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Introduces the unusual oil transaction settled with a gold-backed token instead of the dollar. The speaker argues the deal may be part of a larger BRICS effort to challenge the existing monetary order.
Just a couple of months ago, an oil transaction happened in a way that had never been done before.India, the third largest oil importer in the world, bought oil from the United Arab Emirates, the eighth largest oil producer, and the entire transaction was settled without using the US dollar, the Chinese yuan, or even Bitcoin.That's two of the biggest names in the global oil market, and none of the currencies the world would normally expect to see showed up.Instead, this payment was made using a new digital token that is backed by gold.Now, the official story is that this was just a small central bank task, one that is being described as simply experimental.And indeed, central banks around the world are testing new digital payment systems right now with over 40 different projects currently running.In fact, the central banks of India and the UAE themselves signed an agreement back in 2023 to test digital payments between their countries.
So, on the surface, the official explanation makes perfect sense.The India-UAE oil trade looks like just another experiment.But if we dig a little bit deeper, there are a lot of things about this particular transaction that simply don't add up.The UAE, the country that India bought this oil from, had only just left the Organization of the Petroleum Exporting Countries, also called OPEC, after being a member for nearly 60 years.The reason that they gave for leaving OPEC was a strategic economic move.And within months of this happening, the UAE is already taking part in an oil trade settled outside of the US dollar-based system.The other strange thing about this transaction was that it was not just India and the UAE that were part of it.This also happens to indirectly involve two other countries, Russia and China.And the gold-backed token that was used to settle this transaction was created by an alliance called the BRICS, a group of 11 members that includes India, UAE, Russia, and China, which means that every country directly or indirectly involved
in this so-called experiment is actually a member of the very same group that is designing a new currency.And finally, there is the choice of what they decided to trade in the first place.Out of everything that this currency system could have been tested on, they chose oil, the one commodity that is supposed to keep the whole world buying US dollars.Now, all of these different pieces of this story open up a very different possibility from the official experiment story, something that we could call the unofficial story.And that is that the members of BRICS may have just made their first big move in a battle for who controls the world's money.Because what looks like just an experiment of a new payment method might actually be the first real-world task of a new kind of money, one that is backed by gold and built outside of the US dollar system.
And if it works, it could completely reshape the global monetary system and lay the very foundation for what is being called a multipolar monetary system.A shift like this would trigger a generational transfer of wealth in markets, and it would fundamentally change how the world prices gold.This is something that the head of the United Nations, António Guterres, has himself acknowledged.
We are increasingly moving towards a multipolar world, and multipolarity helps bring balance and equity to global systems and institutions.
Just the possibility of such a multipolar system is already becoming a threat to America.President Trump has publicly threatened the BRICS alliance, saying that if they create a new currency or back any currency to replace the US dollar, they would face 100% tariffs and potentially even have their entire access cut out fromthe US economy.Nobody threatens so aggressively if they truly believe that it was just a harmless experiment.
Explains how past breakdowns in dollar confidence led to major gold repricings in the 1930s and 1970s. It then connects today’s low gold backing, sanctions, and central bank gold buying to renewed pressure on the dollar system.
For context, all of this is happening at the exact moment when the amount of gold backing America's monetary base, which is the total amount of dollars in circulation, sits at only 20%.That is just half of its 100-year average of 40%.Before the 1970s when the dollar was still tied to gold, this line fell below that average only twice.And both times it coincided with what looked like a complete breakdown in trust in the global monetary system.Back in the 1920s, the US operated with the promise that anyone holding dollars could swap them for gold at a fixed price of $20.67 per ounce.But in the 1930s, the Great Depression happened and people started to doubt that America could keep this promise.And so they rushed to cash in their dollars in exchange for gold.This made a record amount of gold flow out of America's vaults, but the amount of dollars in circulation did not shrink with it.
And so this line fell to 39%.Now, to prevent a further spiral, President Roosevelt stepped in in 1934 and repriced gold overnight from $20.67 an ounce to $35 an ounce.The amount of gold in America's vaults had not changed, but its price had.With a repriced gold, the same amount of gold now covered 90% of America's monetary base.So those who had been rushing to cash in their dollars no longer had a reason to because the promise became believable again.Unfortunately, by 1971, this line had once again fallen below 40%.Only this time it reached as low as 20%.This was a result of Washington paying for expanding social programs and a growing military presence around the world, which created new US dollars faster than it was adding gold to its vault.And just like the 1930s, foreign governments lost faith that America could honor its promise.
