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BRICS Gold Standard Gains Momentum as Central Banks Boost Reserves

  • Central banks worldwide are increasing Gold reserves at record rates, with over 1,000 tonnes added in 2024.
  • The shift in gold holdings is driven by moves to reduce dependence on the U.S. dollar and prepare for possible BRICS-backed monetary systems.
  • The United States remains the largest holder of gold reserves globally, followed by Germany, Italy, France, and Russia.
  • Countries are repatriating gold stored abroad due to concerns about accessibility after international sanctions in 2022.
  • BRICS nations are developing parallel payment systems and exploring gold-backed settlement methods to bypass dollar-based structures.

Central banks are accelerating the accumulation of gold in 2024, adding more than 1,000 tonnes to their reserves. This surge reflects a global trend to move away from reliance on the U.S. dollar, according to several financial reports. The push is partly driven by the interest of BRICS nations—Brazil, Russia, India, China, and South Africa—in creating gold-based financial alternatives.

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Data shows that the United States maintains the world’s largest official gold reserves, holding around 8,133 tonnes. Germany and Italy follow with about 3,350 and 2,452 tonnes, respectively. France’s reserves stand at 2,436 tonnes, and Russia holds roughly 2,332 tonnes. Central banks in several countries, including Nigeria and China, are now repatriating physical gold from vaults in New York and London to their own countries.

This shift intensified after the U.S. froze Russia’s reserves in 2022. The action prompted several countries to question the safety of keeping assets in foreign vaults. The article notes, “Legal ownership does not count much when you simply cannot access the physical piece of your cake.” Institutions like Germany’s Bundesbank are reconsidering their gold storage policies, and new initiatives are emerging across Europe to keep reserves close to home.

BRICS nations are also constructing systems like BRICS Pay, designed to facilitate transactions outside traditional U.S. dollar channels. Gold is already in use for settling some energy trades, highlighting the possibility of practical implementation for a gold-backed currency solution. According to the European Central Bank, gold has surpassed the euro as a global reserve asset, which signals rising interest in gold for strategic positioning.

Retail investors have largely stayed out of gold investments so far, while institutional strategies appear defensive. The current movements by central banks aim not only to protect assets but to build infrastructure for potential future transitions. Analysts note that future BRICS summits may further discussions surrounding parallel monetary systems and settlement methods independent of politically influenced networks. For additional details, readers can refer to How the World is Quietly Preparing for a Gold-Backed BRICS Currency and BRICS Gold-Backed System Sparks Sovereignty Push vs US Dollar.

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