BRICS and other developing countries are ramping up their gold purchases while decreasing US dollar holdings, reports the World Gold Council.
Throughout 2022 and 2023, BRICS led global gold buying and continued this trend in 2024. Notably, Russia and China are leading by example, shedding US Treasury bonds and amassing significant gold reserves.
In 2024 alone, China divested $53.3 billion in US Treasury bonds, prioritizing gold acquisitions. While other BRICS nations follow suit on a smaller scale, China’s actions dominate the shift away from US Treasuries.
Egon von Greyerz, Founder of Matterhorn Asset Management, describes this period as the “BRICS gold era,” emphasizing the increasing preference for gold over the US dollar in BRICS central banks.
Greyerz predicts a future where fewer countries hold US dollars as reserves, advocating gold as the historical and secure reserve asset.
As BRICS countries strengthen their gold reserves and reduce dependency on US dollars, the global economic landscape faces significant shifts.
This move could enhance local currencies and economies within developing nations while challenging the supremacy of the US dollar in global trade dynamics.
After the long-awaited rate cut by the Federal Reserve, the crypto market started showing signs of recovery.
Federal Reserve meetings usually follow a predictable pattern, but this week’s Federal Open Market Committee (FOMC) gathering was shrouded in uncertainty.
At the Token2049 event on September 18, Arthur Hayes, co-founder of BitMEX, warned that upcoming interest rate cuts by the U.S. Federal Reserve could trigger a major downturn in the crypto market.
Cryptocurrency investors are closely watching the Federal Reserve’s interest rate decision set for tomorrow.