Expanding BRICS Will Shift the Global Financial Landscape

• BRICS Will Change The World… Slowly
• 200 Years of Global Gold Production, by Country
• First ever filming of Singapore’s Gold Reserves in Super-Secret Gold Vault

Image: Bullionstar, 1 tonne of gold bars

BRICS Will Change The World… Slowly

Zerohedge, 25 Sept 2023

This article discusses the historical significance of the BRICS (Brazil, Russia, India, China, South Africa) and their expansion into BRICS 11 by welcoming new members (Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates) by January 1, 2024. The author explores the economic strength of BRICS 11 compared to the G7, emphasizing the importance of considering purchasing power-adjusted figures.

The article traces the origins of BRICS and highlights the economic and geopolitical power it represents. It delves into the history of the global financial system, particularly the dominance of the U.S. and the creation of the Petrodollar system, which tied oil trade to the U.S. dollar. This system allowed the U.S. to accumulate significant deficits and influence global economics.

The author argues that the U.S. used the Petrodollar system as a geopolitical tool, imposing sanctions and using force to maintain its dominance. Examples of this include the Iraq War and the fate of leaders like Saddam Hussein and Muammar Gaddafi, who challenged the Petrodollar system.

The article suggests that recent events, such as the freezing of Russia’s Central Bank assets, have triggered concerns among BRICS nations, particularly China and India, that they could face similar actions in the future. This, in turn, has accelerated the process of de-dollarization and the shift away from the U.S. dollar in international trade.

The author concludes by discussing the potential consequences of BRICS 11’s actions, including reduced demand for the U.S. dollar, higher interest rates, inflation, and a further debasement of the U.S. dollar. While the demise of the Petrodollar and the U.S. financial hegemony is predicted by some, the article acknowledges the uncertainty of the timing and speed of this trend, emphasizing that it may take time for such significant shifts to occur in the global financial landscape.

200 Years of Global Gold Production, by Country

VisualCapitalist 24 Sept, 2023

This article delves into the intricate history of global gold production spanning two centuries. Despite gold mining being a practice that dates back thousands of years, a staggering 86% of all above-ground gold has been unearthed within the past 200 years, thanks in large part to the advent of modern mining techniques.

The article employs data sourced from Our World in Data to craft a compelling infographic, illustrating the evolution of gold production by country from 1820 to 2022. This visual representation vividly showcases how gold mining has transitioned into a progressively global endeavor over time.

The narrative takes us on a brief journey through the annals of gold mining, highlighting one of the most iconic gold rushes in modern history—the California Gold Rush of 1848. Triggered by James Marshall’s discovery of gold in the Sacramento Valley, this event spurred a mass migration of fortune-seekers to California, ultimately resulting in the extraction of approximately $2 billion worth of gold by 1855.

The price of gold has been steadily climbing since the 1980s, precipitating an expansion of global gold production. By 2007, China had emerged as the world’s leading gold-producing nation, with more than 40 countries actively participating in gold mining. In 2022, approximately 31% of the world’s gold production hailed from just three countries: China, Russia, and Australia, each contributing over 300 tonnes of the precious metal.

The article also provides insight into the future of global gold production. Gold prices have been hovering around the $1,900-$2,000 per ounce mark, nearing all-time highs. For mining companies, higher gold prices can translate into increased profits per ounce, assuming production costs remain stable. According to the World Gold Council, mined gold production is expected to rise in 2023, potentially surpassing the record set in 2018, driven by the expansion of existing projects in North America. The possibility of achieving record mine output becomes more likely if gold prices continue their upward trajectory.

First ever filming of Singapore’s Gold Reserves in Super-Secret Gold Vault

Bullionstar.com, 31 Aug 2023

In a recent documentary by CNA, Singapore’s gold reserves were revealed in a super-secret gold vault. The documentary featured BullionStar’s CEO, Luke Chua, who used visual aids to demonstrate the vastness of Singapore’s gold reserves.

Access to the Monetary Authority of Singapore’s (MAS) secret gold vault was granted for the first time, and it was disclosed that over half of Singapore’s official gold reserves are stored there. MAS currently holds 225.4 tonnes of gold, making it the 24th largest sovereign gold holder worldwide. Remarkably, between April and May 2021, MAS acquired 26.4 tonnes of gold bars, followed by an additional 73.6 tonnes between January and July 2023. This rapid accumulation amounted to a 77% increase in Singapore’s gold reserves compared to early 2021.

Despite its substantial gold holdings, the value of which is approximately SGD 18.8 billion, these reserves represent less than 5% of MAS’s total reserve assets, which are valued at around SGD 400 billion. This includes holdings of securities, such as bonds and stocks, as well as foreign currencies, all managed by the Monetary Authority of Singapore.

The location of Singapore’s secret gold vault remains undisclosed, with possibilities ranging from government-owned buildings to secure military or police bases. The vault is rumored to be guarded by members of the elite Singapore Police Force Gurkhas, known for their world-class security services. The documentary provided a glimpse inside the MAS gold vault, where the footage revealed an estimated 128 tonnes of gold bars. This likely indicates that the gold shown in the video comprises the historical 127.4 tonnes of gold acquired by Singapore many years ago.

Notably, the gold bars displayed in the footage were identified as originating from South Africa’s Rand Refinery, which is significant as Singapore’s initial gold purchase in 1968 involved buying 100 tonnes of gold from South Africa. The documentary raised questions about the whereabouts of the more recent 98 tonnes of gold purchased by Singapore’s central bank between 2021 and 2023. It speculated whether these bars were still in London or had been repatriated to Singapore.

The documentary also featured Luke Chua, who emphasized the enduring value of gold, particularly in times of crisis, highlighting Singapore’s shrewd investment in gold since its purchase in 1968.