My Gold News | 30 August 2023

A move back to the Gold Standard? Why is this important for investment gold?

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A move back to the Gold Standard? Why is this important for investment gold?

We’ve been writing for some time about de-dollarisation – the reducing importance of the US dollar as the world’s reserve currency. We’ve also been talking about a planned BRICS (Brasil, Russia, India, China and South Africa) gold-backed digital currency, led by Russia.

Both of these stories have been ‘running in the background’ for months, not gaining momentum.

Until last week.

A senior analyst and commentator, Simon Hunt, told Kitco this week that ‘the involvement of BRICS has been slow and deliberate and it’s a very serious attack on the US dollar, which has dominated the global economy since World War II’.

It’s now strongly rumoured that the launch of the gold-backed currency could be around the corner, coinciding with the August BRICS conference in South Africa. By the mid 2020’s it is planned that the new currency will be fully convertible back into gold, indicating a return to the gold standard.

But why is this important for the retail gold investor?

The prospects for gold look positive, given this news, and we expect to see an upward rise in gold prices over the coming year. With over 40 countries wanting to join BRICS, this initiative looks to gain momentum, driven by the continued Ukraine / Russian conflict and continued tensions with China.

According to Thorsten Polleit, Economist at Degussa, using gold as a unit of account could be a gamechanger and lead to a sharp devaluation of many FIAT currencies, vis-à-vis gold.

According to, Stefan Gleason writes that ‘the mere fact that gold is being considered by BRICS countries as a basis for international trade should incentivize central banks – and individual investors – to accumulate precious metals. If gold’s role as a global alternative currency is to increase, then so, likely, will its price’.

Contact MyGold today to secure your next gold purchase.   A few snippets:

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