BRICS Will Cause A Surge In Demand for GOLD and SILVER

The West, those first-world countries have been struggling with extreme inflation for the past few months. Due to war in Ukraine, the devaluation of the Euro, and the absurd renewable energy policies, the energy crisis hit Europe harder than any place on Earth. The U.S. isn't safe from inflation either, as the CPI hit 9.1% in June and it's still growing. While the West suffers from high prices of everything, the members of BRICS nations (Brazil, Russia, India, China, and South Africa) gather at the 14th BRICS Summit.

During the BRICS Summit, the five nations come up with a plan to issue a new global reserve currency. Turkey, Egypt, and Saudi Arabia are also considering joining the BRICS group. Experts say BRICS's intention to establish a reserve currency is an effort to weaken the US dollar and the IMF's SDRs. The BRICS will create their own zone of influence and currency within that space. This is not surprising to most analysts as the members of BRICS have been planning this for quite some time.

Why does this matter?

For starters, a new strong currency that threatens the status of the USD as the world reserve currency is something worthy of your attention. According to the book "Principles for Dealing with the Changing World Order" by Ray Dalio, USD might fall from grace in the coming decades. The rise and fall of the dominating empires and their currency are common throughout human history; the U.S. shouldn't take its position as the world leader for granted.

Another reason why the BRICS's decision is going to make a huge impact on the current climate of the economy is that they are going to use tangible assets like minerals such as gold, silver, copper, uranium, and nickel to back their new reserve currency. China and Russia have been hoarding gold in vast amounts throughout the decade. Both countries increased their gold reserve buying significantly in the years preceding the war in Ukraine. Russian banks have also joined the China International Payments System (CIPS), making trade between the two countries easier. According to Reuters, China opened its borders to billions of dollars in gold imports in April of last year. Perhaps BRICS's decision would explain why the surge in gold import by China recently. Expect an escalation in demand for all metals and minerals especially gold and silver as BRICS move forward with their plan.

Image source: reddit.com