Radio Sputnik: How realistic are the plans to create a unifying system for gold trade within the BRICS region?
David Gibson: I think it’s very realistic. I mean, even there were no detailed plans announced, there’s no reason why it can’t be done, as gold has been used historically as an instrument of trade for centuries. So it’s just a case of waiting to hear the details, but it’s very achievable.
Radio Sputnik: And how will this new unifying system work? Will this system be dependent on other trade hubs?
Radio Sputnik: And how will this initiative affect all the other global financial markets, namely American and European ones; and what about the world economy, is it going to affect that? What’s your assessment of that?
David Gibson: It’s going to affect (them) in a couple of ways. First, it’s going to reduce the US Dollar dominance in world trade; second, it will increase the price of gold on the world markets in general; third point, it’ll probably make the BRICS more independent of the US influence in regards of trade. However, nothing dramatic will happen to the market as a whole. Such an initiative will signal an important fundamental change and it benefits BRICS in general, for sure, in the long run; and it also puts pressure on the West to follow suit or lose out economically.