Gold prices have suddenly jumped around the world, and many investors are asking what’s behind this rise. The reason is not just inflation or demand — it’s a big global shift happening quietly. Countries like China, Russia, and other BRICS nations are trying to avoid using the U.S. dollar in trade. Instead, they are moving towards gold as a trusted currency for global value.
This change is one of the key reasons why gold prices are going up, while silver may remain risky for short-term investors.
Why BRICS Countries Are Moving Away From the Dollar
For decades, most world trade has been done using U.S. dollars. But now, several countries in the BRICS group (Brazil, Russia, India, China, South Africa) are trying to create a financial system that does not rely only on the dollar.
These countries are increasing their gold reserves and making trade deals using local currencies or gold-based payments. Gold is being treated like a global currency, trusted across borders, unlike paper money which depends on politics or inflation.
Because of this shift, demand for gold has grown sharply — and that demand is pushing prices to new highs.
Gold vs Silver — Important Difference You Must Know
Many investors think gold and silver are similar, but they are not.
- Gold is seen as a currency and store of value. Central banks and governments hold it as part of their reserves.
- Silver is mainly an industrial metal used in electronics, solar panels, and manufacturing.
That means silver’s price depends more on industry demand and global economic conditions. When the economy slows down, silver can fall sharply.
So, while gold is used as a safe-haven asset, silver behaves like a market commodity — higher risk, higher volatility.
If you are buying silver, be cautious. Silver can rise fast, but it can also drop suddenly.
Gold ETF vs Silver ETF vs Physical Gold — Which Is Better?
When investing in precious metals, you have two main choices — ETFs or physical metal.
Gold and Silver ETFs
- Easy to buy and sell on the stock market.
- No need to store or secure the metal.
- Low maintenance and good for short-term investors.
- But you don’t actually own physical gold or silver; you just hold units that track their prices.
Physical Gold or Silver
- You hold the real metal — coins, bars, or jewelry.
- Best for long-term saving or emergency reserves.
- Needs safe storage and may include making or storage costs.
Best choice: A mix of both. Hold some physical gold for long-term safety and some gold ETFs for flexibility. Avoid going heavy on silver unless you understand the risk.
When Could Gold Prices Go Down?
Gold will stay strong as long as countries keep avoiding the U.S. dollar and global conflicts remain high. But for gold to fall, a few major changes must happen:
- BRICS countries start using the dollar again in trade and reserves.
- Global wars or political tensions reduce, creating peace and stability.
- Trade wars between countries settle down, boosting global growth confidence.
- Interest rates rise strongly, making gold less attractive compared to bank returns.
- Central banks stop buying gold and switch back to paper reserves.
Until these factors change, gold may continue to move upward or remain stable at high levels.
Silver May Not Follow Gold
Remember, silver is not a currency. It may benefit slightly when gold rises, but if industrial demand weakens, silver could fall faster. That’s why experts say — buy silver only with caution and in smaller quantities.
Final Thoughts
The world is changing. As BRICS countries move away from the dollar and turn toward gold, the demand and price of gold are likely to stay strong. Silver may not offer the same protection because it’s not used as currency.
For most investors, gold ETFs or physical gold are the safest and smartest options during uncertain times. If you are planning to invest this festive or financial season, focus more on gold — and be careful with silver.
This article is for educational and informational purposes only. It is not financial or investment advice. Always consult with a licensed financial advisor before making any investment decisions.