Gold Surges 36% in 2024: Could BRICS and Global Shifts Drive Prices Even Higher?

Today's expected range for the Canadian Dollar against the major currencies:

US Dollar        1.3740-1.3930

Euro                 1.4860-1.5070

Sterling            1.7840-1.8080

WTI Oil (opening level) $70.71

Did anyone notice that the price of gold has moved from $2000 to $2730 since the beginning of the year. I calculate that as a gain of greater than 36% so far and I won't be surprised if we get to 40% or $2800 by the end of the year. During the course of this year I have heard that BRICS (Brazil, Russia, India (or is it Indonessia?), China and South Africa) were looking to create their own currency block using Gold as the common standard. There is a lot of speculation about what is driving the gold bus. Wars. Interest rates. Stock markets. Central bankers moving away from currency reserves to actually holding gold as an asset.

Could be everything all at once.

The USD is still the largest- most widely traded currencyin the world. The old statistic is that 89% of world commerce has one side of trade taking place in USD. In order to change that you must have an acceptable alternative currency, that has both trust and adapotion internationally.

Gold could be that tool.

The move in the price of gold during the last year is a good indicator that markets look to the asset as something will give actual support and meaning to those involved in global trade.

I have written in the past about virtual currencies needing 'trust and adoption' to gain traction in the world of payments. In that same essay, I suggested that central bankers were more of a Ponzi scheme than Bitcon. I see Bitcoin with a fixed number (21 million) coins being more stable than currencies. Because the central bankers just print more and more money all the time, it makes sense that currencies will weaken and solid commodities will gain in value.

If gold is the one commodity that the world understands for commerce then the chances of it being the foundation of the BRICS trading platform supports its increasing value and attraction.