We are only a few days away from BRICS deciding to establish a precious metals exchange during the 2025 summit. Reports are doing the rounds that the alliance intends to launch its own index that tracks precious metals exchange. The move is intended to move away from the Western-backed indexes and trade in the new indices formed by the bloc.
BRICS member Russia was the first to float the idea of establishing a new precious metal exchange in October. Russian Finance Minister, Anton Siluanov was in talks with other members about the idea to ensure fair pricing and trade growth.
If approved, the precious metals exchange would be an alternative index not backed by the West but solely operated by BRICS. The development would significantly impact gold and silver prices and put a wedge in the broader commodity markets.
A newly-launched BRICS precious metals exchange, if approved, might reshape price discovery in gold, silver, and other commodities. Chart patterns and trading strategies could experience a spurious update making the market dynamics look different in the financial sector.
Also Read: India Explains the Main Agenda For BRICS 2025 Summit
Launching a New Precious Metals Exchange on the Cards For BRICS
While the mechanism for BRICS to launch their own metals exchange is tedious, it’s not completely impossible. The mechanism will include a paradigm shift in the market’s purview setting a new standard of benchmark for price measurements. It would require an accreditation of market participants and a stringent audit and clearing for price and value tracking.
Also Read: De-Dollarization No Match for US Dollar Supremacy, Say Central Bankers
Gold, silver, and nickel could come under the BRICS metals exchange if the approval goes through. The alliance has an abundance of these metals and can give it a head start in establishing the new index. The 17th summit will take place in Brazil’s Rio de Janeiro on July 6 and 7. Russia’s Vladimir Putin and China’s Xi Jinping will not attend the summit due to various reasons.
