The impact of BRICS currency initiatives on gold and silver

In the latest episode of Live from the Vault, Andrew Maguire provides a compelling analysis of how BRICS’ recent currency initiatives are reshaping the landscape of precious metals.

This deep dive explores the strategic movements among major global economic players, particularly as they pivot away from the US dollar and embrace a more multipolar financial system.

Market Landscape and US Election Influence

The episode begins by addressing the anticipated influence of the upcoming US elections on gold and silver markets. As November futures contracts approach their delivery period, Andrew offers immediate price expectations and discusses subscriber queries regarding market sentiment.

Insights from the BRICS Summit

Andrew sheds light on the misinformation surrounding the BRICS summit and reveals insider perspectives from Sino-Russian sources. The discussion focuses on how the summit’s outcomes are set to influence gold and silver prices, emphasising the shift towards de-dollarisation and the emerging financial power dynamics favouring physical gold and silver as safe-haven assets.

Futures Contracts and Market Manipulation

The episode delves into the complexities of futures contracts, particularly the recent delays by banks in settling October contracts. These tactics, aimed at suppressing prices for cash settlements, have significant implications for the market. Speculators shorting silver are facing severe losses as premiums on spot prices rise, highlighting the current volatility in precious metals.

Evidence of Market Tightening

Andrew notes a notable disconnect between the paper and physical markets, particularly with increasing premiums in October contracts. With substantial deliveries due in November and December, there is mounting pressure on banks to fulfil these contracts, potentially leading to a pivotal month for both gold and silver prices.

The Global Financial Shifts Post-BRICS Summit

The outcomes of the BRICS Kazan Summit are pivotal, showcasing the bloc’s dedication to a new currency system that reduces dependency on the dollar. Notably, the launch of a gold-backed currency mechanism is set to enhance trade between sanctioned nations. Furthermore, over 60% of low-income nations are utilising blockchain technology to engage in sanctioned trade, allowing them to price commodities, including precious metals, directly in gold.

Strategic Moves by China and Russia

Andrew discusses the strategic efforts of China and Russia to establish currency independence and support gold-backed trade. A significant network of liquidity providers is poised to facilitate these changes, with major rollouts expected in the coming months.

Gold as a Benchmark

As nations increasingly secure their dollar assets with gold, the metal’s role as a benchmark and hedge grows more pronounced. The shift away from dollar-denominated pricing is prompting substantial dollar outflows into gold, positioning it as a critical asset for central banks and commodity trading advisers.

The Future of Precious Metals Pricing

With BRICS nations dominating 85% of global commodities trade, Andrew concludes that this multipolar alliance is well-positioned to set new standards for gold as a financial asset. Liquidity assessments suggest that gold prices could rise to as high as $3,000, driven by ongoing demand and geopolitical pressures.

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The opinions, analyses, and predictions expressed by Andrew Maguire in this content are his own and do not represent the views, positions, or official policies of Kinesis. 

This information is provided for informational purposes only and should not be considered financial advice. 

Kinesis assumes no responsibility for any investment or financial decisions made based on the information provided. Please consult with a qualified financial advisor for personalised guidance.