What is a dollar revaluation?

A dollar revaluation occurs when the government officially changes the dollar's value relative to gold or other assets. Historically, in 1934, the US revalued gold from $20.67 to $35 per ounce, effectively devaluing the dollar by 41%.

How would a dollar revaluation affect my savings?

While your bank balance would remain the same numerically, the purchasing power of those dollars could decrease significantly. If gold were revalued to back current debt levels, the cost of goods and services would theoretically rise to match the new monetary standard.

What indicators suggest a dollar revaluation might occur?

Key indicators include: record central bank gold purchases, rising debt-to-GDP ratios, BRICS currency development, digital price infrastructure deployment, and gold reaching new price highs. Our Risk Index tracks these factors in real-time.

Has the US dollar been revalued before?

Yes. In 1934, President Roosevelt revalued gold from $20.67 to $35 per ounce under the Gold Reserve Act. In 1971, President Nixon ended dollar-gold convertibility (the 'Nixon Shock'), fundamentally changing the global monetary system.

The BRICS alliance is no longer just talking about de-dollarization—they're building the infrastructure to make it happen. With plans for a gold-backed digital currency launch in 2026 and central banks accumulating gold at historic rates, the petrodollar system faces its most serious challenge in de...

BRICS 2026 Currency: Is a Gold-Backed Alternative Coming for the Dollar?

The Gold Accumulation Strategy

BRICS nations now hold over 6,000 tons of gold, representing approximately 20-21% of global reserves. Their stated goal is ambitious: reach 65-70% of global gold reserves by 2026 through aggressive purchasing and domestic production.

The numbers tell the story. China extended its gold buying streak to 14 consecutive months in December 2025, adding 30,000 troy ounces. Year-to-date purchases reached 254 tons. Brazil and China together poured $1.88 billion (12 tons) into gold in November 2025 alone. Russia and China lead production, with 380 tons and 340 tons respectively in 2024.

| Country | 2024 Gold Production | Recent Purchases | Strategy | |---------|---------------------|------------------|----------| | China | 380 tons | 254 tons YTD 2025 | Aggressive accumulation | | Russia | 340 tons | Ongoing | Production + reserves | | Brazil | N/A | 12 tons (Nov 2025) | Joint purchases with China | | India | N/A | Increasing | Reserve diversification |

Central banks globally bought 166 tons in Q2 2025, up 41% from the previous period. Poland led 2025 purchases among non-BRICS nations, signaling that the gold accumulation trend extends beyond the alliance itself.

The 2026 Currency Plan

At the 2025 BRICS summit, member nations agreed on infrastructure for local currency trade and outlined plans for a digital gold-backed currency launch in 2026. This represents a fundamental shift from discussion to implementation.

The proposed currency would be backed by physical gold holdings, providing a credible alternative to the dollar for international trade settlement. While full displacement of the dollar remains gradual—the greenback still accounts for 58% of global FX reserves—the trajectory is clear. That figure stood at 71% in 1999.

Russia has already compressed its dollar holdings dramatically, from 41.5% in 2022 to between 13-18% in 2024. This demonstrates that major economies can reduce dollar dependence when motivated to do so.

Petrodollar Erosion

The petrodollar system, which has underpinned dollar dominance since the 1970s, faces mounting pressure. Saudi Arabia and the UAE have opened discussions about non-USD oil settlements. Iran and Saudi Arabia are exploring yuan-denominated trades. World oil transactions are increasingly diversifying into yuan and euros.

The Trump administration's intervention in Venezuela represents an attempt to shore up petrodollar flows, aiming to secure $100 billion in investments and maintain USD dominance in oil markets. However, this defensive posture itself signals recognition that the system requires active protection.

Repatriation Pressures

While no major gold repatriation announcements emerged this week, ongoing pressures continue. European nations, particularly Germany and Italy, face calls to retrieve an estimated $245 billion in gold currently held in U.S. vaults. The Taxpayers Federation has sent letters urging repatriation amid Trump-era policy uncertainties.

Any significant repatriation movement would signal declining trust in U.S. custodianship of foreign gold—a symbolic and practical blow to dollar hegemony.

What This Means for Dollar Revaluation

The BRICS gold strategy creates a potential forcing function for U.S. monetary policy. If a credible gold-backed alternative currency emerges, the United States may face pressure to address the disconnect between the book value of its gold reserves ($11 billion) and their market value (approximately $1 trillion).

A dollar revaluation against gold would represent acknowledgment that the currency has lost purchasing power—precisely what gold advocates have argued for decades. The BRICS initiative may accelerate this timeline.

The Counterargument

Dollar skeptics should acknowledge the currency's resilient network effects. Global trade infrastructure, debt denomination, and financial system architecture remain heavily dollar-dependent. Full displacement would require not just an alternative currency but wholesale reconstruction of international finance.

The more likely scenario involves gradual erosion rather than sudden collapse. BRICS nations are building optionality, not demanding immediate regime change. For investors, this suggests a multi-year transition period where gold serves as a hedge against uncertainty rather than a bet on imminent dollar failure.

Positioning for the Transition

Whether the BRICS currency launches on schedule or faces delays, the underlying trend of de-dollarization and gold accumulation appears durable. Central banks are voting with their reserves, and that vote increasingly favors gold.

This analysis is for informational purposes only and does not constitute financial advice. Currency and commodity markets are volatile and subject to geopolitical risks.

References

[1] Seeking Alpha - "China's central bank extends gold buying streak to 14 months as prices hit records" (January 2026) [2] World Gold Council - Central Bank Gold Purchases Q2 2025 [3] BRICS Summit 2025 - Currency Infrastructure Agreement [4] Reuters - Global FX Reserve Composition Data (2025)