Hi,
The long awaited 2023 BRICS Summit has now come and gone, and the 15th summit may have been the most impactful ever to take place with the announcements that were made. The largest announcement that was made was that BRICS would be officially expanding for the first time since this alliance was formed in June of 2009. Out of the 40 countries that were hoping to be granted access to this exclusive group, it was Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE) that were invited to join. With this becoming official after a wait that was shroud with such high anticipation – this new group of nations makes BRICS an absolute commodity powerhouse, and one that should be feared by Western and European nations that have controlled them for so long via financial sanctions and threat of war.
Of course, many were hoping there would be an announcement of a gold-backed mutual currency that would directly take on the United States Dollar (USD) in world trade, and while that was not the case, the announcement that was made from a strategic standpoint arguably puts BRICS on a far better path to achieve the dominance this bloc of nations is looking to achieve. If a gold-backed currency were announced this week, it would be a direct threat of war as it would be clear BRICS nations were gunning for the United States and their financial dominance over the world. However, by announcing this group of nations would be asking their central banks and financial ministers to look deeper into trading with their local currencies amongst each other, the USD will more likely see a scenario where it goes through a death by 1000 cuts. The reason for this, is because the newly expanded BRICS Alliance has such an astounding level of control over world commodities that are necessary for each nation to function, and if the trade between these countries no longer relies on the purchase of USDs, the ability for the United States to flex its muscles via financial sanctions will be taken away. Once the USD is no longer used to the degree it once was, this is when there will be an opening for an announcement of a mutual currency or a basket of commodities to be traded between the BRICS countries that can also be pegged to gold.
The reason the announcement of expansion far outweighs the importance of a gold-backed mutual currency at this time, is what this expansion means for the control of global commodities. Looking at the now group of 11 countries within BRICS, they now control 36% of the entire world’s GDP along with housing 47% of the world’s population. This also sets the BRICS Alliance to control just under 40% of the world’s oil reserves, with Saudi Arabia, Russia, China, the UAE, Brazil, and Iran all in the top 10 of oil producing countries on an annual basis; that is 6/10 of the top 10 countries. Remember, the dominance of the USD is fuelled by the petrodollar deal the United States made with Saudi Arabia that their oil must be sold in USDs, however, we have seen recently that Saudi Arabia has been in talks with China to begin pricing oil in the Chinese Yuan, which would be a massive blow to the USD. It was also stated by Saudi Arabia at the BRICS Summit that they traded with Russia, China, India, South Africa, and Brazil to a tune of 160 billion dollars in 2022, a staggering number highlighting the already strengthening relationship between these nations.
Diving deeper, with the expansion of the BRICS Alliance, their control over gold reserves has also skyrocketed, as collectively they now hold 6080.68 tonnes of gold. As a group, this puts them just behind the United States as the 2nd largest holders of gold in the entire world, and this is also keeping in mind that the United States has not allowed an official audit of their gold reserves held at Fort Knox since 1953, this being before Nixon severed the gold standard in 1971 right in the midst of massive outflows of United States gold across seas leaving their total of 8133.46 tonnes of gold to be highly questionable.
When looking at silver reserves by country, collectively, BRICS now controls a majority of above ground physical silver, with a staggering 129,700 tonnes of silver in their control as of 2022. Keeping our direct comparison to the United States going, the United States holds only 23,000 tonnes of silver, putting BRICS nations ahead by over 100,000 tonnes. Mind you, next to oil, silver is the most widely used commodity in the world, giving BRICS a stranglehold over the two most important assets the world has today.
To finish this newsletter off with the most staggering number of all, coming from a study done by Statista, the BRICS Alliance has a jaw-dropping 181.5 TRILLION DOLLARS worth of natural resources within their borders. Even though this number is estimated, it is still hard to ignore the incredible natural value held by BRICS nations. Furthermore, that number only looks at the top 10 nations in the world, which included Russia (#1, $75 trillion), Saudi Arabia (#3, $34.4 trillion), Iran (#5, $27.3 trillion), China (#6, $23 trillion), and Brazil (#7, $21.8 trillion). Which means, only 5 of the 11 countries within BRICS is included in the 181.5 trillion dollar total. The commodities produced by these nations includes oil, coal, natural gas, gold, timber, rare earth metals, copper, silver, zinc, phosphate, iron ore, lead, chromium, rice, wheat, platinum, uranium, tin, and much, much more.
As you can see, the newly formed BRICS Alliance is putting a major emphasis on securing a large portion of world commodities ranging from food, to energy, to industrial metals, all the way to sound money in the form of all three of the major precious metals, gold, silver, and platinum. Remember, fiat currency is completely useless as a commodity if people realize as a whole that it only has value because governments tell us they do. If you wish to begin securing yourself the way a major portion of the world is doing so, AU Bullion is here to help you do so. Below you will find some of the best products we currently have available for securing your wealth at a great premium!
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