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European Companies
are Accumulating US Dollar Reserves

The euro crisis has determined various European firms to invest in dollars. The trend has been intensifying during recent years.

The euro is closer to collapse than the US dollar and it's also the main rival of the American currency. Obviously it's worth owning dollars right now than euros. Companies need liquidities and a reliable currency that's widely accepted by foreign and domestic partners.

At this time, within Europe it's more worth trading in US dollars than in rubles or renminbi.

As a result of all these, the US dollar will gain strength on the back of the euro's crash. But, the crash is necessary, simple devaluation and even loss of confidence in the euro can determine Europeans to rush to the US dollar.
A similar scenario has already happened with the start of the 2008 crisis, when many rushed to buy Swiss francs, known to be a very stable currency.

Evidently, the dollar will drag gold's price down during such a scenario. And this is already happening. Watch the news, the trends and stay tuned to!

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