BRICS Summit Could Usher in $150K Gold Era: Andy Schectman on Potential Global Currency Reset

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As a seasoned crypto investor with over two decades of experience navigating global financial markets, I find Andy Schectman’s insights both enlightening and potentially game-changing. Having witnessed firsthand the ebb and flow of various currencies and assets, I can attest that the shift towards a gold-backed currency system, as proposed by the BRICS nations, is not an unforeseen development but rather a logical evolution in our increasingly complex financial landscape.

Andy Schectman, head of Miles Franklin Precious Metals, recently chatted with Kitco News’ Michelle Makori about a possible worldwide financial overhaul that might cause gold to be valued at $150,000 per ounce. As per Schectman, this transformation could stem from the upcoming BRICS summit in Kazan, Russia, where nations will deliberate on substantial monetary adjustments. Schectman pointed out several ongoing de-dollarization tendencies, the creation of a new joint currency linked to gold, and the adoption of central bank digital currencies (CBDCs), all of which could significantly alter the global financial system’s structure.

Schectman underscored the potential vulnerability of the existing system, which heavily depends on the US dollar as the world’s primary reserve currency. He highlighted several signs suggesting an imminent change: poor management of the US dollar, the use of treasury as a weapon, and unprecedented gold hoarding by central banks. He elaborated on how countries within the BRICS alliance, such as through projects like mBridge and their pursuit of a new currency, are preparing to contest the dollar’s global influence in international trade. According to Schectman, these endeavors aim to decrease dependence on the dollar and establish alternative payment methods that would allow participating nations to trade without relying on the SWIFT system controlled by the US.

Schectman posits that this proposed currency, said to be supported by 40% gold and 60% national currencies, could potentially weaken the U.S. dollar’s status significantly. This development might provide BRICS nations and other countries with a means to conduct transactions and settle payments in a more decentralized and less politically influenced environment. The shift towards a gold-backed system by the BRICS nations might be perceived as a response to the growing devaluation of the dollar, caused by escalating debt in the U.S. As Schectman suggests, several countries have already started distancing themselves from the dollar, with some even prohibiting its use in domestic transactions. Moreover, central banks are reportedly increasing their gold purchases and decreasing their dollar reserves, suggesting a shift away from the dollar-dominated system.

According to Schectman, the BRICS countries aim not just to launch a fresh worldwide currency, but they’re also actively developing a potential global payment network that might challenge the established U.S.-dominated systems.

As a researcher exploring the realm of global finance, I find the idea of a gold-backed currency system proposed by Schectman intriguing. He posits that the Bank for International Settlements (BIS) has upgraded gold to a Tier 1 asset, placing it on par with U.S. dollars and treasuries. This action, coupled with the unusual surge in gold repatriation by various central banks globally, suggests to him that gold is being repositioned as a fundamental cornerstone in the international monetary system once more. If the BRICS countries were to successfully implement this currency system, it could potentially trigger a comprehensive overhaul of the global financial landscape, with gold playing a pivotal role in the new architecture.

Schectman also touched upon the possible effects on the US dollar. He cautioned that constant use of the dollar as a weapon, coupled with excessive printing of money and rising inflation, is undermining trust in the currency. He highlighted that U.S. government policies such as sanctions and overuse of the dollar for political purposes are driving countries to explore alternatives. As the BRICS nations and their allies move towards abandoning the dollar, Schectman forecasted potential economic difficulties for the U.S., including increased inflation and a possible decline in its status as the world’s primary reserve currency.

Apart from the larger political effects, Schectman also talked about the potential impact of gold being revalued to $150,000 per ounce on the U.S.’s financial situation. He explained that such a revaluation could significantly enhance the U.S.’s financial standing by using its increased gold reserves to counterbalance its debts. This, according to him, could offer the U.S. a way to regain some economic security, particularly as its debt levels persistently increase at alarming rates.

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2024-10-21 19:11