BRICS Nations on a Gold Buying Spree in 2024: A Crypto Perspective

• BRICS Emerges as the Largest Gold Buyer in 2023
• Continued Gold Accumulation in 2024
• Why the Aggressive Gold Purchases?
• Protection Against Potential US Recession
• Gearing up for Currency Fluctuations
• Future Plans of BRICS
• Backing New Currency with Gold?
• Impact on US if BRICS Rejects Dollar for Trade

BRICS Emerges as the Largest Gold Buyer in 2023

In 2023, the dominant purchaser of gold was BRICS, with nations like China, Russia, and India amassing billions worth of the valuable metal. The World Gold Council's most recent figures reveal that China alone, a BRICS member, secured 225 tonnes of gold for its reserves in 2023. China has been primarily leading this gold buying race among BRICS, closely followed by Russia and India.

Continued Gold Accumulation in 2024

The gold accumulation trend from BRICS is projected to persist into 2024, as the Central Banks of these nations, particularly China and Russia, have initiated gold purchases as early as January 2024. According to a report from the World Gold Council, Central banks have bought a remarkable net 800t on a year-to-date basis, which is 14% higher than the same period the previous year.

Why the Aggressive Gold Purchases?

Protection Against Potential US Recession

Analysts suggest that the stockpiling of gold by BRICS is a strategic move to safeguard their Central Bank reserves in anticipation of an impending recession in the US. The upcoming US Presidential elections could potentially destabilize the markets, prompting countries to augment their gold reserves.

Gearing up for Currency Fluctuations

Furthermore, BRICS aims to shield its reserves should there be a fall in the US dollar value, which could induce a ripple effect on their native economies. Securing gold in reserves provides a safety net for these nations, with the precious metal serving as a hedge against market crashes and inflation.

Future Plans of BRICS

Backing New Currency with Gold?

There is speculation amongst various quarters that BRICS intends to back their upcoming currency with gold. This would ensure a secure start for the alliance and sustain its grip on the international currency markets. Details regarding the formation of the new currency remain undisclosed as the BRICS currency is yet to be launched.

Impact on US if BRICS Rejects Dollar for Trade

The impact on various sectors in the US could be significant if BRICS decides to stop using the dollar for trade. Despite being the leading buyer of gold, it is worth noting that the US still holds more of this valuable metal than all of the BRICS countries combined.

Edited by Jonathan Stoker