Why the Dollar Is Having Its Worst Year Since 2008, and What It Means For You

Investopedia ^ | 3/9/25 | Colin Ladley

[delta7]

KEY TAKEAWAYS -The U.S. dollar has declined more than 4% since the start of the year, its biggest drop over this period since 2008. -Increasing recession risks have put interest rate cuts back on the table this year; interest rates are one of the primary drivers of the U.S. dollar's value. -A weaker dollar threatens to increase the cost of tariffs for consumers and businesses; it could also stimulate the economy by making U.S. goods and services less expensive for the rest of the world. -The U.S. dollar is having its worst start to a year since 2008 amid growing concern the Trump administration’s unpredictable economic and foreign policies threaten growth.

The U.S. Dollar Index (DXY) declined 4.2% between the start of the year and Friday’s close. That marked the largest decline for the index since 2008 when the index slid 4.8% over the same period as the Global Financial Crisis unfolded….

[delta7]

The USD used to be the prettiest pig in the pig pen, times a changing….

The King? Not electrons on a screen, not paper currencies, not property, not bloated equities, but Gold, as it has been for 5,000 years.

Up 43 percent YOY, 92 percent in five years. Gold is and always has been Wealth….

www.goldprice.org

[C210N]

The intrinsic value of a dollar is zero.

The intrinsic value of 1 ounce of gold is 1 ounce.

In times of financial change, money and its derivatives return to their inherent intrinsic values.

Gold is NOT rising in value, it is maintaining it. Dollar is losing its value, reflected in the price of gold in dollars.

[Tom Tetroxide]

Gold has already hit past the $3,400 handle. Next up is $3,500 and as it goes up the US Dollar gets even more worthless.

[tcox4575]

I understand that gold is a store of value. But there are two things I don’t understand:

- when and how does anyone extract that value into something meaningful. You can’t eat it.

- why is the message to buy gold always coming from people selling gold?

[desertsolitaire]

Is there so much to be made by selling gold that it is worth more than holding it? Why is anyone selling it if it is such a valuable th8ing to purchase and hold?

[Tell It Right]

The US dollar relative to other currencies, as shown in the DXY ticker symbol, is currently at 98.45, which is way higher than Obama's 85.30 in Apr 2009 and 81.11 in May 2009. Evidently Trump's handling of the dollar is better than The One's.

[TexasGator]

“The U.S. dollar has declined more than 4% since the start of the year, its biggest drop over this period since 2008.”

Up 25% since 2008.

Essentially the same value as was several decades ago.

[DesertRhino]

“when and how does anyone extract that value into something meaningful. You can’t eat it.”

Yeah, you can, unless you’re a moron. If you have a coin worth 3400 dollars, you can exchange that for a food budget of 65 dollars a week .. for an entire year.

[tsomer]

They’re only buying paper that says they own some quantity of gold .
They sell the paper to make dollars.

[Robert DeLong]

Yet cumbersome at the same time, which why we had paper money that was backed by gold, until it wasn't any longer.

Even with the dollar losing confidence, what paper currency offers more stability confidence?

[Pikachu_Dad]

You cannot eat an ounce!

[whitney69]

“Gold is and always has been Wealth”

So is land, oil, industry...but you can’t eat or drink it. And in the case of gold, you can’t even utilize it for anything other than the appearance of wealth. If I have a large fish, and you’re starving, but I keep it in the freezer because I can’t thaw it, then how long before you and I die of starvation?

wy69

[C210N]

- when and how does anyone extract that value into something meaningful. You can’t eat it.

The main purpose at this time to have gold, is trading near-worthless dollars (3% today of it's 1913 value) for something of real value, as we shift out of fiat into PM-backed currency. The chatter of a gold revaluation is coming (now at $42.22 an ounce, will be at least $3500/oz, and more likely $7000/oz, or according to USDebtClock $8081/oz). At some point I expect a situation where we will be limited to convert our old fiat dollars for new PM-backed dollars. - why is the message to buy gold always coming from people selling gold?

I recommend you trade your fiat for gold. I'm not, nor would I ever, sell you gold. At ANY price.

And I'll take the liberty to say that with a Gold-to-Silver ratio of 105 today, take the fiat you'd buy gold with, and get physical silver instead.

What new PM-backed dollars may look like.

[Georgia Girl 2]

That’s why we have all our money in real estate and precious metal.

[C210N]

Gold is a transition metal, from fiat to PM-backed.

I have no plans to eat it, grind it up for hamburger filler, or anything of the sort.

We seem to be around Jan 1922. This time will be different, though, IMHO. There will not be any war, just collapse of fiat. The replacement for PM-backed is waiting in the wings to circumvent the inclination to war.

People don't seem to take a fiat currency collapse seriously. Quite unfortunate for them.

[C210N]

You cannot eat an ounce!

nor, can you eat a dollar bill, for that matter.

Although, perhaps the bill would be worse to eat, as your body ingests and digests all sorts of toxins in paper and ink, while the ounce passes thru (I suggest break it up into individual grams, prior to engorging on it).

[C210N]

Gold has already hit past the $3,400 handle. Next up is $3,500 and as it goes up the US Dollar gets even more worthless.

I'm of the view that silver is being used by central banks to facilitate their physical gold purchasing. They short paper silver.

Bottom line, silver is stuck in the mud, pumped and dumped, while gold moves higher and higher. GSR hit 105, now about 100.

[simpson96]

The key word in the title is “having”.

By year’s end, it won’t end up that way. It may well end up a great year for the dollar.

[SteveH]

questions

1 if physical gold is at a relatively constant value, and the USD is declining in value by contrast with physical gold, then why are USA real estate prices not increasing in proportion to the price of physical gold?

2 same question for USA stocks

3 same question for physical silver

[cowboyusa]

President Trump is trying g to get the Dollar down.