The BRICS nations - Brazil, Russia, India, China and South Africa - have expanded their gold holdings drastically in a bid to shift away from US-dollar-denominated
reserves. As per the data shared by Northern Miner, BRICS countries have increased their gold’s share of their total reserves by 102% since 2020. The massive spike was the outcome of their central banks going on a gold buying spree and also the rise in the price of yellow metal. At the same time, the Western countries witnessed a meagre increase of just 12% in the same period. This growth can be mainly attributed to price appreciation rather than new tonnage. This widening gap highlights the accelerating global shift away from the dollar and signals a strong structural driver for sustained gold demand in the years ahead. Read Also: RBI’s Gold Reserves Cross 880 Tonnes — Why India’s Bullion Pile Is Quietly Getting Bigger
The Global Gold Divide Widens: A Closer Look
According to the data, BRICS countries have increased gold’s share of their total reserves by 102% between Q3 2020 and Q3 2025. Gold rose from 6.4% to 12.9% of their aggregate reserves, driven by aggressive central-bank buying and rising geopolitical uncertainty.
In contrast, Western economies managed only a 12% increase in gold’s share over the same period, rising from 62.7% to 70.2% - an uptick attributed largely to gold-price appreciation rather than significant new gold purchases.
BRICS: Big Purchases, Bigger Ambitions
The data shows substantial additions across BRICS members:
- China increased its gold reserves from 1,948 tonnes to 2,304 tonnes.
- India expanded from 668 tonnes to 880 tonnes.
- Russia boosted holdings from 2,299 tonnes to 2,330 tonnes.
- Brazil, South Africa, and others also posted meaningful increases.
This heavy buying aligns with broader BRICS ambitions to reduce reliance on the US dollar amid rising geopolitical tensions and discussions around alternative settlement systems.
West: High Gold Share, Modest Additions
Western countries still hold far more gold in absolute terms, but most saw limited growth:
- The US remains dominant at 8,133 tonnes, with no major change in holdings.
- Germany, Italy, and France recorded only marginal increases.
- The UK, Canada, and Australia added small amounts, reflecting a cautious approach.
For most Western economies, rising gold valuations rather than new purchases account for their higher gold-to-reserves ratios.
A Deepening Gold Divide
The widening gap in reserve strategies underscores a global move toward de-dollarisation, with gold emerging as a preferred hedge for emerging-market powers. The report suggests this divergence could act as a “powerful structural catalyst” for sustained gold demand in the years ahead.
As BRICS expands, now including additional members beyond the original five, its collective purchasing power and shared intent to diversify reserves may further tilt the global gold market.
Why the RBI Is Buying More Gold
The RBI is increasing its gold purchases and trimming US treasury exposure mainly due to growing dollar volatility, experts say. Madan Sabnavis of Bank of Baroda notes that “the dollar has been volatile in recent years, and gold offers a more stable hedge.” With the dollar index slipping from nearly 110 in January 2025 to below 100, EY India’s DK Srivastava says “it’s prudent for RBI to increase gold’s share.”
The central bank has also repatriated 214 tonnes of gold since September 2022, a move L&T’s Sachchidanand Shukla says “strengthens India’s foreign exchange base and reflects a global shift toward gold as a stable asset.”
Srivastava adds that as crude prices fall and USD reliance declines, India could benefit through higher trade volumes and larger RBI dividends. Experts expect the RBI to continue building gold reserves to reinforce long-term financial stability.