And so they rushed into swap their dollars for gold once again.President Nixon was forced to take the dollar off the gold standard completely, meaning that the dollar was no longer backed by anything physical.
have directed Secretary Connally to suspend temporarily the convertibility of the dollar into gold or other reserve assets.
This became known as the Nixon shock, and just like in the 1930s, gold saw a significant repricing.Only this time it was the market that did it naturally.Gold prices surged by 2,000% within a decade, which made it back around 120% of America's monetary base by the early 1980s.So both times a loss of faith in the dollar system ended in the same way with a significant repricing of gold.Now you can see since the 1980s, this line has consistently remained below the average of 40% as the amount of dollars in circulation has exploded.Today in 2026, gold backs only 20% of America's money.This was right where it was in 1971 right before its historic repricing.Now there is a reason for why this line was able to stay low for such an extended period of time.Over the course of these decades, global trade and oil in particular kept running through the US dollar.
So say a country wants to buy oil, even if it's not buying that oil from America, that oil is still going to be priced in US dollars through what's called the petrodollar system, meaning that every oil buyer inthe world had to buy dollars first.This constant demand absorbed all the new dollars that America printed even with almost no gold backing them.But like any system, it has its weaknesses because when the entire world's monetary and financial system depends on one country's money, that same country holds the power to decide who gets to use the system.And that is a power that is very tempting to use.A lot of countries have now begun to find this out the hard way.This chart shows us the number of sanctions America puts on different countries every year.In simple terms, a sanction shuts a country out of the US dollar based system.
Whatever the country holds there gets frozen and America's citizens and businesses and often America's allies too can no longer do business with that country.Since the 1990s, the number of sanctions has kept climbing and today it sits at a record high.Essentially, America has been weaponizing its dominance as the country with the world's reserve currency.We really started to see this with Russia after it invaded Ukraine.This big spike that you see here in 2022 was when Russia was initially cut out of the US dollar system and its assets were frozen by America and its allies.And this chart doesn't even take into account the sanctions that are now being placed on Iran.Operation Economic Outcast that was announced a couple of months ago takes this to a whole new level.And of course, this made foreign governments around the world realize that being part of the US dollar system was a vulnerability.
This is why central banks around the world started to buy gold, an asset that cannot be printed and cannot be frozen by anyone else when it is held at home.Since 2022, global central banks have bought an average of 1,000 tons of gold per year.That is double the 500 tons average seen between 2010 and 2021.And as we're going to see in a minute, we actually think this buying could ramp up much more from here.You see over 50% of all this central bank buying is actually coming directly from just one source, the members of BRICS, the very same group of nation states that is behind the new gold-backed token.In fact, the official numbers that these nations have been reporting may actually be significantly understated.According to a recent report by the World Gold Council, the gold industry's own research group, unreported buying remained a significant feature of the market in 2025.
They estimate that 57% of all central bank gold purchases went completely unreported.A simple way to see this is through this chart which shows us the gold purchases officially reported by China, a BRICS member.In May of 2026, for example, China declared purchasing just 10 tons of gold, but based on Goldman Sachs estimates, they actually bought 48 tons of gold through the London OTC market.That is 4.8 times more than the officially reported number.And this is not just a one-off.Underreporting has been a consistent pattern as we can see here.What this is telling us is that the BRICS countries do not want the world to know how much gold they are really accumulating.And as we'll see in just a minute, that is because gold plays a foundational role in the multipolar monetary system that they are creating.
Shows how BRICS countries have been rotating out of Treasuries and into gold while underreporting purchases. The section ends with leaders openly discussing the need for a new reserve currency after Russia was cut off from the dollar system.
