BRICS planned alternative gold market could mean severe consequences for not only Western control over gold, but also the dollar


by Kenneth Schortgen, The Daily Economist:

Many people forget that the original dollar reserve currency agreement in 1946 was based on a gold standard.  And it was only through the corruption of the U.S. government, as well as the desires of central banks to remove the metal from backing global currencies, that we reside in the debt fueled financial monstrosity we have today.

But through a combination of technological as well as geopolitical changes taking place over the past decade, there is a clarion call occurring that is seeking a way to return to the gold standard in some form or fashion.  And it may be coming from the coalition known as the BRICS, who’s planned gold trade platform could not only mean severe consequences to the West’s stranglehold over the gold markets, but could also put a dagger into the heart of the reserve currency itself.

The BRICS counties are considering starting an internal gold trading platform, according to Russian officials. When this happens, the global economy will be significantly reshaped, and the West will lose its dominance, predicts a precious metals expert. 

In 2016, 24,338 tons of physical gold were traded, which was 43 percent more than in 2015, according to Claudio Grass, of Precious Metal Advisory Switzerland. 

Gold moving from the West to the East 

“We have to put the BRICS initiative into a broader context. It is just part of a geopolitical tectonic shift which started decades ago. We have seen a constant outflow of physical gold from the West to the East. At the same time, the West has lost the economic war, and as a consequence, the focus now turns to the financial system. China dominates the world economy and has displaced the US as the world’s most formidable economic powerhouse,” he told RT. 

The creation of a new gold standard by BRICS is also a step to end the US dollar’s domination of the global economy 

“As Bejing and Moscow understand that America used the dollar to control the world, by implementing a new kind of ‘Gold standard 2.0’ they want to distance themselves from this control. Furthermore, the vast majority of the people in Asia sees gold as superior, or ‘real’ money, something the West has forgotten, because of all the paper wealth (credit) they have accumulated,” said Grass. 

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