What the October 2024 BRICS Summit Means for Americans-and Our Dollars

As the BRICS coalition-Brazil, Russia, India, China, and South Africa-convenes for the October 2024 summit, talks about launching a new currency and challenging the U.S. dollar are intensifying. These moves could have major implications for Americans, particularly for those holding dollars. Understanding how BRICS is reshaping global trade and how gold and silver can help insulate your wealth in these uncertain times is essential.

What is BRICS? BRICS is an economic coalition representing five major emerging powers that together account for about 40% of the world's population and more than 30% of global GDP. Since its formation in 2006, the group has focused on creating alternatives to the U.S.-dominated financial system. Worryingly, their influence is growing. Here’s a timeline of significant events in the BRICs movement–a movement only recently making regular headlines, but several years in the making.

Key BRICS Moments:

• 2001: The term “BRIC” is coined by economist Jim O’Neill.
• 2006: BRIC is formally created as a political and economic alliance.
• 2010: South Africa joins, expanding BRIC to BRICS.
• 2014: BRICS launches the New Development Bank to challenge Western financial institutions.
• 2017: BRICS nations begin trading in local currencies, reducing reliance on the U.S. dollar.
• 2022: Countries like Argentina, Saudi Arabia, and Egypt express interest in joining BRICS.
• August 2023: BRICS invites Argentina, Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE to join, signaling its growing influence.
• October 2024: BRICS leaders discuss launching a new currency, potentially backed by gold, at the latest summit.

Will BRICS Be Backed by Gold? One major topic of discussion at the October 2024 summit is whether the new BRICS currency will be backed by commodities like gold. Some BRICS members, especially Russia, have been advocating for this. A gold-backed currency would provide greater stability and make it an attractive alternative to the U.S. dollar. If BRICS nations adopt such a currency, it could significantly weaken the dollar's global dominance.

Cuba’s Interest in Joining BRICS: One of the most recent developments involves Cuba. In October 2024, Cuba formally petitioned Russian President Vladimir Putin to join BRICS, signaling a significant geopolitical shift. If Cuba joins, it would bring BRICS' influence even closer to the U.S., as Cuba is a neighboring country. This adds to the growing momentum of BRICS and its potential to reshape economic dynamics in the Western Hemisphere. Cuba’s move further underlines how BRICS is becoming a serious contender to the U.S.-led financial system.

The Dollar Is Already Losing Ground: According to a recent report, in 2023, approximately 20% of the global oil trade was conducted using non-dollar currencies, a significant shift away from the U.S. dollar’s traditional dominance in the oil market. This marks a major development in the ongoing global trend of “de-dollarization,” driven primarily by countries within the BRICS bloc. With nations like Russia and China increasingly favoring local currencies, this movement is further evidence of BRICS’ growing influence on global trade and finance.

How a Weakened Dollar Affects Americans Holding Dollars: The BRICS summit discussions include reducing global reliance on the U.S. dollar, which could have serious consequences for Americans. If global demand for the dollar decreases-especially in oil trade, where countries like Russia and China are already moving away from using the dollar-the dollar's value could drop. This would lead to inflation and reduced purchasing power, directly affecting your savings.

When the dollar weakens, everything from groceries to imports becomes more expensive. For Americans holding dollars, this could mean your money doesn't go as far, and inflation could eat into your savings.

Why Now Could Be The Perfect Time to Buy Gold and Silver: As BRICS gains momentum and the U.S. dollar faces potential instability, holding your savings in gold and silver can be a smart move. Unlike most currencies that can lose value due to inflation or geopolitical shifts, precious metals tend to retain their purchasing power over time. You can hold gold and silver as part of your savings and liquidate them when you need cash. This strategy allows you to convert your wealth back into dollars while ensuring that your savings maintain their value during uncertain times.

While BRICS may take time to fully challenge the U.S. dollar's dominance, the shift is already underway, and the potential for the dollar to weaken is real. This is why now is the time to consider gold and silver, as their prices have been trending upward in 2024 and many experts agree they are likely to continue their upward trend. Investing in precious metals today could offer protection against future currency volatility and help preserve your wealth as these global changes unfold. Would you rather buy at today’s prices or potentially pay more for gold and silver when your dollars are even more vulnerable?