Speculation has long existed that nations like China or Russia, or groups such as BRICS, ASEAN, OPEC, the Economic Community of West African States (ECOWAS), or the African Continental Free Trade Area (AfCFTA), might start using gold for trade or establish a common gold-backed currency to dethrone the dollar and impoverish America. However, gold cannot function as currency, and with the US holding the most gold, it would remain the richest country, unraveling this narrative quickly.
The countries with the largest gold reserves are the United States (8,133 metric tons), Germany (3,352 metric tons), Italy (2,452 metric tons), France (2,437 metric tons), Russia (2,336 metric tons), and China (2,264 metric tons). Even in a gold-based world, the US still has the most.
The issue with using physical gold as currency is that every point of purchase would need the ability to weigh the gold and evaluate its purity. Additionally, creating small enough gold coins for minor purchases is impractical. For instance, the average price of a pack of gum in the US is $1 to $2, equating to 0.061% of an ounce of gold. This is less than a single grain of sand, making it an almost imperceptible amount.
Since gold is not viable as a currency, the next option is a gold-backed currency. However, no country or group has enough gold to support its GDP.
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