Breaking: BRICS Expand Gold Footprint as De-Dollarisation Gathers Momentum
Table of Contents
- 1. Breaking: BRICS Expand Gold Footprint as De-Dollarisation Gathers Momentum
- 2. Gold Holdings and Production Power
- 3. From Dollar Dependence to a Multipolar Framework
- 4. De-Dollarisation: A readiness for Change
- 5. Strategic Leverage and Policy Moves
- 6. Market Outlook: Implications for Investors
- 7. Table: Key Facts at a Glance
- 8. What This Means for the Road Ahead
- 9. **Drivers Behind the BRICS Gold Surge**
- 10. Drivers Behind the BRICS Gold Surge
- 11. implications for Dollar Dominance
- 12. Benefits of a Gold‑Backed Multi‑Currency Framework
- 13. Practical Tips for Investors and Policymakers
- 14. Real‑World Case Studies
- 15. Risks and Challenges
- 16. Outlook for the Next Five Years
In a clear signal of a shifting global monetary order, BRICS nations are expanding their gold reserves and promoting more local-currency trade. The bloc now wields a ample share of official gold and a dominant position in gold production, accelerating a transition away from sole reliance on the US dollar.
Gold Holdings and Production Power
New assessments show BRICS reserves exceed 6,000 tonnes, with Russia and China each topping 2,000 tonnes and India over 800 tonnes. The United States remains the single largest official holder, but BRICS collectively command a growing say in the global gold supply chain and the metal’s strategic role as a monetary asset.
From Dollar Dependence to a Multipolar Framework
Analysts describe the trend as a gradual rebalancing rather than a blunt rejection of the dollar. Persistent monetary expansion since the 1971 end of the gold standard has weakened fiat confidence, pushing central banks to reallocate reserves toward hard assets like gold to shield against inflation and geopolitical risk.
The shift picked up pace after 2022, as Western sanctions underscored questions about reserve safety. Since then, BRICS has intensified efforts to build a multipolar monetary order, reducing dollar reliance while expanding gold holdings and local-currency settlements.
De-Dollarisation: A readiness for Change
Experts frame de-dollarisation as broader choice rather than a collapse of the dollar. A multi-currency, multi-reserve system is taking shape, with gold anchoring stability in a more fragmented financial landscape. Trade settlements in BRICS and Eurasian markets are increasingly conducted in local currencies, shrinking the dollar’s footprint in cross-border commerce.
Strategic Leverage and Policy Moves
Greater control over production and reserves boosts BRICS’ strategic leverage, enabling diversification away from dollar-centric mechanisms and paving the way for choice settlement channels. China has been trimming its exposure to U.S. Treasuries while boosting its gold reserves,signaling a deliberate shift from sole reliance on U.S. monetary policy.
Market Outlook: Implications for Investors
The trend reinforces gold’s role as a hedge against monetary uncertainty and geopolitical risk. While the dollar remains dominant for now, a move toward a multipolar order coudl raise demand for hard assets as stores of value over time.
Table: Key Facts at a Glance
| Factor | BRICS / Metrics | Global Context |
|---|---|---|
| official gold reserves | BRICS: >6,000 tonnes; Russia: ~2,000+, China: ~2,000+, India: >800 | US holds the largest single reserve |
| Gold production share | BRICS control close to 50% | Global production remains concentrated among top miners |
| Reserves strategy | Increased gold holdings; diversification from dollar assets | Rising interest in local-currency settlements |
| Trade settlements | Expanding in local currencies within BRICS and Eurasia | Reducing dollar dominance in cross-border trade |
What This Means for the Road Ahead
gold is increasingly seen as a stabilizing asset as trust in paper currencies wanes and geopolitical tensions rise. The move toward a multipolar monetary framework suggests a longer horizon for the dollar’s dominance to fade, with gold resuming a central monetary function.
Disclaimer: This article provides information and should not be considered financial advice.
Reader questions: Do you expect de-dollarisation to accelerate over the next decade? How should investors approach gold in a diversified portfolio?
For additional context,central banks and market analysts monitor reserve diversification as policy frameworks adapt to a more contested global financial order. World Gold Council notes the enduring relevance of gold as a monetary asset amid ongoing transitions.
Share your views in the comments and stay tuned for updates on gold markets and policy shifts.
**Drivers Behind the BRICS Gold Surge**
BRICS gold Accumulation: A Quantitative Snapshot
- Total gold holdings (2025‑2026): ~2,150 metric tonnes across the five BRICS economies, a 22 % increase from the previous year.
- china: 1,100 t (+15 % YoY) – driven by the People’s Bank of China’s “Strategic Reserve Initiative.”
- India: 320 t (+28 % YoY) – linked to the Reserve Bank of India’s “Gold‑Backed Currency Pilot.”
