What’s the Right Price for Gold? (Uncut) 02-16-2025

What’s the Right Price for Gold?

The Morgan Report with David Morgan. Discover how to build and protect your wealth at themorganreport.com. David Morgan with the weekly perspective for the week ending 14 February, 2025. Well, I’m gonna start off here on Twitter as I’ve done in the last few weeks.

First one up from our Twitter handle, SilverGuru22. This is one to pay attention to. China imposes export controls on five minerals important for defense.

Another one here, China’s car sales post biggest drop in almost a year in January. Remember, there’s a great deal of platinum, palladium, especially palladium used in the Cadillac converter market. So that would put less demand into that space.

Another article about platinum and then a lot going on in the gold and silver markets. As usual, James Anderson posted a great one this weekend, you can look at. And another one from James Anderson showing the shadowstats.com inflation adjusted price, showing that the price now based 1980 would be $1,349 per ounce.

And that’s covering the last 45 years of inflation. I wanna talk a bit about this because there’s been a lot of talk, a lot of videos talked about revaluing gold. Really gold doesn’t revalue, gold is the constant.

What revalues is the pieces of paper it takes to trade or to buy an ounce of gold. And that number of course varies daily. It’s a worldwide market as we all know.

I like to point out as a little bit of math on this situation. So what we’re looking at here is from the St. Louis Fed. This is base money, you can look it up, don’t know what that means.

That’s basically as raw measure because gold is not credit. Gold is gold as JP Morgan said. Gold is money and everything else is credit.

So if you were going to make a gold coin standard at 100% cover ratio, you could use base money. Jim Rickards does a different model. Nothing against the way Jim does it.

I’m not saying he’s correct and I’m incorrect or I’m correct and he’s incorrect. But it’s a hard look at the money supply depending on how you want to define it versus the amount of gold that the treasury says we have. So if you note this number here, you will see that we have in billions, 5,604 billions in the base money total.

So if we take 5,604 in billions and divide it by what the treasury states we have in the treasury, which is 261 million. So we’re going millions into billions. You get that number and you have to multiply by 1000 because we have to make it the numerator denominator correct.

So that means that for a US Federal Reserve unit denomination, i.e. known as a US dollar or a Federal Reserve note more specifically, it would take a gold cover of 21,000 in order for the amount of base money to be covered 100% by gold. What’s interesting about this is this revaluation talk puts gold at the current price of roughly 3,000 ounce. If you do that arithmetic, you find out it’s like $783 billion.

Well, if the debt is officially in the 30 plus, so if the debt is currently $36.48 trillion and you’ve got $783 billion, if you let’s say sold the gold, took in foreign currencies or Federal Reserve notes for it, you wouldn’t really be paying down the debt that much. And I think that’s the point. On top of that, some of you know, and perhaps some don’t, that the true national debt is actually a bigger number than that.

Catherine Austin Fitz and Professor Sizemore did a study in a few years now on off budget items that are at law legal. You just basically spend money and not have to show it on the books. And that was at the time $20 trillion.

It’s actually greater than that now. So if you add that in, you’re looking at $56 trillion. So 783 billion really doesn’t do that much.

Plus why would you give up an asset like gold for paper? You wouldn’t. Of course, the United Kingdom did under Brown and the Canadians sold off all their national gold as well. So hopefully the US isn’t going to do something similar.

And I would just like to remind everyone to go ahead and sign up for the free newsletter right here on the landing page. And that way you get our mailings every week. We put out about three per week.

Gonna do an interview with an interesting gentleman I’ve known for years now. And he wrote me recently and said, they’re meaning the banking elites, they’re prepping for a controlled demolition of the existing federal financial system to quote unquote, reset it or digitize it. Existing United States government treasury bond holders will be given the option to swap their holdings for 100 year digital bonds or cash in their current holdings at 80 cents to the dollar.

This is my prediction, not my David Morgan, this gentleman. Individual states who’s established bullion banks will issue their gold back digital currency as an alternative to the Fed’s CBDC version. So an interesting hypothesis, I’ll call it that.

I’m gonna be doing an interview with him. I’ll do a podcast. Hope to get that accomplished next week or the week after.

If you’re on the free email list, of course you’ll get an email talking about that podcast that will be posted for free on themorganreport.com website. So a lot to talk about. I’m not gonna go through any further.

I’ll keep this short and sweet. A lot to look at on this reval, but it’s interesting. And I wanna back off.

There’s one more thing I really need and want to say, and that’s Dr. Judy Sheldon, which I interviewed some time ago with her book, As Good as Gold, I believe is the title that’s on my desk this moment, but proposing that we go back and have a tie of the United States dollar to gold and have that link of stability. And that’s really what we want. Now, her proposal is a proposal.

She doesn’t say this is the absolute 100% solution. I really like her, I like her thinking, and I like her rather well thought out approach to bring it in in a manner that wouldn’t really disrupt the markets currently, but would or could put some more stability back into the system. So she may be, you know, I’ll give her credit that she may be the one that’s kind of gotten, let’s say the authoritarian class, thinking more about how would we implement gold back into the system? And that’s really the big question.

How would you do it? Would you reprice it? Would you put gold into the monetary system? Would you put it in the hands of the people? Would you just make it a bookkeeping entry and on and on it goes? Her proposal, of course, is to do a bond based on gold where you, at the end of the bond’s maturity, have the option to either get the fiat equivalent or gold itself. We’ll leave it there. David Morgan from the Morgan Report signing out with another Weekly Perspective.