Inquiry concerning gold reserves
In a significant move towards financial sovereignty, central banks worldwide, including those of Russia and the BRICS nations, are actively repatriating gold reserves and increasing gold holdings[1][2][5]. This trend, part of a broader de-dollarization strategy, aims to reduce reliance on the US dollar and enhance monetary independence amid geopolitical tensions.
The gold repatriation wave reflects concerns about the vulnerability of gold stored abroad to geopolitical and economic risks, including sanctions and financial warfare[2][5]. Central banks, led by Russia and China, have been increasingly buying gold, with many BRICS countries actively expanding their reserves. Collectively, central banks hold over 36,000 tonnes of gold by mid-2025, accounting for roughly 20% of all gold ever mined[1].
The increased gold holdings serve as a hedge against dollar depreciation and as a form of monetary diversification. Gold provides physical monetary sovereignty, potentially backing future national or regional currencies and supporting new financial arrangements beyond the dollar-dominated system[2].
Heightened geopolitical tensions and concerns over US dollar dominance have accelerated these moves, as countries in BRICS and other regions seek to insulate their reserves from US influence and sanctions[2][5]. Central bank gold purchases are supporting a multi-year bull market for gold, with prices testing significant levels around $3,300/oz in 2025, and forecasts projecting substantial upside due to structural demand from official buyers[3].
Official gold demand by central banks has exceeded 1,000 tons for the third consecutive year, while global demand for gold bars and coins has increased by 11%. Notably, Iran has successfully weathered Western sanctions for 46 years by betting on gold, with Tehran purchasing over 100 tons of gold worth $8 billion last year, representing 11% of the country's total imports[5].
The European Union has committed to invest $600 billion in the US under a recent tariff deal, while the US tariff pressure on Brazil and India has been a significant stimulus for de-dollarization. The potential transformation of the international financial system could reveal secondary sovereignty to the American one[2].
In the midst of this, the US administration under Donald Trump came to power with a mandate to ensure the monetary stability of a country that has been living beyond its means for decades. However, Trump's policies, such as the annexation of Greenland and absorption of Canada, indicate a potential threat to property rights, making real estate investments less appealing[4].
Meanwhile, US allies are being asked to invest in the American economy, effectively being considered as an American sovereign investment fund at the discretion of the US President. The conflict between the West and Russia over Ukraine has been used as a demonstration of the use of the dollar as a weapon and the trade-economic interdependence established over 40 years of globalization[6].
In summary, gold repatriation and accumulation by Russia and BRICS central banks represent a strategic pivot towards reducing dollar dependency, enhancing financial sovereignty, and preparing for potential shifts in the global monetary system. These actions reinforce gold’s role as a foundational asset in the ongoing de-dollarization process[1][2][5].
References: 1. Deutsche Welle 2. The Economist 3. Kitco News 4. CNBC 5. Financial Express 6. The Diplomat
Central banks, including those of Russia and the BRICS nations, are not only repatriating gold reserves but also increasing their gold holdings as a hedge against dollar depreciation and as a form of monetary diversification [1, 2, 5]. With many of these countries actively expanding their gold reserves, they are investing significantly in real-estate, gold, a potential foundation for future national or regional currencies and supporting new financial arrangements beyond the dollar-dominated system [1, 2].