Now, what's very important to understand here is that in order to buy all of this gold, these countries actually need to sell something in exchange.And you may have guessed it, they are selling US government bonds.Take Russia, for example.Their dollar-based Treasury holdings have pretty much fallen to zero.If we add India and the UAE, we can see that they have also been selling their Treasuries.And China has, of course, been doing the exact same thing.So the four BRICS members that were directly or indirectly involved in September's oil transaction have all been selling their dollar-denominated Treasuries, the very asset that sits right at the center of the dollar-based monetary system.We already know that all of this capital rotation from Treasuries into gold has helped fuel gold's 250% rally between 22 and 2025.Something, by the way, that we capitalized on by going leveraged long on gold with our members on the website.
But with gold prices now down 30% this year, many investors believe that gold's bull market has now come to an end.And their case comes down to the Federal Reserve, the central bank of America's dollar-based system, who has just started to raise interest rates.After all, gold does not pay any interest.So when the Fed raises rates, Treasuries offer a higher return, making gold look less attractive.We saw this in 2017 and in early 2022 when the Federal Reserve's rate hikes also led to downside on gold.Today, once again, the Fed is raising interest rates and putting some downwards pressure on gold in the short term.But only paying attention to this is like looking at a mountain through a microscope.This completely misses the bigger picture that is taking place, one that is going to fundamentally change not just the price of gold, but how the world's money works.
Now, we're going to go through that in the rest of this video, but we think this pullback is where investors need to be the most informed about what is happening to gold's price because massive opportunities are going tocome from all of this.That's why we've just made our most recent gold strategy report completely free and accessible to everybody watching this video.It covers the key macro forces that are impacting gold right now and exactly how we believe investors should be taking advantage of this with specific entry points and price targets along with the top gold mining companies to ownright now.I think gold is probably the asset that will make us the most amount of money in the coming months, and it's now or never to position properly.Now, normally these reports cost $200, but just for the next three days you can access it completely for free using the link down below.
There's also a special gift that you'll find within the report.Now, this report will already tell you exactly how to take advantage of gold in the near term, but to really see the bigger picture here, it's so important to understand why the central bank buying of gold from BRICSnations is going to happen regardless of what the Federal Reserve does with their interest rate.In fact, this is even something that the Federal Reserve seems to be getting concerned about.For context, you might have already seen this chart showing that foreign central bank gold holdings have crossed above treasury holdings as a percentage of foreign reserves.This is a crossover that happened last year, but in September of 2026, which happens to be the very month that the India-UAE experiment took place, the Federal Reserve came out with a report that was titled Why Gold Didn't
Actually Overtake Treasury Securities as the world's favorite asset.Essentially, this was the Fed trying to convince everyone that gold did not actually overtake treasuries as a preferred asset.They argued that it was just a result of a large valuation changes, and they do have a fair point because gold has gone up by 150% since 2022, while treasury bonds have lost 50% of their value of thatsame period of time.But if we completely strip out the valuation changes that the Federal Reserve is referring to, this is what the chart looks like.And here we can see that gold just overtook treasuries a few weeks ago, even after accounting for the price changes of these two assets.And what makes the Federal Reserve's argument even harder to defend is that America's own allies have been asking for their gold back.France, the world's fourth largest gold holder, recently sold every gram of its physical gold held in the US only to rebuy all of it at home.
The Dutch moved 86 tons of their gold out of the US, and Germany, the second largest gold holder in the world, is also debating doing the same thing with a third of its holdings that are still sitting atthe Federal Reserve.Now, officially, there is nothing to see here.France calls it part of standardizing its reserves, while the Dutch says it wants easier access to its gold.But in reality, we know that they're doing the exact same thing that countries did leading up to the 1934 and 1971 gold repricings.It almost seems as though they are all once again preparing for some kind of a gold reset.Otherwise, we would not have the Fed trying so hard to convince everyone to favor dollar-based treasuries right at the moment when global central banks and America's closest allies are all racing for gold at the same time since exactly
the same year, 2022.So, what exactly happened that year?Yes, that was the year the world saw America cut Russia out of the dollar-based system in February of 2022.But what happened exactly four months later probably matters a lot more.In June of 2022 at the 14th annual BRICS summit in Beijing, Russia's president, Vladimir Putin, said this on national television.We are exploring the possibility of creating an international reserve currency.
Describes BRICS’ proposed settlement token, the unit, and how it is designed to support trade outside the dollar system. It also explains the broader financial infrastructure BRICS is building and why gold could become the anchor of that system.
