Kitco News reported that Russia has proposed that BRICS member countries establish their own precious metals exchange in a move that could reverse long-standing international pricing mechanisms for gold, silver, platinum and other precious metals.
This news appeared right after the leaders of the BRICS countries approved on October 23 to support the increase of precious metal exchanges between members on the basis of common product quality standards.
On October 24, the Russian Finance Ministry issued an official announcement. "The establishment of a metal trading mechanism among BRICS countries will help shape fair and equal competition based on exchange principles," the Russian oreanda news agency quoted the Russian Ministry of Finance as saying.
Russian Finance Minister Anton Siluanov said that this mechanism will include the creation of gold price indicators, standards for the production and trading of bullion, recognition of market participants, clearing and auditing in BRICS countries.
The Finance Ministry added that it expects the BRICS precious metals exchange to become the key manager of precious metals prices.
BRICS currency is guaranteed by gold
Andy Schectman, Chairman and Owner of Miles Franklin Precious Metals, told Kitco News in a recent interview that the BRICS summit could accelerate the global financial reset process, could see gold revalued at up to $150,000 an ounce.
According to one report, the BRICS currency will be anchored at 40% of the value of gold and 60% in the BRICS national basket. It is designed as an non-political currency, addressing countries concerns about the possibility of weaponizing the US dollar.
Schectman called it an acceleration of the de-dollarization movement and towards a new system, which could actually be guaranteed by gold.
BRICS members, along with other central banks around the world, have been accumulating gold at near-record levels for many years. In addition, central banks around the world have also repatriated gold for storage within their borders.
Schectman outlines four scenarios for a potential global financial reset, and one scenario for a re-evaluation of gold prices.
"Supporting that US gold reserves exceed 8,000 tons, which have not been audited for a long time, is just by re-evaluating gold at the balance sheet of accounting with repayable debts with our current higher assets."
In this case, its another game, Schectman said. "You value gold at $150,000 an ounce. It sounds crazy, but your balance sheet is now completely clean.
Schectman commented: "Gold will reach a price that no one thought possible, it will be anchored to a new system and never fall".
