The BRICS alliance had planned to back their new currency with gold to challenge the U.S. dollar’s global supremacy. The members China, Russia, and India accumulated massive amounts of gold in 2023. The three countries are the top buyers of gold this year, accumulating the precious metal as reserves in their Central Banks. However, the BRICS’ idea of backing their new currency with gold to take on the U.S. dollar is a bad idea. If the currency wars come down to gold, then the U.S. wins hands down.
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The U.S. Holds More Gold in Reserves Than the New Expanded BRICS
BRICS is now an 11-member alliance, as six new countries were inducted into the bloc in August. The six new countries to join BRICS are Saudi Arabia, the UAE, Egypt, Argentina, Iran, and Ethiopia.
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The U.S. holds the highest number of gold reserves of all of BRICS combined. As of 2023, the U.S. holds 8,133 tons of gold and no other country comes close to beating its feat.
The previous 5-nation alliance held 5,495 tons of gold in 2023. Even after the alliance became an 11-member group, the newly expanded union holds 6,600.23 tons of gold combined in their respective Central Banks.
Below are the gold reserves accumulated by the new BRICS bloc:
- Brazil – 130 tons
- Russia – 2330 tons
- India – 797 tons
- China – 2113 tons
- South Africa – 125 tons
- Saudi Arabia – 323 tons
- UAE – 74.49 tons
- Egypt – 126 tons
- Iran – 320 tons
- Argentina – 61.74 tons
- Ethiopia – 200 tons
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In conclusion, the idea of backing their new currency with gold will fail as the U.S. has more of the precious metal in reserves than all of the alliances combined.