In other words, just four months after being cut off from the dollar system, Russia was already talking about replacing it.And it wasn't just Russia.Just 10 months later in April of 2023, Brazil's president, Lula da Silva, whose country is also a BRICS member, said the following.Why can't institutions like the BRICS bank have a currency to finance trade relationships between Brazil and China, between Brazil and all the other BRICS countries?Who decided that the dollar was the trade currency?The problem is creating a common currency between 11 countries making up BRICS is a far bigger challenge than simply agreeing on a new unit of account.The euro, for example, works across 21 countries because all of its members share a monetary framework, institutions, and rules.The BRICS nations do not.Its members have had a very different inflation rates, different interest rates, different exchange rates, and different economic structures.
So the bigger opportunity for BRICS was not to build a currency from scratch, but to make use of the resources that these countries already had.After all, BRICS members account for 50% of the world's population, 30% of global GDP, and roughly a third of the planet's natural resources.And that includes the one source that matters the most for the story, gold.Half of the world's gold is mined inside BRICS countries.And as we saw earlier, more than 50% of all central bank gold buying since 2022 was also done by BRICS members, which makes this one of the very few groups in the world that could actually build a monetarysystem designed around gold.And so they did.The answer that BRICS Nations came up with was a blockchain based digital settlement token called the unit.And this is exactly what they tested for the very first time in the India UAE oil transaction.
40% of the unit consists of gold, which is double the 20% that backs America's dollars today and is in line with the 100 year historical average that we saw earlier.The other 60% comes from the currencies of the five founding BRICS members split equally at 12% each.This includes Brazil's currency, the Chinese Yuan, the Indian Rupee, the Russian Ruble, and South Africa's Rand.Now this is not a complete gold standard like the one America had before the 1971 Nixon shock, but as we'll see in just a minute, there seems to be a strategic reason for why the BRICS chose to startwith a 60% fiat currency in the first place.What this unit tells us is that all of the gold that BRICS Nations have been buying over the last few years was never only about moving away from the dollar.It was also about securing the metal that would let them dictate the terms of the new monetary system that they are building.
A logic that Trump himself has put in plain words.He who has the gold makes the rules.And it's no wonder that headlines are already calling this unit a plausible alternative or even a rival to the US dollar.Under this new system, any country will eventually be able to mint this unit on the blockchain as long as its gold is held at home and can be verified through blockchain technology.In other words, a country can only take part in this system if its gold is sitting in its own vaults, not in New York or in London.And this could explain why so many countries have been bringing their gold back home.The more countries that join this system, the more gold will be needed to sustain it.And this kind of massive demand shock has the potential to trigger a significant repricing on gold as we'll see in just a minute.
Now of course every country will join this system, but a nation having its gold at home keeps its options open if it ever falls on the wrong side of the US's agenda and gets sanctioned or if it simplywants to hedge its local currency with a gold-anchored one.Now, to be clear, BRICS has said that this unit is not meant to be an everyday currency.It is primarily built for cross-border trade where the underlying blockchain tracks the gold and settles payments in real time without conventional banks in the middle.But if we look underneath the surface, a complete financial system is already starting to take shape around it, and each piece of it could potentially replace a part of the dollar-based system.Take payments between countries.Today, they run through Swift, the messaging system behind dollar payments, but the BRICS bridge is designed to compete with it.
Take lending.The dollar system has the World Bank, BRICS has the New Development Bank, and take commodities, which are typically priced in dollars.BRICS has just recently agreed to set up a grain exchange that could exceed $1 trillion in trading value.And Russia has also proposed a precious metals exchange so that commodities could be priced without the dollar.Each of these removes another reason to need dollars.So for every part of the dollar system, a counterpart is being assembled with the unit being at the center.And believe it or not, over 40 countries are already positioned to accept it.BRICS believes that all of these pieces should come together by 2030.And if they do, this unit could eventually turn into a fully gold-backed currency.And again, that would have massive repercussions for the price of gold itself.And this plays directly into why we think BRICS chose to start with a 60% fiat currency in the first place because that part was likely never meant to last.
