BRICS Reorient: How National Reserves Are Displacing American Bonds

BRICS alliance members are demonstrating a strategic shift in managing their financial assets. According to NS3.AI, the leading economies of the union—China, India, and Brazil—are actively reducing their holdings of U.S. government bonds while increasing their gold reserves in national vaults. This reorientation indicates profound changes in the global financial architecture.

Active Disinvestment from Dollar Assets

The reduction in U.S. bond investments reflects growing concerns about the reliability of American debt as a long-term store of value. BRICS countries are expanding their gold reserves not only as a financial instrument but also as a symbol of financial independence. This strategy allows the alliance members to reduce vulnerability to dollar fluctuations and potential sanctions that could affect their currency reserves.

Geopolitics and Economic Security

This shift is driven by escalating international tensions and fears of the potential politicization of the U.S. dollar as a tool of pressure. BRICS perceives the move to gold-based reserves as an investment in long-term economic sovereignty. Unlike treasury bonds, gold cannot be frozen and is not subject to political decisions by a single country, making it more attractive for diversifying national reserves.

Forecast: When Gold Will Surpass Bonds

According to NS3.AI’s analytical forecasts, if current trends continue, by the end of 2027 or early 2028, the total value of BRICS’ gold assets could exceed their combined investments in U.S. bonds. This turning point will symbolize a fundamental restructuring of the global reserve system and accelerate the process of de-dollarization, which is already transforming international financial relations.