Andy Schectman, the President and Owner of Miles Franklin Precious Metals, recently discussed with Kitco News’ Michelle Makori the potential for a major global financial reset that could see the revaluation of gold to $150,000 an ounce. According to Schectman, this reset could be driven by the upcoming 16th BRICS summit in Kazan, Russia, where countries will discuss significant monetary changes. Schectman highlighted ongoing de-dollarization trends, the introduction of a new common currency backed by gold, and the implementation of central bank digital currencies (CBDCs), all of which could drastically reshape the global financial landscape.
Schectman emphasized that the current system, heavily reliant on the U.S. dollar as the global reserve currency, is at risk of collapsing. He pointed to mismanagement of the U.S. dollar, the weaponization of the treasury, and record levels of gold accumulation by central banks as key indicators of a looming shift. He explained how the BRICS nations, through initiatives like Project mBridge and their exploration of a new currency are positioning themselves to challenge the dominance of the U.S. dollar in international trade. He said that these initiatives aim to reduce reliance on the dollar and introduce alternative payment systems that would enable participating nations to trade without using the U.S.-controlled SWIFT network.
Schectman believes this future currency, which is reportedly backed by 40% gold and 60% national currencies, could significantly undermine the U.S. dollar’s position. This could offer BRICS nations and other countries the ability to transact and settle payments in a more decentralized and less politically charged system. The BRICS nations’ move toward a gold-backed system could be seen as a countermeasure to the increasing devaluation of the dollar, fueled by massive debt accumulation in the U.S. According to Schectman, many countries have already taken steps to move away from the dollar, with some even banning the use of the greenback in domestic transactions. Central banks have also apparently been buying gold at unprecedented levels while reducing their dollar reserves, signalling a shift away from the dollar-dominated system.
Schectman said that the BRICS nations are not only looking to introduce a new global currency but are also working on creating an alternative global payment system that could rival the existing U.S.-led systems.
The concept of a gold-backed currency system, according to Schectman, is not far-fetched. He explained that the Bank of International Settlements (BIS) has already elevated gold to a Tier 1 asset, giving it the same status as U.S. dollars and treasuries. He believes that this, along with the unprecedented levels of gold repatriation by several central banks around the world, indicates that gold is once again being positioned as a central pillar in the global monetary system. Schectman suggested that if the BRICS nations successfully introduce this currency, it could set the stage for a complete reset of the global financial system, with gold playing a central role in the new framework.
Schectman also addressed the potential implications for the U.S. dollar. He warned that the continued weaponization of the dollar, coupled with excessive money printing and inflation, is eroding confidence in the currency. He emphasized that the U.S. government’s policies, including sanctions and the overuse of the dollar as a political tool, are pushing countries to seek alternatives. As the BRICS nations and their allies shift away from the dollar, Schectman predicted that the U.S. could face significant economic challenges, including higher inflation and a potential loss of its status as the world’s leading reserve currency.
In addition to the broader geopolitical implications, Schectman also discussed how the revaluation of gold to $150,000 an ounce could help the U.S. balance its books. He explained that such a revaluation could allow the U.S. to drastically improve its balance sheet by offsetting its liabilities with higher-valued gold reserves. This, he argued, could provide the U.S. with a path to restoring some economic stability, especially as its debt levels continue to rise at unsustainable rates.
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