BRICS Weaponizes Gold to Shatter Dollar Dominance and Reshape Global Power

Forget digital—the real power play is turning physical. A bloc of emerging economies is making a hard pivot, betting on the oldest store of value to rewrite the rules of global finance.

The Golden Gambit

They're not just buying bars; they're building a system. By backing trade and new financial instruments with bullion, this coalition is constructing a parallel architecture. It’s a direct challenge to the currency that has underpinned everything—from oil deals to international debt—for decades.

Why This Isn't Just Another Reserve Shift

This move cuts deeper than diversification. It's a strategic bypass of traditional channels, aiming to insulate member economies from external monetary policy shocks and sanctions. The goal? To turn economic weight into geopolitical leverage, creating a bloc that can operate on its own terms.

The Ripple Effect

The implications are seismic. A successful shift could permanently dent demand for U.S. debt instruments, alter global capital flows, and force a rethink of what constitutes a 'safe' reserve asset. It signals a fragmentation of the financial world order, where power is no longer centralized but distributed among competing systems.

In the end, it’s a stark reminder that while Wall Street obsesses over quarterly earnings, the real game—the one that redefines centuries of financial hegemony—is being played with a much older set of pieces. Talk about a gold standard for ambition.

How BRICS Gold Challenge Dollar And De-Dollarization Strategy Shapes Power

Gold Reserves Drive Strategic Independence

The BRICS countries, along with partners like Kazakhstan, Iran, and Uzbekistan, control about half of global gold production right now. Between 2022 and 2024, central banks bought over 1,000 tons of gold each year—a record that shows how gold reserves accumulation has become a key part of monetary policy. Brazil started buying again in September 2025, picking up 16 tons after a break since 2021, while Russia’s sitting on 2,336 tonnes and China has 2,298 tonnes stashed away.

Physical gold is replacing paper assets in central bank playbooks across BRICS nations at the time of writing. Together, they hold more than 6,000 tonnes—that’s around 20-21% of all central bank gold worldwide—which gives them leverage to cut dollar ties and boost their financial independence. Analysts say it’s not just the quantity that matters, but also the trust and long-term influence these reserves bring.

Frank Giustra, a prominent mining investor, had this to say at the Precious Metals Summit:

BRICS Common Currency Tests Dollar Alternative

On October 31, the bloc launched a prototype currency called “Unit,” backed by 40% physical gold and 60% national currencies of member states. Each Unit was pegged to 1 gram of gold, establishing a tangible benchmark for inter-bloc trade settlements outside dollar systems. This marks a concrete step toward implementing a BRICS common currency that many analysts predict could launch fully in 2026. Right now, the BRICS gold challenge dollar efforts through the Unit represent one of the most ambitious attempts to create an alternative to the existing monetary order.

Russia and China now settle approximately 90% of bilateral trade in local currencies, bypassing dollar transactions entirely. Russian President Vladimir Putin confirmed at recent forums that Russia’s national currency settlements with other BRICS countries reached 90% in 2024, demonstrating the de-dollarization strategy is already being implemented at scale. At the 2024 BRICS Summit, Putin stated:

Putin also emphasized caution during his December 2025 India visit, stating:

Russian Foreign Minister Sergey Lavrov clarified that the BRICS gold challenge dollar approach doesn’t aim to replace the dollar outright but rather to settle trades using national currencies backed by gold reserves. This multi-currency framework preserves monetary sovereignty while enabling trade across BRICS economies without dollar exposure.

Building Financial Infrastructure Beyond dollar hegemony

The gold reserves accumulation strategy supports broader infrastructure development aimed at circumventing Western financial systems. BRICS nations are developing payment platforms, including the mBridge digital currency pilot launched by China, Hong Kong, Thailand, the UAE, and Saudi Arabia, which enables settlements in local currencies rather than dollars. Along with this, the Shanghai Futures Exchange introduced T+0 settlement in March 2024, offering instant trades that challenge paper-based markets and establish direct gold trading hubs independent of Western exchanges.

The World Gold Council stated:

Gold prices have actually surged over 40% in 2025, outperforming major assets and also reaching new highs as BRICS buying pressure tightened supply at the time of writing. Various major financial institutions, including Goldman Sachs, have architected forecasts demonstrating gold could approach $5,000 per ounce if just 1% of privately-held U.S. Treasuries were allocated to the metal. This price movement reflects how the BRICS gold challenge dollar initiative is already influencing global markets, even before a BRICS common currency is fully operational.