Russia, China and BRICS: A New Gold Trading Network

As the Russian central bank continues to aggressively accumulate its official gold reserves, and Russia and China spearhead a plan to create a cross-border gold trading system between the BRICS nations, it seems clear that there are significant changes on the horizon for the global gold market.

Given that the 5 BRICS members of China, India, Russia, Brazil and South Africa are a combined powerhouse in gold production, gold consumption, official central bank gold reserves, and in-ground gold resources, any new gold price benchmark that would arise from this new BRICS gold trading system would undoubtedly align gold pricing towards the world’s largest physical gold markets, and away from the synthetic gold derivatives markets that current dictate international gold prices.

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