According to a foreign embassy serving as a source for a Russian state-run media channel, there are growing speculations and reports suggesting that the BRICS nations (Brazil, Russia, India, China, and South Africa) are planning to introduce a new trading currency backed by gold in the near future.
Ongoing claims are that an announcement is expected to be made during the BRICS summit this coming August 22-24th in South Africa.
Yet this same week, the BRICS Bank Vice President and acting CFO, Leslie Maasdorp, publicly stated on Bloomberg that the group doesn't have any immediate plans to create a common currency (Source).
Eight months in a row now China has added official gold to her reserves, adding 21 tons in June 2023 bringing its official sum to now 2,113 metric tonnes. Of course China also holds a lot of unofficially not yet reported gold bullion reserves with its military and state run banks and sovereign wealth funds.
Throughout this 21st Century and especially since the 2008 global financial crisis, physical gold bullion exports have increasingly gone east to major developing economies like those of India and China, key leading nations in the BRICS. As well, Russia, Turkey, and other nations BRICS aligned are major players in the modern physical gold world.
So it makes sense that the BRICS may want to have a major settlement currency unit to help in developing a more multipolar world order ahead.
Best selling author, Jim Richards, has been perhaps the most vocal BRICS going to gold shot caller in the world, and here are a few highlights of him on London Real speaking on the coming late August summit.
A little bit of strength for the week in the monetary precious metals futures and derivative trading markets.
The spot silver price closed above $23 oz for the week, while the spot gold price finished above $1,925 oz bid.
The spot gold silver ratio gyrated lower to finish this week at 83.
Bloomberg admitted to its western readers a few key industrial drivers for rapidly increasing silver solar demand recently.
Since the pandemic demand outstripping supply has been at historically high figures.
And since the start of this year especially the demand for silver going into solar panels requiring more silver paste per panel has been a key driver of increasing silver demand in China, and despite India being basically gone thus far in the year.
The physical silver sucking sound is still happening in the east, it is merely for solar panels in China mainly.
Data for 2023 from the Shanghai Silver Futures exchange shows exactly that, massive industrial silver bullion bar demand on that side of the world often heading into silver heavy solar panels.
On the gold side of the current situation, the story is similar to silver.
Those who like buying gold bullion when spot prices are relatively low compared to only a few months ago.
And considering where historically gold bottoms before making the 2nd half of the year runs.
Now is likely also good timing to be adding to your respective bullion reserves and wealth positions.
That is all for this week's SD Bullion Market Update.
As always to you out there.
Take great care of yourselves and those you love.
