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The Demand for Paper US Dollars
Has Increased!

According to the Financial Times, the demand for US paper dollar banknotes has increased considerably. Up to 42 % during the past 5 years (that means, approximately since the start of the current economic crisis). The demand is especially high for the 100 dollar note.

The same publication is telling us that there are approximately 1175 billion physical US dollars on the planet. Of course, this does not include the entire amount of dollars (the vast majority are in the form of digital currency, bonds, treasuries and others).

Interestingly, more than 2/3s of this money are found outside the United States.

It's obvious that people prefer to hold their money primarily in paper banknotes. If we start seeing a strong devaluation of the dollar, people will start massively investing in precious metals.

Another interesting fact is that (according to the Federal Reserve's Chairman - Ben Bernanke) a significant number of Europeans have started changing their savings into US dollars, believing that it's a more reliable currency than the euro. The trend has started in 2010 and is intensifying.

Similarly, European companies have been accumulating dollar reserves during recent years.

The cause of the dollar gaining strength is partly due to the devaluation of other major currencies: the euro and the Japanese yen, primarily. Therefore, investors, individuals, companies and even states are rushing to the dollar as an alternative.

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