Silver Breaks Out as BRICS Buys

Since the 1970’s, no nation has added to their strategic silver reserves… until yesterday.

The highly anticipated 3-day BRICS summit hosted by Russia ended yesterday. Leaders from all over the country weighed in their support to this new allegiance that is anti-US dollar. At the end of the meeting, they announced 2 major things that will change what we know here in the US.

1)       Russia is adding physical silver to their reserves. This is an extremely remarkable development… Allow me to explain why.

Since the 1970’s, there hasn’t been a single nation that has added physical silver to their reserves. To put into perspective, the United States sold off almost half of their entire reserves throughout the 70’s.

Russia is isolated from the Western nations. Within this new BRICS+ alliance, Russia’s influence and persuasion cannot be argued. They have played a leading role in building an alternative to the dollar-based trading and monetary system.

Here’s why I think this is important: With Russia’s influence on the other following nations, I think there is a very plausible chance the remaining BRICS countries will follow Russia’s lead and begin to bolster up their own silver reserves. Is it a coincident that silver is up 10% in a single week? I don’t think so, but I believe this is just the beginning.

2)       The BRICS countries are coming out with their own gold-backed currency to compete and eventually surpass the US Dollar. According to multiple sources, this “unit of exchange” will be pegged 40% to the value of gold and 60% to a basket of BRICS currencies.

BRICS members are simultaneously buying gold with other central banks around the world.  They have been accumulating gold at a pace we have never seen before. In addition, worldwide central banks have been repatriating their gold to store it themselves.

As an advisor, what does this mean to me and my clients? It’s simple: The BRICS nations represent nearly 80% of the world’s population. A new gold-backed currency would address the concerns of countries that are rightfully worried about the weaponization of the USD. This type of system would eliminate the need of the USD and would send all those dollars back to our shores resulting in the currency becoming worthless.

The silver market is a fraction of the size of the gold market and if (when) other nations follow suit, this could create a massive problem finding any leftover silver to purchase.

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