Why Are BRICS Countries Buying So Much Gold?

BRICS nations are buying gold for three reasons: to escape the dollar, protect reserves from sanctions, and hedge against a debt spiral they didn’t create. The 2022 freezing of Russia’s $300 billion in Western-held reserves made the case better than any policy paper could.  

Dollar-denominated reserves can vanish overnight. Gold cannot. 

Gold is trading near $4,850 per ounce as of April 2026 — up over 40% in twelve months — and BRICS nations are still buying faster than ever. Most investors assume the story here is price. It isn’t. It’s what the buying itself reveals about how the world’s largest emerging economies now think about money, risk, and the dollar. 

What Is BRICS — and Why Does Its Gold Strategy Matter? 

BRICS is a bloc of major emerging economies that has made building sovereign gold reserves a deliberate policy priority. The original five — Brazil, Russia, India, China, and South Africa — were joined in January 2024 by Egypt, Ethiopia, Iran, and the UAE, and in January 2025 by Indonesia. That brings confirmed full membership to ten countries. Saudi Arabia was invited but its formal accession remains unconfirmed. Argentina declined in late 2023. 

The bloc now represents approximately 40% of global GDP (purchasing power parity) and roughly half of the world’s population [IMF / BRICS Brazil Presidency]. When nations of this economic weight make coordinated reserve decisions, they move markets structurally — not temporarily. 

How Much Gold Are BRICS Nations Actually Buying? 

Combined BRICS+ gold reserves now exceed 6,000 tonnes. Russia leads with 2,336 tonnes, China holds 2,298 tonnes, and India holds 880 tonnes. Even Brazil returned to the market in September 2025 — its first purchase since 2021 — adding 16 tonnes to bring its total to 145.1 tonnes. 

Between 2020 and 2024, BRICS+ central banks accounted for more than 50% of all gold purchased by central banks globally. Their share of world gold reserves has climbed from 11.2% in 2019 to 17.4% today [World Gold Council]. Global central banks collectively exceeded 1,000 tonnes of annual purchases in 2022, 2023, and 2024 — the longest sustained buying streak in modern history. In 2025, purchases reached 863 tonnes. BRICS nations drove that trend.

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Why Are BRICS Nations Buying Gold? The Four Drivers 

1. De-dollarization: The U.S. dollar’s share of global reserves has dropped from 71% in 1999 to roughly 57% today — its lowest level since 1994 [IMF COFER]. BRICS nations aren’t rotating into euros or yuan. They’re rotating into gold: the only reserve asset with no issuer, no counterparty, and no political jurisdiction. For a full breakdown of this trend, see What Is De-Dollarization? 

2. Sanctions-proofing: Dollar assets held abroad can be frozen. Domestic gold cannot. After 2022, that distinction became the most important concept in reserve management. 

3. Hedging against dollar debasement: U.S. federal debt crossed $39 trillion in March 2026. Annual deficit spending is projected at approximately $1.9 trillion for fiscal year 2026 [Congressional Budget Office]. Emerging-market reserve managers are responding to that arithmetic. Gold is one of the few assets governments cannot print. 

4. Building a post-dollar architecture. On October 31, 2025, researchers at the International Research Institute for Advanced Systems (IRIAS) launched a pilot for a gold-anchored settlement “Unit” — a digital trade instrument backed 40% by gold and 60% by BRICS currencies. It remains a researcher-led initiative, not official BRICS policy. But it signals the direction: gold as the foundation of a parallel financial system. 

What Did the 2022 Russia Sanctions Change? 

When the U.S. and its allies sanctioned Russia following the invasion of Ukraine, approximately $300 billion of Russia’s $643 billion in foreign reserves became inaccessible almost overnight — confirmed by Finance Minister Anton Siluanov. The funds were held at foreign institutions. The gold Russia kept at home could not be touched. 

Every finance minister watching drew the same conclusion: reserves you cannot access are not really reserves. Global central bank gold purchases nearly doubled — from roughly 500 tonnes a year before 2022 to over 1,000 tonnes after. The Bank of Russia’s gold position grew by over $216 billion between February 2022 and end-2025, partially offsetting the frozen assets [Bloomberg]. The sanctions meant to isolate Russia ended up accelerating the very diversification they were designed to deter. 

Is BRICS Gold Buying a Threat to the Dollar? 

The dollar hasn’t collapsed. It remains the world’s dominant reserve currency. But dominance and direction are different things. 

The dollar’s reserve share has fallen from 71% in 1999 to approximately 57% today. Gold’s share of official global reserve assets has more than doubled over the same period — from below 10% in 2015 to approximately 19% — driven partly by price appreciation, but also by deliberate policy shifts [European Central Bank]. In the World Gold Council’s 2025 Central Bank Gold Reserves Survey, 73% of central bankers said they expect the dollar’s reserve share to fall further over the next five years. These aren’t traders making a call. These are reserve managers at the world’s central banks, and they’re hedging. 

