1/ 🧵 EXPLAINED: “BRICS gold-backed currency” (the UNIT) — and why stackers should care.
Lots of noise. Some signal. Here’s the clean version.👇 **
2/ First: BRICS has NOT officially adopted a single common currency (despite years of headlines). Even BRICS officials have repeatedly emphasized national-currency settlement over a new shared currency. **
3/ So what is “UNIT” actually? UNIT is best described as a proposed settlement / unit-of-account concept linked to a basket:
✅ gold + ✅ BRICS currencies often tied to the IRIAS framework — but not an official BRICS policy instrument. **
4/ The core idea proponents push: Measure currencies in gold terms (gold as the reference), not gold in currency terms.
That’s a philosophical flip — and it matters if it ever scales. **
5…
1/ 🧵 EXPLAINED: “BRICS gold-backed currency” (the UNIT) — and why stackers should care.
Lots of noise. Some signal. Here’s the clean version.👇 **
2/ First: BRICS has NOT officially adopted a single common currency (despite years of headlines). Even BRICS officials have repeatedly emphasized national-currency settlement over a new shared currency. **
3/ So what is “UNIT” actually? UNIT is best described as a proposed settlement / unit-of-account concept linked to a basket:
✅ gold + ✅ BRICS currencies often tied to the IRIAS framework — but not an official BRICS policy instrument. **
4/ The core idea proponents push: Measure currencies in gold terms (gold as the reference), not gold in currency terms.
That’s a philosophical flip — and it matters if it ever scales. **
5/ Why stackers care even if it’s “just a pilot / concept”:
Because any trade instrument that anchors to gold nudges the world toward: ➡️ more gold in reserves ➡️ more gold in settlement thinking ➡️ less blind faith in paper IOUs **
6/ Now connect the dots to the REAL driver: Capital markets are enormous. Metals are tiny.
SIFMA: global fixed income ~$145T (2024), global equity mkt cap ~$126.7T. **
7/ That means even a small asset reallocation from bonds/equities into physical metal can move price violently.
This is Jensen’s whole point: the “repricing” isn’t mystical — it’s math. **
8/ Meanwhile, the plumbing is already creaking. Reuters documented a London silver tightness / liquidity crunch (and how little “free” metal is actually available because much is tied up/allocated). **
9/ Translation:
When everyone realizes “paper claims” ≠ “metal on demand,” the market doesn’t gently adjust… …it gaps. **
10/ Add fundamentals:
UBS has discussed a very large silver deficit outlook for 2026 (hundreds of millions of ounces) in a ~1.34B oz demand framework. **
11/ So why do bullion banks keep calling “the top”? Because if you’re structurally committed to paper leverage, your job is to: 🗣️ talk it down 📄 roll it forward 🧯 manage confidence (Price discovery is inconvenient.) **
12/ Here’s the stacker takeaway:
If a gold-referenced settlement concept gains traction at the same time London/COMEX tightness shows up… …you get a feedback loop:
more demand → more stress → higher price → more demand. **
14/ Bottom line:
Whether “UNIT” becomes real policy or not, the direction-of-travel is clear:
🌍 the world is experimenting with settlement outside the dollar
🥇 gold keeps creeping back into the monetary conversation
🥈 and silver… is the tiny market with the biggest torque **
15/ Stackers:
you’re not early because you guessed a date.
You’re early because you chose the asset that breaks paper games when trust cracks.
🔁 Repost if you want the “paper vs physical” crowd to read something uncomfortable.
#Silver #Gold #BRICS #SoundMoney #PreciousMetals **
@threadreaderapp unroll **
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