The gold rush of the BRICS countries

06.05.2024

The Monthly Metals Index (MMI) steadily grows by 8.25% each month. April surprised with an even greater jump in the price of gold—a significant strengthening driven by several factors.

As investors seek to protect their portfolios from inflation amid expectations of interest rate cuts and geopolitical uncertainty, interest in gold continues to rise. The BRICS countries, especially Russia and China, lead this “gold rush,” actively encouraging other participating nations.

Recent record highs in gold prices signal a new era, yet the formation of higher lows indicates increasing market volatility. This bullish momentum has pushed prices above 2020 levels.

Gold possesses a unique combination of liquidity, yield, and stability, making it an attractive investment during economic instability. This has piqued the interest of not only investors but also central banks, especially in developing countries.

China continues to confidently increase its gold reserves for 18 consecutive months, underscoring the metal’s importance in the modern financial world and striving to inspire other BRICS countries to follow suit.

As BRICS countries consider transitioning from the US dollar to a gold-backed alternative, the “gold rush” is expected to continue, signaling a global shift in currency dynamics. Time favors gold, and this metal occupies a central place in the economy of the future.

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