How BRICS is Driving the Gold Price
Peak Prosperity
Deep Dive
Why has gold risen to $2,800?
Gold's rise is driven by Eastern central bank buying and BRICS' de-dollarization efforts, aiming to create a more stable, decentralized monetary system backed by physical assets like gold.
Why are BRICS countries planning to reduce their reliance on the US dollar?
BRICS countries are reducing their reliance on the US dollar to avoid the risks of a currency controlled by a single nation, including the potential for abuse and the weaponization of the dollar against them, as seen with the freezing of Russian sovereign reserves.
What are the key implications of BRICS launching their own currency backed by precious metals?
The launch of a BRICS currency backed by precious metals will directly impact the US dollar's role as a global reserve currency, potentially leading to a decline in demand for US treasuries and increasing the cost of borrowing for the US.
Why is the traditional 60-40 equities-bond portfolio model no longer reliable?
The traditional 60-40 portfolio model is no longer reliable due to increased geopolitical tensions, lack of transparency, and the paradigm shift in global markets, particularly with the rise of BRICS and the potential for a new monetary system.
Why is there a significant demand for silver in Asia?
Asia, particularly India, has a significant demand for silver due to its industrial applications, including the growth of solar energy which requires large amounts of silver, and the ongoing de-dollarization efforts that make silver a strategic asset.
Why are central banks buying more gold and silver?
Central banks, especially from BRICS countries, are buying more gold and silver to diversify their reserves, reduce reliance on the US dollar, and prepare for a potential new monetary system that may be backed by physical assets for stability and trust.
What is the BRICS' planned International Precious Metals Exchange, and why is it significant?
The BRICS' planned International Precious Metals Exchange is significant as it aims to provide a fairer and more transparent market for precious metals, competing with existing exchanges and reducing the risk of market manipulation and rule changes.
Why is trust in financial institutions and markets eroding?
Trust in financial institutions and markets is eroding due to lack of transparency, such as central banks' undisclosed futures and options trading, and recent actions like the invalidation of nickel contracts on the London Metal Exchange, which undermine market integrity.
What are the potential long-term investment cases for gold and silver?
Gold has a non-zero option value as a potential monetary asset, especially if remonetized through BRICS or other systems. Silver, with its industrial applications in solar energy and other sectors, is seen as a long-term growth play and a hedge against economic uncertainty.
Why is diversifying assets across different jurisdictions important?
Diversifying assets across different jurisdictions is important to protect against the risk of asset seizure and geopolitical instability. It ensures that wealth is preserved and accessible in times of crisis, providing a hedge against jurisdictional and geographic risks.
- Gold price surged above $2,800.
- The rally is driven by central bank buying, primarily from Eastern countries.
- BRICS conference significantly impacts gold price and global finance.
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