As geopolitical tensions escalate and trust in the dollar is tested, the BRICS nations are accumulating gold at rates that are shifting the global balance. This is not a sudden rupture, but a silent, structural shift challenging the hitherto undisputed monetary regime, notes an analysis by Mint.com.
BRICS and the shift from the dollar to gold
The BRICS, the powerful economic bloc of emerging economies consisting of Brazil, Russia, India, China, and South Africa, are rapidly moving away from their dependency on the U.S. dollar, turning instead to gold accumulation. Although officially BRICS nations hold about 20% of global gold reserves, together with strategic allied states that are not members of the bloc, they now control nearly 50% of global gold production.
Russia and China at the forefront
Russia and China are leading this strategy. In 2024, China produced 380 tonnes of gold, while Russia produced 340 tonnes. Following this line, in September 2025, Brazil purchased 16 tonnes of gold, marking its first purchase since 2021.
Anuj Gupta, Director at Ya Wealth, explains that the BRICS countries are implementing a dual strategy: they are producing more gold, selling less, and simultaneously buying from international markets. According to available data, between 2020 and 2024, BRICS central banks purchased over 50% of the world's gold—a development that, as he notes, U.S. President Donald Trump likely would not want to hear.
What lies behind the BRICS "dual strategy"
Analyzing this strategy, Sachin Jasuja, Head of Equities at Centricity WealthTech, points out that the increasing control of gold reserves by BRICS nations is a clear signal of pressure on the dollar-dominated global financial system. Although the dollar remains the primary global reserve currency, recent developments show its absolute dominance is being challenged gradually, not abruptly.
Today, the BRICS economies represent nearly 30% of global trade, making their monetary choices globally critical. A strategic goal of the bloc for years has been to reduce reliance on Western financial infrastructure and specifically the dollar, both for trade and reserve management.
The war in Ukraine as a catalyst
Jasuja underlines that the decisive shift in thinking came after the Russia-Ukraine war, when Western governments froze a large portion of Russian foreign exchange reserves. This event radically changed how states perceive the security of their reserves, proving that dollar-denominated assets and funds in foreign jurisdictions carry serious geopolitical risk. Since then, reserve management has prioritized assets that are politically neutral, physically secured, and beyond external control.
Gold instead of the dollar in trade
The central banks of the BRICS are now among the most aggressive gold buyers worldwide, with China, Russia, and India being among the largest official holders. The proportion of gold in their foreign reserves is steadily increasing, while exposure to dollar assets is decreasing marginally. This development coincides with a strong and sustained rally in gold prices, reflecting not just a hedge against inflation but also intense demand from official institutions.
At the same time, the BRICS are actively reducing their dependency on the dollar in trade. About one-third of intra-BRICS trade is now conducted in local currencies, bypassing the dollar. Bilateral agreements, such as India-Russia and China-Brazil, reflect this pragmatic shift aimed at reducing transaction costs and exposure to sanctions.
What this means for the future of the dollar
Ponmudi R, CEO of Enrich Money, emphasizes that the growing influence of the BRICS in annual gold production does not imply immediate dominance over the global monetary system, but offers strategic flexibility through control of future supply. The acceleration of gold purchases is primarily a strategy of risk management and diversification.
As he points out, the real structural challenge concerns not only gold, but the petrodollar system, reshufflings in trade, and rising tariffs. China's strategy in electric mobility and renewable energy is part of a broader effort to redraw global trade and energy rules, reducing long-term dependence on dollar pricing.
The accumulation of gold by the BRICS does not signal the end of the dollar as the global reserve currency. It does, however, signal a credible and deep structural shift toward a more diversified and multipolar financial system, in which gold is quietly returning to its role as the ultimate foundation of monetary trust.
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