HOME   |   LOGIN

International Gold Reserves

International Gold Reserves

Posted on : 01 May, 2024    |    Last Update - 6 months ago   

Gold reserves of the United States and the BRICS nations (Brazil, Russia, India, China, and South Africa) have made news this week as we move froward through the 3rd quarter of the year. The growing interest among BRICS nations in creating a new international currency to challenge the dominance of the US dollar as the global reserve standard is being watched carefully on the global financial stage. This initiative is seen as a response to the weaponization of the US dollar through sanctions and trade wars. The leaders of BRICS are set on taking this idea to the finish line.

Over the last 78 yrs, the US dollar has performed as the world's principal reserve currency. After World War II, the US dollar was chosen as the primary global reserve currency, initially pegged to gold at $35 an ounce. However as many of our community members are aware, in 1971 the US decoupled the dollar from gold, making it fiat money. Subsequently, a petrodollar system was established, wherein OPEC countries agreed to denominate oil sales in US dollars, creating a synthetic demand for the currency.

Recent developments continue to suggest a potential shift away from the US dollar's dominance. For instance, Saudi Arabia signed a military cooperation agreement with Russia, reducing its reliance on the US for protection. Moreover, Saudi Arabia's Finance Minister indicated openness to trading in currencies other than the US dollar. These signals indicate de-dollarization.

The BRICS nations are working for the creation of an "international reserve currency," possibly backed by gold, which could bring stability to the new currency. Central banks in these countries have been accumulating gold reserves, further indicating their preparation for this new currency.

But how capable are they? Is it possible they hold enough reserve to stabilize this idea? Take a look at the current numbers held by these nations below.

BRICS Nations gold reserve by country:

 Russia: 2,330 tons - China: 2,113 tons - India: 797 tons - Saudi Arabia: 323 tons - Iran: 320 tons - Ethiopia: 200 tons - Brazil: 130 tons - Egypt: 126 tons - South Africa: 125 tons - UAE: 74.5 tons - Argentina: 61.7 tons. Altogether the nations hold a combined 6,600 tons of reserve gold. But this amount still stands to pale in comparison to the US reserve, currently at 8,133 tons and counting.

It’s no secret the BRICS nations collectively represent a significant portion of the world's population and GDP, surpassing the G7 countries. This could potentially lead to increased self-sufficiency among BRICS nations, reducing their reliance on the United States. China's Belt and Road Initiative (BRI), a massive infrastructure project connecting various regions, which excludes the United States from significant involvement also shines a light on the potential for future development in international trade strengthening outside of the US.

As reliance on the US dollar diminishes, central banks may begin divesting their dollar reserves. This could lead to hyperinflation, higher interest rates, falling asset prices, and a decline in the United States' global influence. The historical pattern of reserve currencies and empires rising and falling throughout time suggests that the BRICS nations may be on the cusp of reshaping the world. But more than anything, the importance of having direct ownership of real gold couldn’t be overemphasized. It’s now more important than possibly ever before to keep an eye on the real, tangible asset, as gold continues to shape the global economy and our national financial stage.

  • MintBuilder Blogs
  •    Gold Prices Reach Peak as World Bank Forecasts 8% Gain in 2024, Upside Risks Remain    Understanding GDP and Its Impact on the Gold Market    Seasonal Financial Reviews    BRICS and the Gold Race    Gold is Up and Rising, Chasing New Heights    Turkey's Financial Crisis Rocks the Gold Market    Unveiling the Mysteries of Credit Scores – Your Financial GPS!    Spot, Premiums and Everything In-between    MyMint Wallet, Digital Precious Metals Online 24/7    Silver Taking the Main Stage    Gold and the US Housing Market Swinging Up    Breaking News: Bitcoin ETF Approval Unleashes New Opportunities!    British Royal Mint Record Bullion Demand in 2023 & Continuing    A Guide to Financial Planning for the New Year    The Hidden Costs of Debt - Navigating Financial Responsibility for Your Family    Gold Market Upswing    Is Platinum About to Take Off?    Tax Season is Almost Here, Are You Ready?    Gold Continuing to Rise Globally    Connections of War and Gold Pricing    Jekyll Island: Birthplace of the Federal Reserve    FDIC Banks and Crashes    Cybersecurity & Small Business During The Holidays    BRICS News: USD Going Down, Gold Up    Comparing Prices for Precious Metals    Testing    Understanding GDP and Its Impact on the Gold Market    Thursday Thoughts: Who is MintBuilder and What Sets Us Apart?                                                                ABOUT GOLD...    GOLD VS $USD    THOUGHTS ON GOLD/SILVER POOL    WHY CHOOSE VAULT STORAGE?    WHY INVEST NOW?    WHY INVEST IN GOLD?    WHAT ARE PREMIUMS?    WHAT DOES NUMISMATIC MEAN?    HOW IS GOLD PURITY MEASURED?    HOW ARE COINS MADE?    GOLDBACK INFO    DID YOU KNOW?    DETERMINING THE COINS MARKET VALUE

    Still No Luck ? We can help you

    Create a ticket, we’ll get back to you as soon as possible.

    Submit a Ticket