Gold is the Future of BRICS' New Currency! Here's why?

Hello everyone and welcome to Geopolitical Trends. I'm your host, Dr. David Oualaalou. So good to be with you as always. Following the conclusion of the BRICS Ministerial Summit in Cape Town, South Africa, where senior officials from more than a dozen countries, including Saudi Arabia and Iran, were in talks of forging closer links with the BRICS bloc. The latter is positioning itself as a counterweight to the West, both economically and financially, as many are fed up with the US weaponizing the dollar. In this regard, China has made clear its discontent with the role of the US dollar in the international economic system and its intention to internationalize the renminbi as an alternative international currency. A popular narrative tells us that as China is now the world's second-largest economy, the largest trading nation, and the largest trade partner to 120 countries, it is inevitable that the renminbi will play a larger role in the international economy. A side effect of the move to a more renminbi-centric international economy will be the loss of the US economic power. If the US continues to weaponize its dollar hegemony, this is only bound to accelerate the decline of the dollar. The US will be best served by refraining from using economic statecraft to pressure countries to adhere to its wishes and follow its policies. China has already developed the financial plumbing, if I may use the term, required to facilitate the internalization of the renminbi. The country—China, that is—has developed an alternative cross-border payments system, known as CIPS, to rival Fedwire and the Clearing House Interbank Payment System. China's Apple Pay and Tencent Pay have also now been widely adopted abroad. With the ratcheting up of the Western sanctions against Russia, many countries in the Southern Hemisphere have expressed a desire to reduce their dollar dependency. Not least among these has been the disclosure that Saudi Arabia, Brazil, Iran, and Iraq, among others, will use the renminbi for bilateral trade with China. BRICS nations are advancing at a fast pace to eliminate the US dollar-dominated financial system. The first step is to bypass the US dollar, and the second step is to create a new currency to settle international trades. While the first step is already in practice, the second step could be put in place after the BRICS summit in August this year in South Africa. The next question we need to ask is whether gold will back this new currency. As 24 nations align against US dollar as BRICS looks to launch new global currency. BRICS is reportedly on the cusp of a massive expansion. Where does gold fit into this equation, you may ask? According to the Russian state-owned news agency Sputnik, BRICS is in the early stages of developing a new global currency that would circumvent the US dollar. Russian State Duma Deputy Chairman Alexander Barbakov says the new form of fiat will likely be backed by other assets including precious metals like gold. Additional details are likely to emerge by the summer with the next BRICS summit set for South Africa in late August this year. Interestingly, China is leading the pack by accumulating massive amounts of gold in both the first quarter and second quarter of this year. China has a total of about 2,000 76 tons of gold accumulated in this year so far, after an increase of 120 tons through March. In April, the reserves grew by another 8.09 tons, making the BRICS bloc the top buyer of gold. Apart from China, the other BRICS nations—Brazil, Russia, India, and South Africa— are also extending gold purchases through their respective central banks. Reports suggest that the soon-to-be-released BRICS currency could be backed by gold, and therefore the bloc of nations is splurging on the metal. The BRICS bloc needs gold to back its upcoming currency and end reliance on the US dollar. The CEO of the US Global Investors, Frank Holmes, said that the pattern of BRICS nations buying gold is worrisome. Now I want to tell you about today's sponsor, which is tied directly to the demand for gold and silver, among others. The sponsor is GoldMining Inc. Their stock ticker on the New York Stock Exchange is GLDG, as you see on your screen. This gold producing stock is trading at just 97 cents a share at the time of this recording, and we have a new analyst price target that just came out suggesting this stock will hit $5.25 a share. Here is what you need to know about this company. GoldMining Inc. is such a remarkable company with a market cap of $170 million as of late. Remember, few weeks ago I mentioned in one of my videos how many central banks around the world are buying more gold. What's interesting is that GoldMining Inc. has 81% ownership of another gold producer company called USGO, which is worth about $140 million. What is fascinating is that a few weeks ago, USGO has gone up 50%. Yeah, you heard me correct. Yes, that stock went up 50%. What's even more fascinating is that Gold Mining Inc. owns 81% of that company, USGO. On top of that, they own 15% of another company called G Roy, which is the fastest growing royalty gold company in the gold sector. And G Roy is worth about $40 million. So you do the math. $140 plus $40, that total $180 million. And remember what I said earlier, the market cap for the company is only $170 million. $1.5 million. Now you are starting to see why it's very important to invest in Gold Mining Inc. It gets even better. Actually, not only did Gold Mining Inc. own a huge chunk of those companies that I just told you about, but it also owns various gold deposits from North America to South America and anything in between. The estimate is about 24 million ounces of gold equivalent resource. That they are sitting on in the highest graded category of gold. Putting my analyst hat on, what it all means is that if it's valued properly, this 24 million ounces of gold resource could be worth as much as $960 million, which is basically 6 times from today's market cap. If you are doing the math. Now you see why GoldMining Inc. just got a share price target of $5.25 a share. As a reminder, it's trading right now at $0.97 a share as at the time of this recording. Now you see why many countries are moving away from the US dollar as central banks want to diversify and stay away from the US dollar. The one asset they are choosing is gold. They are stockpiling gold like there is no tomorrow. What this proves is that as BRICS and many other countries want to de-dollarize, it's clearing the bottom for commodities like gold and others, which are about to surge vertically. It goes without saying Do your research and due diligence on this company, GoldMining Inc. The stock ticker is GLDG, and remember, it's trading today at $0.97 a share, and there is an analyst price target of $5.25 a share. So what are you waiting for? You can either invest in GoldMining Inc. stock ticker is GLDG today or let this opportunity slip away as demand for gold is only going to increase moving forward. Once again, it's Gold Mining Inc. Stock ticker is GLDG. Check it out. And remember, there is always risk in investments and there are no guarantees. Thank you.