BRICS member Russia dumped 300,000 ounces of gold in January when the precious metal hit a record high of $5,500 and made more than $1.68 billion, the latest data from the Central Bank of Russia (CBR) shows. CBR now holds close to 74.5 million ounces in its reserves and is the first ever sale since October.
Russia and other BRICS countries have been buying gold at a record pace since 2022 after the US sanctions. Countries such as China, India, Brazil, and South Africa lead the race in the accumulation. The World Gold Council reported that the alliance is the biggest buyer of the metal for two years straight.
Gold prices are up more than 75% in a year making BRICS members’ portfolios soar to record highs. Russia, China, and India have doubled their investments in gold as the accumulation began from 2022. The purchases became a way for Russia to keep its economy afloat despite the sanctions.
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BRICS Members Buying More Gold for Four Years
Speculations were rife that BRICS members are accumulating gold to back their new currency. However, the formation of a new currency has been called off as it requires extensive work. The alliance is not prepared for the shift as each member is financially diverse with different ideologies. While Russia, China, and Iran wanted a new currency, India and South Africa were backing out.
The BRICS countries’ non-stop procurement of gold is among the reasons for the glittery metal to soar in value. This led retail traders to invest in the commodity and made quicker returns than they had imagined. Local coin shops in the US experienced a flurry of 1-gram gold and silver coins from average Americans who purchased them on Costco and Walmart shelves. Institutional funds also went towards the metal for safety due to Trump’s aggressive tariffs and trade wars.
