- The BRICS Gold pact now includes 33 countries aiming to trade precious metals independently of Western platforms.
- Russia is leading efforts to establish a BRICS gold exchange with its own pricing system.
- The system operates through China’s Shanghai Gold Exchange International and supports dollar-free trade backed by physical gold.
- BRICS countries collectively hold about 6,000 tonnes of gold, representing 20% of global central bank reserves.
- Infrastructure includes vaults in Saudi Arabia, Singapore, and Malaysia to facilitate regional gold-backed credit operations.
The BRICS gold agreement has expanded to 33 nations committed to trading gold, platinum, and rare earth minerals outside Western-dominated exchanges. The initiative is led by Russia, which is pushing to create a precious metals exchange with an independent pricing mechanism within the BRICS framework. This system promotes trade settled in national currencies, using physical gold as backing instead of the U.S. dollar.
The platform operates through China’s Shanghai Gold Exchange International, which has developed the system’s architecture. In 2017, Russia piloted this approach by accepting yuan for oil payments, secured with blockchain technology that allowed yuan conversion into gold. As Russian Foreign Minister Sergey Lavrov clarified, “No one in the BRICS community is raising the issue of replacing the dollar. The alternative is to switch to settlements in national currencies.”
The combined gold reserves of BRICS countries amount to around 6,000 tonnes, approximately 20% of all global central bank reserves. Russia holds the largest share with 2,335.85 tonnes, closely followed by China at 2,298.53 tonnes. According to Russian Deputy Finance Minister Aleksey Moiseev, existing institutions such as SWIFT and the London Metal Exchange primarily serve Western interests.
The trade infrastructure includes vaults located in Saudi Arabia, Singapore, and Malaysia, allowing regional partners to store gold and use it as collateral for credit. Russian Deputy Foreign Minister Sergey Ryabkov stated the system aims to be operational by 2030. Participation in this gold-based settlement structure is voluntary, with trust grounded in the use of tangible gold assets.
Russian Finance Minister Anton Siluanov noted that establishing a BRICS metals trading mechanism will create “fair and equitable competition based on exchange principles.”
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