Since late 2022, the BRICS alliance has significantly increased its gold reserves, with China leading the purchases, followed by Russia and India. This accumulation has fueled speculation that BRICS might back their new currency with gold to challenge the U.S. dollar. However, the BRICS currency is still in development, and the alliance aims to promote their native currencies for cross-border transactions first.
James Hickman, founder of Sovereign Man, suggested that gold could soon replace the U.S. dollar, especially as BRICS countries view holding U.S. dollars as risky due to the U.S. federal debt surpassing its GDP. While Americans have been selling gold ETFs, BRICS central banks have been accumulating gold, positioning themselves to better navigate potential economic downturns. Hickman highlighted that North American investors sold over $4 billion worth of gold ETFs in the first four months of the year, indicating a significant shift in gold holdings
