As BRICS Accumulate Gold, Western Banks Continue to Short Sell

BRICS+ nations hoard gold as Western banks gamble on short positions, ignoring the looming financial crisis. Will the West awaken to reclaim its golden edge in time?

In a seismic shift that’s shaking the foundations of global finance, BRICS nations and their new allies are amassing gold at an unprecedented rate, leaving Western investors scrambling to catch up. Although the West is showing signs of awakening, with growing ETF inflows in September, many warn it’s too little, too late. As inflation rates soar and economic instability looms, the stark reality of gold’s timeless value is becoming impossible to ignore.

BRICS Expansion: A Golden Coalition
Later this month, Russian President Vladimir Putin will host the first-ever BRICS+ summit in Kazan from October 22 to 24. During the summit, the original BRICS members — Brazil, Russia, India, China, and South Africa — will officially welcome Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) into the alliance. With this expansion, BRICS+ now represents over 40% of the global population, positioning itself as a powerful counterweight to the Western-dominated financial system.

The BRICS alliance has stated more than 30 different countries have expressed interest in joining the economic government conglomerate and leadership continues to consider adding more nations to the roster.

Gold has become a central tool in the coalition’s strategy to challenge the economic dominance of the West. As BRICS+ nations increasingly turn to gold to diversify their reserves and hedge against inflation, the bloc signals its intent to reshape global trade and finance. This expanded coalition, with its diverse economic powers, is united in its goal to reduce Western influence and build parallel financial structures.

This chart compares central bank purchases of gold (blue line) to foreign purchases of United States treasuries (orange line). (Source: U.S. Treasury)

All eyes are on the upcoming Kazan summit, which will begin Oct. 22. At this summit, the BRICS+ nations will outline their next steps. We will closely monitor updates from this gathering as the coalition continues its push to make gold a key element in the future of global economic governance.

However, reports this week showed some dissension among BRICS members, specifically India, in regard to de-dollarization efforts.

Indian Foreign Minister S. Jaishankar said India has no plan to target the U.S. dollar, an announcement that placed the Asian country directly at odds with Chinese and Russian rhetoric.

“We have never actively targeted the U.S. dollar,” he said.

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