What Does BRICS Gold Buying Mean for Individual Investors? 

The forces driving BRICS gold buying are the same ones eroding individual purchasing power: deficit spending, currency debasement, geopolitical instability. Physical gold is the individual version of what Russia learned in 2022 — an asset no foreign authority can reach. 

A record 43% of central banks plan to increase gold holdings over the next twelve months. None plan to reduce them [World Gold Council, 2025 Central Bank Gold Reserves Survey]. When the most well-resourced financial institutions in the world are aligned on an asset, that’s worth understanding — regardless of whether you’re managing a sovereign balance sheet or a personal one. 

See The Quiet Revolution in Central Bank Gold Buying for more on how to position.

What the Data Is Really Telling Us

BRICS nations are buying gold because the dollar system — reliable for 80 years — proved it could be weaponized. Once that happened, every central bank outside the Western alliance had to ask the same question: what do we actually own if it can be frozen?

The numbers behind the shift

The answer, increasingly, is gold. BRICS+ nations have moved from 11.2% of global gold reserves in 2019 to 17.4% today. Central bank purchases averaged more than 1,000 tonnes a year from 2022 through 2024. Seventy-three percent of the world’s central bankers expect the dollar’s reserve share to keep falling. None of this is speculative — it’s already in motion.

What it means for individual savers

The same reasoning that drives sovereign reserve managers toward gold applies to individual savers. Debt that can’t be repaid gets inflated away. Currencies backed by deficit spending lose purchasing power over time. Gold has no issuer, no counterparty, and no government that can dilute it. That’s why central banks hold it, and it’s why individuals have held it for centuries.

If you’re thinking about what that means for your own financial resilience, GoldSilver.com is a good place to start — with research, education, and the ability to own physical gold and silver directly.

People Also Ask 

What are BRICS nations?  

BRICS is a bloc of major emerging economies originally comprising Brazil, Russia, India, China, and South Africa. In January 2024, the group expanded to include Egypt, Ethiopia, Iran, and the United Arab Emirates, and in January 2025 Indonesia joined as a full member, bringing confirmed membership to ten countries. Saudi Arabia was invited to join but its formal accession remains unconfirmed; Argentina declined its invitation in late 2023. The expanded BRICS+ bloc represents approximately 40% of global GDP (measured by purchasing power parity) and roughly half of the world’s population, making it one of the most consequential economic alliances outside the Western-led financial system. 

How much gold do BRICS countries hold?  

Combined gold reserves of BRICS+ member states now exceed 6,000 tonnes. Russia leads with 2,336 tonnes, China holds 2,298 tonnes, and India holds 880 tonnes, according to IMF and World Gold Council data as of late 2025. Between 2020 and 2024, BRICS+ central banks accounted for more than 50% of all gold purchased by central banks globally. 

Why are BRICS nations buying gold instead of other assets?  

Gold is the only major reserve asset with no issuer and no counterparty risk. Unlike U.S. Treasuries or euro-denominated bonds, physical gold held domestically cannot be frozen by foreign authorities, cannot be defaulted on, and is not subject to the monetary policy decisions of any single government. For BRICS nations seeking independence from the dollar system, those properties are decisive. 

Did the Russia sanctions cause BRICS nations to buy more gold?  

Yes — it was a direct catalyst. When the U.S. and its allies froze approximately $300 billion of Russia’s $643 billion in foreign exchange reserves in 2022, every emerging-market government watching drew the same conclusion: reserves held in foreign institutions are not truly yours. Central bank gold purchases nearly doubled in the immediate aftermath, from roughly 500 tonnes annually before 2022 to over 1,000 tonnes afterward. 

Are BRICS countries trying to replace the dollar with gold?  

Not overnight — but they are building the architecture for a less dollar-dependent system. Researchers at IRIAS launched a pilot gold-anchored digital settlement unit in late 2025, though this remains a research initiative rather than official BRICS policy. Additionally, Russia and China have been settling bilateral trade in yuan and rubles. The goal appears to be reducing dollar dependency in trade and reserves, rather than an immediate replacement of the dollar as the global reserve currency. 

SOURCES
1. World Gold Council — Gold Demand Trends: Full Year 2025
2. World Gold Council — Central Bank Gold Reserves Survey 2025
3. IMF — Currency Composition of Official Foreign Exchange Reserves (COFER)
4. IMF — World Economic Outlook
5. BRICS Brazil Presidency — BRICS Data
6. Congressional Budget Office — The Budget and Economic Outlook: 2026 to 2036
7. European Central Bank — The International Role of the Euro, June 2025
8. Bloomberg — Russia Gains $216 Billion in Gold Rally, Replacing Lost Assets

Disclaimer: This article is for informational and educational purposes only. It does not constitute investment advice. Past performance is not a guarantee of future results. Consult a qualified financial advisor before making any investment decision. 

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