BRICS Countries Stockpile Gold: A Strategy to Break Free from the US Dollar?

JAKARTA, KOMPAS.com — Countries in the BRICS bloc have become increasingly aggressive in adding to their gold reserves in recent years. This phenomenon not only reflects a surge in demand for the precious metal but also a major strategic shift in global foreign exchange reserve management. This trend is occurring amid rising geopolitical uncertainties, the weakening dominance of the US dollar, and changes in how central banks view safe and neutral reserve assets. The figures have increased significantly compared to around 11.2 per cent in 2019. Russia is the largest holder in the bloc with about 2,336 tonnes, followed by China with around 2,298 tonnes and India with about 880 tonnes. The rise in gold ownership aligns with the global trend. In recent years, central bank gold purchases have consistently been above 1,000 tonnes per year, a sharp increase from the average of 400 to 500 tonnes in the previous decade. Data from the World Gold Council shows that central banks are maintaining the gold buying trend into early 2026. Throughout 2025, central banks added about 328 tonnes of gold net. Meanwhile, entering 2026, purchases continue, albeit at a more moderate pace, with an addition of about 5 tonnes in January. Although it slowed temporarily, the World Gold Council assesses that demand remains on a strong footing. Unresolved geopolitical tensions are likely to keep accumulation ongoing throughout 2026 and beyond. As many as 95 per cent of respondents expect global gold reserves to increase in the next 12 months, while 43 per cent of central banks plan to add to their gold holdings, the highest figure in the survey’s history. One of the main factors behind the surge in gold purchases is the effort to reduce dependence on the US dollar.