BRICS member China has been the top purchaser of gold since 2022 and is accumulating tonnes every month. The World Gold Council reported that China is inspiring other BRICS nations to buy the precious metal as reserves and not the US dollar. China has accumulated more than 300 tonnes of gold worth $561 billion in the last 18 months alone.

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Financial commentators speculate that China along with BRICS are procuring large amounts of gold to topple the US dollar. According to the speculations, BRICS and other developing countries are waiting for a recession to hit the US. The idea is to offload US dollars from their reserves and buy gold as a safety net against a recession.

BRICS: Gold To Be Used To Topple the US Dollar?

If gold dominates their reserves and not the US dollar, their native economies will not be affected by a recession. Their economies will dodge the bullet by keeping gold as reserves as the US dollar is spiraling with debt. Therefore, BRICS could be using gold to protect their native economies and currencies from the damage the US dollar might do during a recession.