In the past 24 months, the price of gold has hit 39 all-time new highs, which is the most in nearly a half century. Silver has also been on the rise of late, reaching heights not seen in over a decade. Much of this has been traced to stockpiling by China, Russia, and other nations. 

24/7 Wall Street Insights

• The proposed BRICS asset backed Unit settlement currency is behind the escalation of gold, silver and copper prices in the global precious metals markets. This can undermine the fiat US dollar.
• President Trump already has the blueprint for a US dollar response that was designed by economist Judy Shelton that can be deployed, if needed.
• While there are several dozen precious metals mining stocks available, the ones paying higher dividends can provide a good income hedge in the event that the Unit’s release is delayed or the US dollar’s status is no longer threatened. 
• Sit back and let dividends do the heavy lifting for a simple, steady path to serious wealth creation over time. Grab a free copy of “2 Legendary High-Yield Dividend Stocks“ now

As an economic coalition, BRICS (Brazil, Russia, India, China, South Africa) already makes up 32% of global GDP and controls a sizable portion of the world’s commodities, and the over 40 nations seeking to gain membership bring their resources to the table as well. 

In a summit held in October, 2024, BRICS unveiled its plans for facilitating cross-border trade with member nations’ own currencies, and the creation of a BRICS settlement currency called “The Unit”. Both initiatives are designed to avoid use of the US dollar and to de-weaponize Washington’s perceived abuse of the dollar’s reserve currency status. The Unit is planned to be backed 40% by gold and 60% by member nations’ currencies – ostensibly backed by their respective commodities, i.e. precious metals, rare earth minerals, oil, etc. 

Donald Trump, Judy Shelton, and the US Response

The imminent dissemination of an asset backed currency into the international markets at large can potentially wreak havoc on the fiat US dollar. This can trigger a mass selloff of US Treasury Bonds held abroad from nations who no longer need US dollars for food, medicine, and other necessities. The trend towards making The Unit a reality appears to be real, as gold, silver, and copper buying has escalated prices to new recent highs prior to a pullback after the US 2024 elections. German Foreign Minister Annalena Baerbock has admitted to growing German ties to BRICS, which could strengthen the Unit even further within the geopolitical and international commerce arenas.

Fortunately, President Donald Trump anticipated the threat to the US dollar years ago. During his 2016 campaign, he proposed a return to the gold standard, and had devised a plan with economist Judy Shelton, whom he had nominated for the Federal Reserve in 2019. 

The Mining Stock Play, and The Dividend Kicker/Hedge

Although there are numerous precious metals mining stocks, the majority of them do not pay dividends, or if they do, they are usually in the 1%-3% range. However, there are a few, such as the ones in the list below, that stand out with dividends of 5% or higher. In the event that the Unit’s release is delayed or that a US dollar reset to an asset backed currency is no longer a concern, this will result in precious metals stock prices plateauing. As such, those stocks with hefty dividends will at least have a chance of a net profit investment. If the stocks continue to run, the corresponding dividends will proportionately lower the net base price, adding to the ROI. Quoted yields are baked on market prices at the time of this writing. 

Vale, S.A.

Vale, S.A.  (NYSE: VALE) – 17.39% yield

One of the most resource rich nations on the planet, Brazil has a number of multinational companies that handle the cultivation, development, production and sales of those raw materials and commodities. With a $45 billion market cap, Vale S.A., headquartered in Rio De Janeiro, is one Brazil’s top conglomerate entities.

The huge amount of energy required to power AI and the proliferation of data centers needed to operate AI means that the corresponding electrical infrastructure must grow commensurately. As such, this means that copper electrical wire demand is expected to soar in the near and forthcoming future. This overwhelming power demand is also a part of what is fueling the return to oil and gas, since wind and solar power sources are proving inadequate for the task.

Since the release of ChatGPT, copper prices have gained over 20%. Singaporean commodity trading titan Trafigura estimates that the combined needs of cumulative growth in AI, electricity demand, and EVs will create an added demand of 10 million pounds of copper over the next 10 years. Vale S.A. ‘s Salobo copper mines are the largest in Brazil. The company. has already budgeted $3.3 billion to expand its copper production to 500,000 MT per year by 2030 from its 326,000 high of 2023.

PT Aneka Tambang TBK

PT Aneka Tambang  TBK (OTC: PAEKY) – 10.58% yield

Indonesia is rich in numerous commodities, minerals and precious metal deposits. Indonesia, Thailand, Malaysia, and Vietnam were announced as “partner countries” of BRICS and prospective future member nations earlier in 2024.

Headquartered in Jakarta, Indonesia, PT Aneka Tambank TBK was founded in 1968. It is a vertically integrated mining and metals company. Its Precious Metals and Refinery segment concentrates on gold and silver mining, processing, refining, and marketing. Other mining products include bauxite, alumina, nickel, iron, and coal. The company’s export business in Europe and Asia includes a number of blue-chip customers. 

Fortitude Gold Corporation

Fortitude Gold Corporation (OTC: FTCO) – 8.59% yield

Colorado Springs headquartered Fortitude Gold Corporation is a gold and silver mining company. With ownership of five gold mine properties in Nevada, its flagship project is the Isabella Pearl, which is 10,400 acres. Fortitude’s proven reserves can potentially yield up to 220,000 oz. of gold and 1.3 million oz. of silver. 

The company’s progress is ongoing. Fortitude gold recently announced in November that multiple oxide gold drill intercepts were found at and near the surface from the East Pit located on the County Line Property. Intercepts included 12.19 meters grading 1.06 grams per tonne (g/t) gold, 4.57 meters grading 2.26 g/t gold, and 0.67 meters grading 11.90 g/t gold.

IGO Ltd. ADR

IGO Ltd. ADR   (OTC: IIDDY) – 7.36% yield

IGO Ltd. is a South Perth, Australia based mining company founded in 2020. Its gold operations include a 30% stake in the Tropicana Gold joint venture in Western Australia. IGO also produces silver, and has a number of copper mining activities in Western Australia, Northern Territory, South Australia, and in Greenland. 

One of its primary mines is the Nova Nickel-Copper Cobalt Project. Located in Western Australia, east of Norseman, it’s an underground copper and nickel mine and processing operation. 

B2Gold Corporation

B2Gold Corporation (NYSE: BTG) – 5.69% yield

Not unlike other industries where the number of executive players is a relatively small group where many know each other, mergers and acquisitions within the previous metals sector may spawn spinoffs or new companies with familiar, experienced decision makers at the helm.

B2Gold Corporation is a Vancouver, Canada headquartered company founded by former executives as a result of mergers and acquisitions including Berna Gold (bought by Kinross Gold), Central Sun Mining, Auryx Gold, CGA Mining, and Papillon Resources. It owns and operates Gold mines in the Philippines, Mali, and Namibia.

SSR Mining Inc.

SSR Mining Inc. (NASDAQ: SSRM) – 5.26% yield

Based in Denver, CO. SSR Mining (formerly Silver Standard Resources) is the owner of the largest silver mine in Argentina. It also has gold, copper, lead and zinc mining operations in the Battle Mountain-Eureka area of Nevada, the Çöpler mine in Turkey, and the Seabee mine in Saskatchewan, Canada.  

Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.