Australia Must Boost Gold Reserves Amid BRICS Gold Rush

It's no secret that BRICS countries are buying gold at unprecedented rates, which is the main reason gold is appreciating in value so quickly. Speculation suggests BRICS is planning a gold-backed exchange currency to facilitate further movement away from the US dollar as the default currency for settling international trade.

I have asked the Reserve Bank about this on several occasions, highlighting Australia's puny gold reserves as compared to Russia (a similarly sized economy) and China. Once again, the answer I received indicates the Reserve Bank has its head in the sand on this issue.

Our economy is so closely tied to the United States that a new exchange currency will "free up" a huge amount of US dollars, which will have significant consequences not just for the USA but for major trading partners such as Australia.

Australia must respond to the threat of a new exchange currency by expanding our gold holdings as a hedge against an upheaval in the currency market. One Nation will expand our gold reserves and reduce our exposure to the US dollar—both currency and treasuries.

Transcript: https://senroberts.com/gold-reserves