Portfolio, Asset Protection

The BRICS De-Dollarization & What It Means for Gold

  • Author Written by The Nestmann Group
  • Reviewed by Brandon Roe
  • Calendar Updated: June 18, 2025
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Contents

The global financial system isn’t collapsing — but it is splintering.

The BRICS nations – Brazil, Russia, India, China, and South Africa – are gradually reducing their reliance on the US dollar. They’re building new payment systems, making strategic gold purchases, and drawing more countries into their sphere. It’s not a revolution. It’s a repositioning.

And gold is central to that repositioning — not as speculation, but as insulation.

We’re covering this because, while BRICS isn’t the primary force behind gold’s recent price surge, it’s one factor among several. And it’s one we monitor and reference often, especially when clients ask us about gold as part of an international Plan B – and how the yellow metal can play a part.

You don’t need to believe BRICS will overturn the global order overnight. That’s not really the point. The real story is broader: global uncertainty, including geopolitical and monetary fragmentation, has pushed gold back into the spotlight as a hedge.

Whether you’re retired, close to it, or just focused on protecting wealth, the role of gold today deserves your attention.

Why BRICS Is Leaning on Gold

Instead of making sudden and immediate changes, BRICS de-dollarization is starting slowly.

Together, BRICS countries now hold about 20% of the world’s official gold reserves. Russia’s central bank leads the pack with around 2,335 metric tons, closely followed by China with 2,279 metric tons. Combined, they account for over 74% of BRICS reserves and roughly 15% of global reserves.

In 2023, BRICS nations were the largest buyers of gold worldwide. China alone added 225 metric tons, marking its biggest single-year purchase in nearly 50 years. India and Russia also made significant acquisitions.

But this strategy goes beyond just stockpiling gold.

The BRICS bloc is:

  • Increasing trade among members using local currencies instead of the US dollar.

  • Proposing “BRICS Pay,” a digital cross-border payment system designed to bypass Western-controlled financial rails.

  • Expanding membership. Egypt, Ethiopia, Iran, and the UAE joined in early 2024. Indonesia came aboard in 2025, bringing total membership to ten.

  • Building their own institutions, like the “New Development Bank” and an emergency reserve fund, as alternatives to dollar-backed global systems.

Why does this matter?

Gold gives BRICS countries a way to reduce their exposure to the US dollar. It’s also being discussed as part of this idea of a future shared currency.

The goal isn’t to dethrone the dollar overnight – it’s to build independence from it. And gold plays a central role in that strategy.

Even with the recent uptick in gold purchases by BRICS, the trend isn’t one-way. Short-term economic and political pressures are forcing some members to shift course.

Russia, for example, saw its commercial banks halve their gold holdings by the end of 2024 — a likely response to sanctions, liquidity needs, and rising rates.

Meanwhile, China paused its gold buying for half of 2024, despite leading global purchases the year before, pointing to concerns about price volatility and market timing.

This underscores the real dynamic: BRICS may be pivoting away from the dollar, but that doesn’t mean they’re moving in lockstep, or in a straight line. Domestic pressures still drive tactical decisions.

What matters for our clients isn’t the month-to-month fluctuation — it’s the long-term trend. And that trend — away from US dollar dominance and toward gold as a geopolitical buffer — remains firmly intact. That’s what we’re watching.

Why Gold Prices Are Still Climbing

As of June 2025, spot gold sits around $3,430 per ounce, up significantly from January.

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So long-term trends notwithstanding, what’s driving this surge now? We see three things:

  • Central bank demand: Central banks worldwide have been increasing their gold reserves for reasons already stated. In 2024, they collectively added over 1,000 metric tons for the third consecutive year, bringing total holdings to approximately 36,000 metric tons. This trend reflects a desire to diversify reserves and reduce reliance on the US dollar.
  • Geopolitical risk: Ongoing conflicts – like those between Ukraine and Russia and, more recently, Israel and Iran – heighten investor demand for safe-haven assets like gold.
  • Economic uncertainty: Concerns over international trade wars and market volatility have led investors to seek stability in gold.

In other words, gold’s doing what gold’s always done to one degree or another for thousands of years – serve as a reliable store of value in chaotic, unstable times.

Read more: 10 Reasons to Invest in Gold

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What This Means for Investors

The key takeaway isn’t to copy BRICS, of course. It’s to learn from the underlying trends.

The Dollar’s Grip Is Loosening

We’re moving away from a world where one currency runs the show. 

The US dollar is still important, but not as dominant as it once was. In the 1990s, it made up over 70% of global currency reserves. By the end of 2024, that number had dropped to around 57.8%. 

This doesn’t mean the dollar is going away soon. The USD took the mantle of the world’s reserve currency from Great Britain after World War II, but the British pound still exists. 

But what it does mean is more ups and downs in currency values, more global tension, and a more complicated financial system.

Gold Still Does Its Job

Even with all the drama, gold has held its ground. In fact, it’s done exactly what it’s supposed to do – protect value when other things get shaky.

Spreading Risk Is the Real Safety Net

The BRICS trend offers good advice on its own: putting all your money in one place – even in the US – is risky.

It’s safer to spread your investments around.

Have some assets that do well when the dollar is strong – and others that do well when it’s not. Some that benefit from growth in the US, and others that benefit from growth overseas.

Gold is still one of the most reliable hedges when global systems come under stress. It’s not the only one, but it’s proven. 

