A group of economically-aligned nations is preparing to terminate their reliance on the U.S. currency by purchasing enormous quantities of gold.
According to a recent assessment by U.S. Global Investors, the BRICS nations will continue to be “huge buyers” of gold for the foreseeable future.
Frank Holmes, chief executive officer, and chief investment officer of the company assert that China’s massive accumulation of gold is consistent with the theory that the world is on a long-term path toward economic polarization.
“The BRICS (Brazil, Russia, India, China, and South Africa) comprise three of the net purchasers of gold. This is important to note because, as I’ve been telling you over the last several weeks, the globe may soon become multipolar, with the United States dominating one side and China on the other.”
The BRICS nations’ purchasing power parity proportion of the global economy has surpassed that of the G7 nations (Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States) for the first time ever.
According to a report by the World Gold Council, China’s gold reserves have increased by 102 tonnes since the beginning of the year.
And gold is the key to this perspective multipolar economic future, according to Holmes, as it will likely be used to support the establishment of a non-USD currency.
There are allegations that the BRICS, which could eventually include other significant emerging nations such as Saudi Arabia, Iran, and others, are creating their own payment system.
It remains to be seen how effective their efforts will be, with early critics such as billionaire Chamath Palihapitiya asserting that China will never de-dollarize effectively as long as the yuan is pegged to the dollar.
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