'A natural desire to diversify': Janet Yellen predicted an eventual decline in the USD as the global reserve currency — and she's not alone in making that call. 3 ways you can prepare in 2024

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The U.S. dollar saw a 9% decline in its share of global reserves in 2023, causing many to question since then whether the dollar’s days of dominance are over. This shift underscores a gradual change rather than an end to its dominance.

During a congressional hearing last summer, Treasury Secretary Janet Yellen gave her two cents on the subject of so-called “de-dollarization.”

Despite efforts by countries like China and Russia to diminish its dominance through sanctions and foreign policy— Yellen was adamant that “it will not be easy for any country to devise a way to get around the dollar.”

She did, however, warn that the dollar’s share of global reserves may continue to decline as countries look to “diversify.”

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When asked at the time if the dollar’s international status is declining, Yellen said “we should expect over time a gradually increased share of other assets in reserve holdings of countries — a natural desire to diversify. But the dollar is far and away the dominant reserve asset.”

The dollar's share of global reserves went on to remain flat for much of 2023. However, Michael Langham, emerging markets analyst at abrdn, wrote the dollar's share of currency reserves has been on a "gradual downward trend," falling over 10 percentage points over the past 20 years, according to a September Reuters report.

A December Reuters poll of 71 currency strategists showed the dollar is expected to fall against G10 currencies this year, with much of that decline predicted to come in the second half of the year.

Whether the dollar is replaceable or not, you may be worried about how economic volatility, persistent inflation and stock market uncertainty could impact your own dollars — especially your retirement fund. Here are three investments that can help you hedge against the declining dollar in 2024.

Gold

Gold is a great potential alternative because, unlike the U.S. dollar, which has lost 87% of its purchasing power since 1971, gold remains more stable over time.

You can get a piece of this golden action by opening a Gold IRA — a type of individual retirement account that allows you to invest in gold and other precious metals in physical forms — with Rosland Capital.

By opting for a Gold IRA with Rosland Capital — an industry leader in precious metals with an A+ rating from the Better Business Bureau — you can diversify your portfolio and stabilize your finances.

Amid the dollar losing its value, precious metals won’t be affected, so preserving your savings with gold might just be the inflation-hedging tool you need.

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Real estate

If you’re keen on something a bit more tangible, real estate is another asset class that can resist de-dollarization and generate passive income.

Commercial real estate has long been touted as a wise investment for adding stability to your portfolio, outperforming the S&P 500 over a 25-year period. But commercial real estate has always been reserved for a few elite investors — until now.

First National Realty Partners allows accredited investors to access institutional-quality commercial real estate investments — without the leg work of finding deals yourself.

FNRP’s secure online platform makes investing in commercial real estate convenient and simple. You can engage with experts, explore available deals and easily make an allocation, all in one personalized portal.

But if you aren’t an accredited investor you can still invest in fractional shares of residential and vacation rental properties through Arrived. With Arrived, you can start by browsing through a curated selection of homes, vetted for their appreciation and income potential. Once you find a property that best suits your investing needs, you can choose the number of shares you want to buy and start investing with just $100.

If you’re looking for an all-in-one platform, RealtyMogul allows accredited investors to invest in institutional-quality real estate opportunities in residential, commercial, and industrial sectors. RealtyMogul lets you invest in the properties as a real estate investment trust (REIT) without paying for the property in full.

Investors can sort through professional-vetted real estate opportunities and review information about their performance before deciding where to put their money. From investment screening to signing legal documents, everything you need to manage your investment portfolio can be done on yourpersonal online dashboard.

If you're looking for more ways to make money with real estate, check out our picks for the Best Real Estate Investments of 2024.

Get in on private markets

Formerly the exclusive domain of institutional-level investors, private markets are expected to balloon to reach between $13.7-15 trillion in assets under management, according to PricewaterhouseCoopers.

You can now gain access to a whole range of asset classes formerly reserved for institutional-level investors.

Investing through Fundrise gives you access to a range of alternative investments, including real estate, private debt, and venture capital to help grow your retirement portfolio.

With over two million investors and $7 billion in real estate assets alone, Fundrise offers an accessible entry point for retirees and soon-to-be-retirees seeking to diversify their portfolios. You can invest confidently with the potential to receive dividends every quarter, with returns consistently outperforming the S&P 500.

If you want to secure your financial future amidst economic volatility and maximize your investments, you can do so through Zoe Financial. Zoe Financial is a modern wealth platform that connects you with professionally vetted, curated fiduciaries, financial advisors and financial planners.

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.