You see, the 60% here comes from five currencies whose governments deal with their economic problems the way most governments do by printing a lot of money.But every time they do that, each unit of those currencies buys a little less.But the unit has one part that cannot be printed, it's gold.So over time, the paper part keeps losing its value while the gold part holds its purchasing power and gets repriced higher, which means that gold will become a bigger and bigger share of what the unit is worth untileventually it's all that will be left.In other words, the unit turns into a fully gold-backed currency by the default mechanism of currency debasement.This is a similar pattern to what we saw in 1934 and in 1971 when trust in paper money broke and the price of gold was reset higher.Only this time, the repricing is built into the very design of the currency.
The more the paper part of the unit loses, the more its real value will come from gold.And all of this ultimately means that gold would need to be repriced much, much higher than the $4,000 that it's currently trading at.The countries that join this system early will benefit the most because they get to take advantage of the fiat release valve while their trade settles in something anchored to gold.But the ones who pay the price are the average citizens with no access to the unit during that time.They are stuck holding currencies that keep on losing value.And if the unit ever becomes an everyday currency, then by the time a citizen's fiat is converted into the gold-backed unit, it will be worth far less than before.In fact, there is already a hint of this potential plan.Just this year, BRICS rolled out 10,000 sample notes of what they are calling the R5 note, acknowledging the five currencies that are backing it.
Now this was only a symbolic gesture for now, but it gives us a first look at what the paper side of the unit could eventually look like in people's hands.
Assesses the risks and uncertainties around the BRICS plan while arguing that dollar weaponization makes the shift more likely. The speaker closes by estimating a much higher long-term gold price and promoting their gold strategy offer.
Now of course, none of this is guaranteed.These countries have different economies and no shared policy frameworks yet, so they would have to stay committed to this plan for years.But what is certain is that the more America uses its dollar-based monetary system as a weapon, the more reasons these countries have to shift to this kind of multipolar monetary system.Back in the 1960s, Henry Fowler, the US Treasury Secretary at the time, warned that providing reserves and trade to the whole world is too much for one country and one currency to bear.And today we may be seeing that warning unfold in real time.And all of this takes us to what this means for the price of gold.Right now, the BRICS nations handle roughly $9.6 trillion in total annual trade.The blueprint for their new currency, the unit, mandates that it must be 40% backed by physical gold.
So if all of that trade were settled in the unit, 40% of $9.6 trillion means that they would need $3.8 trillion worth of gold value sitting in their vaults.Currently, the BRICS nations hold about 193 million ounces of physical gold reserves.If we divide $3.8 trillion by those 193 million ounces of gold, then each ounce would need to be worth roughly $20,000 for their gold to back it all.That is five times higher than where gold trades today.Of course, this wouldn't happen in a straight line because gold's short-term moves are still influenced by a lot of other factors like the Federal Reserve's interest rate that is important for near-term price action as we saw earlier.Now, although gold's recent correction has gotten a lot of investors concerned, we can see that even during gold's repricing during the 1970s, it saw multiple double-digit corrections including a 50% decline in 1974.
But those declines turned out to be massive long-term buying opportunities for gold because the broader macro and monetary conditions that were causing gold to move higher were still in place.We believe gold is in a very similar situation today.The same forces that have been pushing gold higher over the last few years, a loss of trust in the dollar system, central banks buying gold, and a new monetary system being built around it, these are all still inplace and accelerating.In fact, if we overlay the price of gold from the 1970s onto today, gold seems to be loosely following a similar trajectory.While $20,000 gold is fun to think about, we actually think that $10,000 is a very serious target for gold in just the next few years.And that would essentially mean that gold experiences yet another run like we had between 2023 and 2025.
Now, for some context, UGL, a leveraged gold ETF, rose by 700% during this gold rally.We could very much be looking at these kinds of returns playing out again right ahead of us as these themes continue to play out.These are the last moments where investors are going to be able to adopt a strategy that actually takes advantage of this, which is why we've been rushing to finish our gold strategy as quickly as we can to getthis out while we still can.This is something that we've been working on for years now, and that is specifically designed to capture these kinds of moves on gold and to tell you when to be aggressively exposed to gold and when you should bebooking profits and scaling back.This is a strategy that fits extremely well into our existing stock market strategy.So for the launch of our strategy, we're giving you both our gold and stock market trading strategies for the price of one.
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