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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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From Google To Generative AI: Jewellery Industry Faces A New Digital Discovery Era

The Transition From Link-Based Search Engines To AI Tools That Aggregate and Synthesize Information Poses A Unique Challenge For Diamond and Fine Jewellery Marketers. For The Natural Diamond Sector, The Stakes Are Particularly High.

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The jewellery industry must rapidly adapt to a fundamental shift in how consumers discover products as artificial intelligence threatens to displace traditional search engines,said Raluca Anghel, Head of External Affairs at the NDC

Speaking at the CIBJO Centenary Congress 2026, , she cautioned that conversational AI platforms could overtake conventional online queries within years, reshaping digital marketing and consumer trust.

The transition from link-based search engines to AI tools that aggregate and synthesize information poses a unique challenge for diamond and fine jewellery marketers. Unlike standard Google results, which present a list of competing websites, AI platforms deliver direct, conversational answers. This shift makes the source data fed into AI algorithms critical to what consumers see and buy.

For the natural diamond sector, the stakes are particularly high. The industry has struggled with consumer confusion between mined diamonds and laboratory-grown alternatives, as well as complex terminology surrounding sustainability and origin.

Anghel emphasized that ensuring AI systems draw from verified, accurate sources is essential to combating widespread industry misconceptions. CIBJO, the World Jewellery Confederation, has long advocated for clear disclosure standards and terminology to maintain consumer confidence.

As AI platforms increasingly mediate the purchasing journey, the digital battleground for jewellers is shifting. Industry experts at the congress noted that the challenge is no longer merely ranking high on a search page, but securing credibility within the generative answers provided by AI systems.

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JewelBuzz is Asia’s First Digital Jewellery Media & India’s No.1 B2B Jewellery Magazine, published by AM Media House. Since 2016, we’ve been the trusted source for jewellery news, market trends, trade insights, exhibitions, podcasts, and brand stories, connecting jewellers, retailers, and industry professionals worldwide.

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