Recently, we have heard more and more that the BRICS alliance (including China and Russia) is working on a grand plan to dethrone the US dollar as a world reserve currency. It won’t be easy, but it looks like gold is part of that plan. According to a new report by U.S. Global Investors, the BRICS countries are currently buying up gigantic amounts of gold.
China is in the lead
According to the CEO of U.S. Global Investors – Frank Holmes – It is mainly China that beats the clock when it comes to buying gold. This seems to point in the direction of the theory that the world power can sometimes split in two.
On the one hand, you get the West, with America as the great leader. While on the other side is the BRICS alliance with China as the captain of the ship.
” For the first time in history, the GDP of the BRICS countries exceeds that of the G7 (Canada, France, Germany, Italy, Japan, UK and US), ” Holmes said.
According to a report by the World Gold Council, China has already added 102 tons of gold to its reserves since the start of 2023. Frank Holmes expects that China and the BRICS countries will use that gold for the creation of a new currency, in which gold will also play a role.
Gold is the key
If it’s up to Holmes, gold is the key to the economy of the future. ” The BRICS Alliance needs the precious metal to support their currency and stay away from the US dollar, which has been the world’s reserve currency for nearly 100 years, ” Holmes said.
Holmes goes on to say that an increasing proportion of international trade takes place in the Chinese yuan. In itself, it is, but the stories that the end of the dollar is there at any moment are greatly exaggerated.
At the moment, there is still no serious alternative to the US dollar, and the Chinese yuan still represents relatively little against the dollar. Of course, that could change, but a lot still needs to be done for that.
Bitcoin does not seem to be in the story at the moment, which is perhaps a good thing. In this way, Bitcoin can continue to develop quietly under the radar and gather more supporters.
