About Eeyore

Canadian artist and counter-jihad and freedom of speech activist as well as devout Schrödinger's catholic

6 Replies to “Straightening the record on BRICS and a gold backed currency”

  1. I’m constant buyer of silver and gold (mostly coins) for myself and as such I keep a constant eye on the underlying prices and news on them both.
    From my observations:
    • BRICS gold backed currency isn’t in the works, if it was I/we would of seen a movement, over the last several days/weeks/months, in the spot price of both gold and silver and that hasn’t happened.
    • Yes, central banks have been accumulating more gold reserves but not to the extent that would be required for the backing of a currency especially for a country the size of Russia, let alone, plus some.
    • Russia (or in combo with other nations) doesn’t have the gold reserves already in existence to fully back a currency.
    • Could Russia back some and then “sell” it, then the new currency could continue to be backed as they have more buyers – sure that could work until full adoption but the market would notice as demand upon it increases.
    • I really think a small country (Singapore, Caymans etc) or state (Texas, FL) could adopt a gold backed currency successfully.

    It all gets pretty convoluted
    I hope it happens
    I wish more countries would be on the gold standard for it represents a tangible asset as opposed to the Monopoly money we are currently playing with.

    FYI: I have holdings in the following, in no particular order; currencies, crypto, stocks, bonds and metals (obviously) and I like them all for different reasons and the reason for metals is a store of value.

    • From everything I’ve been reading on this issue, gold as a BRICS currency isn’t in the cards, for now. Almost all of its trading partners prefer the currency of their choice, mostly in their own currency while some would be in yuan.

      And think of the infrastructure required to safeguard the gold. I’m reminded of America’s invasion of Lybia. Qaddafi died and all the gold amassed disappeared. Qaddafi did want a pan-African common gold currency.

      And finally, rumor mill has it there are looking at a common currency but, once again, not gold, and not for now.

  3. Omg. Firstly, the Russian tweet was a trial balloon. Get a grip. And as many good points this guy makes, he likes the sound of his own voice too much.

    The Russians and Red Chinese DON’T WANT the exorbitant privilege of the world reserve currency, contrary to what he says. This position is proven fraught with all the debt required to supply the world with currency units. It’s a debt trap.

    I started this day writing what I hoped was a durable position on this subject. Central Bank gold purchases in recent years trump all talk. After all, we don’t see them loading up on Bitcoin, do we?