Read more: Currency Diversification Beyond the US Dollar

Smart Gold Strategy: Storage Matters

Buying gold is one thing. Storing it well is another. If you’re serious about protecting value, how and where you hold gold is just as important as owning it.

Home Storage: Simple but Risky

Keeping gold at home feels easy. It’s close, it’s private, and it doesn’t cost anything after you buy the safe.

But it has real downsides: fire, theft, and even seizure during legal or political emergencies. Without a special policy or rider, home insurance often doesn’t fully cover the value either.

A number of clients have minimized some of these threats by purchasing a couple safes – one or two “real” ones hidden away and a few “decoy” ones in more traditional spots, filled mostly with items of nominal value.

If someone tries to rob them, the decoys make the thieves think they’re getting away with something, while the real store of value is safely hidden away.

Bank Safe Deposit Boxes: Limited Access, Limited Use

US banks offer safety deposit boxes, and they’re more secure than the average home safe.

But they come with tradeoffs. In a financial emergency, government freeze, or bank failure, you may not be able to access your box.

Private Offshore Vaults: Strategic Diversification

For clients looking for true jurisdictional diversification, private vault storage outside the US is often the best choice. We’ve long flagged Singapore, New Zealand, and Switzerland as some of the most stable and trusted vault jurisdictions for physical gold holdings.

These private storage services are highly secure, professionally managed, and often available in “allocated” (your gold, in your name) or “segregated” formats (your gold, in your name, in your own box). Some also integrate with offshore legal structures for privacy and asset protection.

Read more: The Best Countries for Offshore Gold Storage

A Word of Caution

Don’t just throw your gold into any vault and call it a day. And it’s rarely a good idea to use a foreign trust or company to hold US-based gold. Planning matters just as much as possession.

Instead, use proper planning. Gold stored offshore should be part of a larger strategy that includes legal structures, tax reporting, and diversified asset classes.

Gold Is a Tool – Not the Whole Toolbox

Gold is only one part of a complete wealth protection strategy. The BRICS situation proves that real protection comes from several strategies.

Gold is not a plan. It’s part of a plan. 

At The Nestmann Group, we’ve worked with clients across the US who understand this deeply. They don’t see gold as a silver bullet — they see it as one layer of strategic protection. 

Here’s how many are building real diversification today:

Real Estate in the Right Places

Buying foreign real estate in stable countries can help protect against inflation and give you global diversification.

Many of our clients have done well in places with strong expat markets, like Portugal, Panama, and Mexico. These spots often have different economic trends than the US, which helps balance your portfolio.

Read more: How Americans Can Buy Foreign Real Estate

Build International Banking Options

Having a bank account outside the US gives you more flexibility. If things change at home – like new financial rules or restrictions – you’ll be glad to have options.

And this isn’t just for the ultra-wealthy. With the right connections and professional planning, international banking presents a viable currency and jurisdictional diversification strategy for Americans.

Pairing Gold Storage with an International Trust or LLC

For higher levels of privacy and legal insulation, storing gold offshore through a trust or an international LLC can make sense.

We usually recommend Cook Islands or Nevis for offshore trusts. These jurisdictions are time-tested and court-proven for asset protection.

A client came to us after another US-based firm told him he needed an offshore trust. The firm was a well-known name in the space – and they were ready to charge a ridiculously high fee to set it up.

But after reviewing his goals and situation, we found he didn’t need a trust at all. The structure didn’t fit.

Offshore planning works best when it’s tailored – and bad advice still gets sold. That’s why we don’t start you with a product recommendation. We start by first understanding your needs.

Exposure to US Equities and Domestic Cash

This preserves liquidity and provides benefits from stable income. Even while protecting assets offshore, for most people, it often makes sense to keep a portion of their wealth inside the US.

A well-balanced mix of domestic stocks and cash ensures you have access to capital when you need it — and gives you an upside if US markets perform well. It’s not about going “all in” overseas. It’s about having tools in place for every scenario.

Common Mistakes Investors Make

1. Betting on Just One Outcome

Some investors pick a side, but this is rarely the smart move long-term. The future isn’t black and white.

2. Ignoring Politics

Many global shifts are driven by politics, not just economics. If you ignore political risks – like new tariffs or sanctions – you could miss major warning signs.

3. Trying to Time the Market

Guessing the exact moment to buy or sell rarely works. It’s better to plan around long-term trends than chase perfect timing.

4. Overlooking Taxes

International investments can trigger tricky tax and reporting rules. Work with professionals who know how to handle cross-border issues. Mistakes here can cost you more than market losses.

5. Having No Backup Plan

Your plan should be flexible. Things change – governments change, rules change. You’ll want options so you can pivot when needed.

Build Protection. Not Hype

Gold is having a moment not because everything is collapsing – but because confidence in the global system is eroding in slow motion. 

Long-term, BRICS nations are responding with gold. As are many central banks. And investors who understand that in uncertain times, static portfolios are a risk. 

If you’re looking for long-term security – not headlines, not hype – feel free to get in touch. We can walk you through your options and help you create a plan that fits your goals. This is your chance to build a plan that works no matter what comes next. 

Because in a world where even gold-hoarding countries are sometimes forced to sell, having multiple layers of protection isn’t just smart. It’s essential.

Sources:

About The Author

Since 1984, we've helped high net worth American investors, entrepreneurs, and families go offshore. Our formula is simple: full-service programs for global investing, tax reduction, and second residency or citizenship -- so you skip the hard parts and keep the benefits. To learn more about how we can help you, please get in touch.

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