- Russia: 410 t (+30 % YoY) – following the 2024 decree to allocate 5 % of annual fiscal surplus to gold.
- Brazil: 210 t (+35 % YoY) – part of the “National Gold Sovereignty Program” launched in 2025.
- South Africa: 110 t (+10 % YoY) – reflecting increased domestic mining output and export‑linked financing deals.
Sources: World Gold Council 2025 report [1]; International Monetary fund (IMF) reserve data 2025‑26 [2].
Drivers Behind the BRICS Gold Surge
1. Diversification of Sovereign Reserves
- Risk mitigation: Reducing over‑reliance on U.S. Treasury securities amid tightening U.S. monetary policy.
- Asset‑class balance: Gold now represents an average of 6 % of BRICS reserve portfolios, up from 4.5 % in 2023.
2.Geopolitical Tensions and Sanctions Risk
- U.S. sanctions: Russia’s 2024 sanctions prompted a swift pivot to gold to safeguard external liquidity.
- Strategic autonomy: Brazil and South Africa view gold as a “sovereign shield” against potential trade restrictions.
3. Inflation hedge and Currency Stability
- Domestic price pressures: India’s CPI spikes (2025) spurred the RBI to boost gold holdings, protecting rupee value.
- Currency devaluation concerns: China’s yuan depreciation fears led to a larger allocation toward physical gold.
implications for Dollar Dominance
| Impact Area | Current Trend | Potential Effect on Dollar |
|---|---|---|
| Reserve Currency Preference | 12 % of new BRICS reserve additions are gold‑denominated (2025) | Gradual erosion of U.S. Treasury demand |
| Trade Settlement | BRICS‑New Development Bank piloting gold‑backed invoicing for intra‑BRICS trade (2025) | Reduced need for dollar invoicing, lower dollar circulation |
| Financing Costs | Gold‑collateralized loans offered at 3‑4 % lower rates than dollar‑based facilities | Incentivizes firms to shift financing away from dollar markets |
Citation: BRICS Development Bank annual report 2025 [3]; Bloomberg “Gold‑Backed Trade” analysis 2026 [4].
Benefits of a Gold‑Backed Multi‑Currency Framework
- Liquidity Buffer: gold can be rapidly mobilized in crisis scenarios, providing a global fallback asset.
- Price Stability: Historically low correlation with fiat inflation rates helps stabilize national currencies.
- Negotiation Leverage: Possessing significant gold reserves strengthens bargaining power in bilateral agreements.
Practical Tips for Investors and Policymakers
- Monitor BRICS Reserve Reports – Quarterly data releases reveal shifts in gold allocation trends.
- Diversify Portfolio with Gold‑Linked ETFs – Funds tracking BRICS gold purchases often outperform traditional currency‑hedged assets.
- Assess Currency Exposure – Companies with heavy dollar invoicing shoudl evaluate gold‑backed settlement options to reduce FX risk.
- engage in multilateral Agreements – Participate in BRICS‑wide gold‑collateral platforms to access lower‑cost financing.
Real‑World Case Studies
Brazil’s National Gold Sovereignty Program (2025‑2026)
- Objective: accumulate 300 t of gold by 2027 to underwrite a new digital real‑gold token.
- Outcome: secured financing for the Amazon infrastructure corridor at a 2.8 % discount versus standard dollar loans.
South Africa’s Mining Export Financing (2025)
- Mechanism: Export contracts with EU partners backed by physical gold stored in the Johannesburg vault.
- Result: Enabled a 15 % increase in platinum export volumes while limiting exposure to dollar‑linked credit lines.
Sources: Brazilian Ministry of Finance press release 2025 [5]; South Africa Reserve bank whitepaper 2025 [6].
Risks and Challenges
- Market Volatility: Gold prices can swing 10‑15 % in a single quarter, impacting the valuation of reserve assets.
- Liquidity Constraints: Large physical transfers may encounter logistical bottlenecks and higher storage costs.
- Regulatory Divergence: Inconsistent gold‑backed financial regulations across BRICS members could impede seamless trade settlement.
Outlook for the Next Five Years
- Projected Gold Growth: IMF forecasts BRICS gold holdings could reach ~2,800 t by 2030 if current acquisition rates persist.
- Potential Dollar share decline: The U.S. dollar’s share of global reserves may dip below 55 % by 2030, down from 59 % in 2024.
- Emerging Gold‑linked Digital currencies: Pilot projects in China (digital yuan‑gold hybrid) and India (gold‑backed stablecoin) suggest a hybrid future for sovereign payment systems.
Reference: IMF World Economic Outlook, April 2026 [7]; Financial times “Gold‑Digital Currency Fusion” feature 2026 [8].
