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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

Signet The Biggest-Grossing Jeweller In North America By Far In 2025

Luxury Groups, Specialist Watch Retailers, and Branded Jewellery Players Are Steadily Gaining Ground Against Traditional Mass-Market and Department-Store Operators

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National Jeweler’s latest State of the Majors report highlights a shifting leaderboard among North America’s “$100M supersellers,” which grew from 36 to 37 qualifying retailers in 2025. While Signet Group comfortably defended its first-place crown—generating $6.36 billion across 2,329 stores—the rest of the top ten saw major disruption. Signet’s total watch and jewelry sales for the year were $6.36 billion according to the report and had 2,329 outlets. Second-placed Richemont, the Swiss luxury conglomerate, sold  $3.62 billion, with just 105 locations selling watches and jewlery.             

One of the report’s most notable developments was the rise of Richemont to the No. 2 position, overtaking several larger-format retailers. The Swiss luxury conglomerate, owner of prestigious maisons including Cartier and Van Cleef & Arpels, reported $3.62 billion in watch and jewellery sales through only 105 locations. The performance illustrates the outsized revenue-generating power of luxury retail, with Richemont achieving high productivity per store compared with mass-market competitors.

The reshuffling pushed Walmart down to fourth place, signaling a broader shift in consumer spending toward premium and luxury jewellery categories. Meanwhile, warehouse retailer Costco advanced to No. 5, continuing to strengthen its position in fine jewellery through value-led offerings and member-driven purchasing.

Jewellery brand Pandora also climbed one rank to secure the No. 7 spot, reflecting sustained demand for branded jewellery collections and accessible luxury products. In contrast, luxury powerhouse LVMH slipped to No. 6, while longstanding department store chain Macy’s moved down to eighth place, highlighting increased competitive pressures within traditional retail channels.

Another significant change came at the lower end of the top ten, where Watches of Switzerland Group entered the rankings at No. 10, marking growing momentum for specialist luxury watch retail in North America. Its entry displaced Bucherer to No. 11, emphasizing the increasingly competitive nature of premium watch distribution.

The report points to a broader transformation in North America’s jewellery retail hierarchy, where luxury groups, specialist watch retailers, and branded jewellery players are steadily gaining ground against traditional mass-market and department-store operators. While scale remains a decisive advantage—as demonstrated by Signet’s market leadership—the rankings suggest profitability and influence are increasingly being driven by premium positioning, brand equity, and high-value transactions rather than store count alone.

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