Russia has proposed that BRICS member countries create their own precious metals exchange in a move that could upend the long-established international pricing mechanisms for gold, silver, platinum, and other precious metals.
The news comes on the heels of Wednesday’s declaration adopted by the leaders of the BRICS countries supporting an increase in the exchange of precious metals between members on the basis of common product quality standards.
On Thursday, the Ministry of Finance of the Russian Federation made their own official announcement.
“The creation of a mechanism for trading metals within the BRICS countries will lead to the formation of fair and equitable competition based on exchange principles,” the Ministry said in a release, according to Russian news service Oreanda.
“The mechanism will include the creation of instruments for price indicators for metals, standards for the production and trade of bullion, accreditation of market participants, clearing and auditing within the BRICS countries,” said Russian Finance Minister Anton Siluanov, “and the participating countries will have a reliable way of stable exchange trading within the association.”
The Finance Ministry added that they expect the BRICS Precious Metals Exchange “will become a key regulator of prices for precious metals.”
Gold-backed BRICS currency
Andy Schectman, President and Owner of Miles Franklin Precious Metals, told Kitco News in a recent interview that this week’s BRICS summit might hasten a global financial reset that could see gold revalued at up to $150,000 an ounce.