GOLD NEWS

BRICS countries control over 20% of world’s gold reserves

Sun Oct 20 2024

A recent report from the World Gold Council reveals that the BRICS nations (Brazil, Russia, India, China, and South Africa) collectively hold over 20% of the world's gold reserves. This substantial stockpile underscores the growing economic power and influence of these emerging economies.

Key Findings:

• Russia Leads the Pack: Russia tops the list with 2,340 tons of gold, representing 8.1% of global reserves.
• China Close Behind: China follows closely with 2,260 tons, contributing significantly to the BRICS gold hoard.
• Dominant Duo: Together, Russia and China account for 74% of the total gold reserves held by the BRICS nations.
• Diverse Holdings: While Russia and China hold the majority of gold, the other BRICS nations also possess significant reserves, with India leading the group at 840 tons.

Implications of BRICS Gold Reserves:

The BRICS nations' substantial gold holdings have several important implications:

• Economic Power: Their gold reserves solidify their position as major economic players on the global stage.
• Financial Stability: Gold provides a stable asset that can help mitigate economic risks and protect against inflation.
• Geopolitical Influence: The BRICS currency, backed by gold, could challenge the U.S. dollar's dominance and shift the global balance of power.
• Investment Opportunities: The growing demand for gold, driven by factors such as central bank purchases and economic uncertainty, presents potential investment opportunities.

Additional Notes:

• The BRICS summit in Kazan, Russia, is expected to provide further details on the new currency and its potential launch date.
• The introduction of a BRICS currency could accelerate the trend of de-dollarization, as more countries seek to reduce their reliance on the U.S. dollar.
• The new currency could also have implications for the price of gold, as increased demand from central banks and investors could drive up its value.

Conclusion:

As the BRICS nations continue to expand their influence and explore new economic models, their gold reserves and the introduction of a new currency could have far-reaching implications for the global financial system. Investors and policymakers alike should closely monitor these developments to understand their potential impact on markets and economies worldwide.

Source: https://www.jpost.com/