This is according to multiple experts who warn that BRICS' proposal to leverage the power of gold could end with these five nations beating the dollar.
Investment banker and author Jim Rickard noted that as inflation and devaluation continue to affect the U.S. dollar, the price of this new gold-backed BRICS currency would only keep rising.
"It's a way to destroy the dollar. You don't need dollars and you don't need gold. You just need to be smart enough to anchor your currency to gold," said Rickard. "And when dollar inflation starts to go up, your currency is going to be worth more because of how you pegged it, not to dollars, but how you pegged it to gold."
"BRICS nations announce gold-backed crypto. U.S. dollar will die. Trillions of U.S. dollars rush home. Inflation through the roof," warned celebrated author Robert Kiyosaki. (Related: Robert Kiyosaki warns of impending DOLLAR DEMISE amid BRICS group's gold-backed crypto plan.)
"This BRICS currency has a lot of implications that could absolutely crush the dollar," said Kevin DeMeritt, CEO of Lear Capital. "If this happens, it will be the biggest wealth transfer from one nation to another nation I think we've ever seen in the history of the world."
DeMeritt noted that once this currency gets rolled out to trade with BRICS nations – some of whom like China are major trading partners with the U.S. – the American government would need to buy more of the currency. These BRICS nations would then demand gold in exchange for their currency.
The amount of wealth that would change hands in this scenario – away from the U.S. and into the hands of the BRICS nations – would end up causing one of the largest wealth transfers in recorded history.
Gold prices surge as markets show excitement for gold-backed BRICS currency
The announcement from BRICS that it plans to introduce a new gold-backed currency fueled euphoria in the gold market, causing gold prices to surge.
Days after the announcement, gold prices posted a fresh seven-month high of $1,980 per ounce on July 19. Gold prices since then have stabilized at approximately $1,950 per ounce.
This shows that the impact of the announcement of the new gold-backed currency is fading. But investors are still awaiting fresh cues and further details about the specifics of this new gold-backed currency.
It has now been nearly a month since Russia first announced that BRICS countries "are planning to introduce a new trading currency, which will be backed by gold." A more specific framework for what this new gold-backed currency could entail may be announced during the upcoming BRICS summit to be held in Johannesburg, South Africa.
But Leslie Maasdorp, Vice President of the BRICS-founded New Development Bank, noted that potential investors should not expect any BRICS nation to suddenly declare an immediate abandonment of the U.S. dollar.
"It's going to take a very long time for currency movements to take shape so any discussion of alternate currencies is indeed a much more medium- and longer-term aspiration," he said.
Learn more about the downfall of the American dollar at DollarDemise.com.
Watch Kevin DeMeritt's full interview regarding the future of the U.S. dollar.
This video is from the Thrive Time Show channel on Brighteon.com.
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USD dominance will substantially weaken with BRICS launch of a gold-backed cryptocurrency.
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