Gold is no longer just a safe haven but a tool of economic power. In 2024, the BRICS have amassed the precious metal amid expectations of tightened US trade policies. This proved profitable as new tariffs from Donald Trump drove gold prices to historic highs.
The BRICS and a Golden Strategic Move
The year 2024 saw a rise in the BRICS' gold reserves, with a collective accumulation of 4,800 tons of the precious metal. This strategy is part of a de-dollarization effort aimed at reducing economic dependence on the dollar. Initially met with skepticism, the strategy made sense after announcements from Washington. In March 2025, Donald Trump confirmed the implementation of tariffs up to 150% on several countries, including BRICS nations, which led to uncertainty in financial markets and a 14% increase in gold prices since the beginning of the year.
The Success of the BRICS Strategy
The success of the BRICS strategy rests on several factors: 1. Anticipation of economic tensions. 2. Gold as a safe haven asset. 3. An alternative to the dominance of the dollar. 4. Geopolitical leverage. These efforts have strengthened BRICS' financial autonomy and enhanced their international standing, particularly in the face of US attempts to control the global economy.
Towards a New Monetary System? Accelerating De-dollarization
The accumulation of gold by the BRICS, once viewed as a precaution, may now accelerate more radical changes amidst recent tariff hikes. Advanced discussions are underway regarding the creation of a gold-backed stablecoin, which could help countries avoid US sanctions and develop an independent financial system. Such an initiative could weaken the dollar's hegemony and foster a multipolar monetary system.
The surge in gold prices signifies a paradigm shift, with BRICS potentially gaining a strategic advantage amidst American economic pressure. While the Trump administration aims to tighten its grip on the global economy, it may inadvertently hasten the decline of the dollar as the sole international reserve currency.
