Gold: BRICS' Financial Armor

The BRICS economic alliance has continued its ongoing strategy of stockpiling gold in increasing quantities. Indeed, the collective has sought to increase its gold holdings, with China currently on a 17-month purchasing streak.

The increased holdings of the metal by the collective should only increase its value. Throughout the year so far, gold has been surging in price. It most recently reached an all-time high last month, when it reached $2,431. Those prices should only increase as central banks show no sign of slowing down their purchasing practices.

BRICS Gold Acquisition Continues in Record Numbers

Throughout the last year, the BRICS economic alliance has driven a global shift. Specifically, this has been rooted in collective de-dollarization practices, which have manifested more so in its diversification efforts. Subsequently, many of those have been shared by other central banks.

Yet, that doesn’t appear to be slowing down any time soon, as the BRICS bloc continues to stockpile gold in record numbers. Additionally, the acquisition strategy of these countries may only increase amid these efforts.

China, in particular, has been leading gold demand, which has equated to increasing prices. Speaking to the New York Times, Metalsdaily.com chief executive Ross Norman discussed the nation as the catalyst for increasing gold prices this year.

“China is unquestionably driving the price of gold,” Norman told the publication. “The flow of gold to China has gone from solid to an absolute torrent.” Moreover, the People’s Bank of China (PBOC) is currently in the midst of a 17-month gold acquisition streak.

This increasing acquisition process has only driven global demand for the asset. Moreover, as the stash of available gold begins to diminish, that value should only be set to increase. If China’s demand doesn’t slow down, the selection of gold that is willing to be sold could be further diminished.

Morgan, like others, has predicted that this process will drive the gold price to above $2,500 in 2024. Additionally, it is beginning to change the realities of gold value increase to methods not seen since before Bretton Woods. The national interest in the metal has never before been seen, and with so many geopolitical concerns, it may forever change how nations perceive gold purchasing and diversification.

This article originally appeared on Watcher.Guru