Thread by @honzacern1

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

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