing altogether 11 exhibitors to promote innovative gold craftsmanship from Chinese Mainland. Also making its debut is the Hong Kong Watch Manufacturers Association Pavilion, highlighting exquisite jewellery and timepiece craftsmanship.

The creative design zones, including Designer Galleria, will feature about 50 designer exhibitors. Meanwhile, the Hall of Fame has expanded by more than 40%, presenting an even broader selection of magnificent international jewellery brands.

To facilitate buyer visits to both shows, the HKTDC will arrange free shuttle bus services between Asia World-Expo and urban areas (including the HKCEC in Wan Chai). Special measures have also been continued this year to facilitate Muslim buyers visiting the shows. These include the provision of dedicated prayer rooms at both exhibition venues, providing shuttle buses to and from local mosques, as well as offering a list of Muslim-friendly hotels and restaurants.

Additionally, to enrich the sourcing experience for international buyers, the HKTDC has partnered with the Hong Kong Tourism Board and various enterprises to offer exclusive buyer privileges, including dining, air tickets, hotels and more, allowing visitors to enjoy Hong Kong’s unique charm while attending the twin jewellery shows.

Digital platform helps participants explore business opportunities around the clock

This year’s twin jewellery shows continue to adopt the Exhibition+ online and offline hybrid format. The AI-powered Click2Match will provide online business matching for exhibitors and buyers from 23 February to 13 March. Physical buyers can use Scan2Match to scan the QR codes of exhibitors, enabling them to continue discussions with exhibitors online during or after the show. Buyers can also enhance their efficiency by completing registration and buyer verification in advance through the HKTDC Marketplace App and the official websites of the two fairs.

The Hong Kong International Diamond, Gem & Pearl Show and Hong Kong International Jewellery Show have attracted some 4,000 exhibitors from more than 40 countries and regions. The Hong Kong International Diamond, Gem & Pearl Show features over 20 national, regional and industry pavilions, and three high-end product zones – the Hall of Fine DiamondsTreasures of Nature and Treasures of Ocean – to showcase top-quality diamonds, gemstones, pearls, and jewellery raw materials from around the world. Zhushan Turquoise Pavilion from Hubei Province makes its debut at the Hong Kong International Diamond, Gem & Pearl Show, showcasing high-quality turquoise with rich, vibrant colour to global buyers. German exhibitor Caram e.K. (Booth: AWE 8–F05) is showcasing a 7 carat Mozambique ruby —a particular rare find. French exhibitor Alain Boite S.A.S. (Booth: AWE 1–A20) exhibits a freshwater pearl strand measuring 14 to 15.8 mm

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