2024

Gold

<p><strong>The BRICS are not skimping on deploying their strategy to exit the economic dominance of the US dollar. The monetary projects of the alliance are drawing attention, particularly the massive funds they are injecting to acquire significant amounts of gold.</strong></p>
<h2 id="h-towards-a-gold-backed-brics-currency">Towards a Gold-Backed BRICS Currency?</h2>
<p>We had previously discussed the BRICS monetary plans to free themselves from the American dominance exercised through its currency. Ambitions we mentioned in previous articles that could involve the crypto industry.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>Without challenging this considered option, the BRICS monetary plans seem to be shaping up in a completely different direction. It appears that for the past 14 months, <a href="https://watcher.guru/news/brics-china-buys-gold-14-consecutive-months-stockpiles-9-tonnes#google_vignette" target="_blank" rel="noopener noreferrer nofollow">the Alliance has been buying gold in large quantities.</a> This is raising suspicions and fueling speculation.</p>
<p>For example, in the year 2023 alone, China has acquired a staggering amount of 225 tons, solidifying its position as the world’s leading gold investor. The legitimate question to ask is what motivates the voracious appetite of the Chinese behemoth for the precious metal.</p>
<p>The theory that seems to be emerging in response to this query suggests that the BRICS might in fact be working on the issuance of a common currency backed by gold. An option that could stand up to the powerful US dollar.</p>
<figure class="wp-block-embed aligncenter is-type-rich is-provider-twitter wp-block-embed-twitter">
 <div class="wp-block-embed__wrapper">
  <div class="entry-content-asset">
   <div class="social-embed-container">
    <blockquote class="twitter-tweet" data-width="500" data-dnt="true">
     <p lang="ja" dir="ltr">BRICS: <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f1e8-1f1f3.png" alt="🇨🇳" class="wp-smiley" style="height: 1em; max-height: 1em;"> China Stockpiles Gold for 14 Consecutive Months, Buys 9 Tonnes.<br><br>BRICS: <img src="https://s.w.org/images/core/emoji/14.0.0/72x72/1f1e8-1f1f3.png" alt="🇨🇳" class="wp-smiley" style="height: 1em; max-height: 1em;">中国、14か月連続で金を備蓄、9トン購入。 <a href="https://t.co/ujdT3mUCoq" rel="noopener noreferrer nofollow">pic.twitter.com/ujdT3mUCoq</a></p>— 世紀末の魔術師 (@Preside88177491) <a href="https://twitter.com/Preside88177491/status/1745209790870224954?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">January 10, 2024</a>
    </blockquote>
    <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
   </div>
  </div>
 </div>
 <figcaption class="wp-element-caption"><em>BRICS are investing heavily in gold</em>
 </figcaption>
</figure>
<h2 id="h-an-option-not-so-easy-to-realize">An Option Not So Easy to Realize!</h2>
<p>The appeal of a BRICS ‘monetary shield’ in gold is undeniable. However, its feasibility is another matter. Gold, despite its almost unalterable value, remains particularly sensitive to the fluctuations of the monetary market.</p>
<p>This flaw means that a gold-backed BRICS currency would ultimately be somewhat vulnerable in the long term. This could undermine the objectives of the alliance of countries and their aspirations for monetary and financial autonomy.</p>
<p>But beyond these ambitions, other explanations could very well justify massive investments in precious metals. Gold is particularly useful for diversification of reserves, a sacrosanct principle for central banks.</p>
<p>This is especially so in times of economic turbulence, where gold remains one of the few assets to shield its holders from financial disaster. Moreover, given the current troubles of the US dollar, the appeal of gold as a protection against its potential weakening cannot be ignored. In any case, the gold rush of the BRICS somewhat confirms the organization’s intention to break away from traditional financial hegemony. No matter the cost.</p>

Gold, the new weapon of the BRICS to end the supremacy of the dollar?

Table of Contents

Cointribune EN

Other articles published on Jan 13, 2024

SEC chief Gary Gensler assures no breach after X hack

Venezuela’s Petro (PTR) Faces Shutdown as it Struggles to Gain Traction

CyberConnect Token Price Dynamics Amid Unlock Event and Market Trends

XRP Price Analysis for January 13

Spot Bitcoin ETFs see impressive $400 million net inflow

Ethereum Market Update Amid Whale Movements

Join our free newsletter for daily crypto updates!