Gold Revaluation Will Unleash (Uncut) 03-22-2025

Gold Revaluation Will Unleash Pandemonium in the Markets, says Eric Yeung.

And they pump it up to, let’s say, $2 trillion, like you said, right? That’s, what, 20%, 30% of the external debt. That will solve all the problems. So they do that, and what happens then? That’s the bottom.

That’s the bottom gold price in US dollars. Because they will defend that. And they don’t even need to defend it, because it will be pandemonium.

It will be crazy. Everybody, me and you will be the most popular people on YouTube, probably. Two boring guys, right? So everybody will be in gold and silver at that point.

And then after the revaluation, they’ll probably take it up to $10,000. Monaco 64, home of alternative economics and contrarian views. Today, I have the pleasure of speaking with Eric Young, a.k.a. King Kong 9888 on X, if you want to find him.

He’s doing some great work about the precious metals market. Welcome again, Eric. Thank you, Mario, for having me on your show again.

You’re more than welcome. Thank you for being here as well. And I just wanted to let the viewers know that we’re speaking on Friday, March 21.

So with no further ado, Eric, and you’re talking about the US government and the fact that all this gold is flowing to the US, that they will probably be revaluing their gold, the US Treasury. So with that, could we move into what you covered recently, the US Treasury gold certificates, and that their face value is in US dollars, I think, not in ounces of gold, right? Correct. So a lot of people, they don’t really understand that US Treasury gold certificate concept.

It’s actually a ownership firewall. That’s why I call it. It’s actually, if you look at it from their perspective, it’s ingenious.

They have devised this firewall that will allow the US government or the US Treasury to maintain its sole ownership unencumbered and completely 100% totally owned by the US government. I’m talking about the 8,133 metric tons of gold. So how do they do that? So let’s go back to 1973, when they did, this is the last time when they did revaluation and when they asked the Federal Reserve to take the physical, sorry, to take the US Treasury gold certificates.

This is 1973. So starting in 1973, the premise is that the US owns the 8,133 metric tons of physical gold via the US Treasury, unencumbered, and free and clear. That means nobody has any claims on it.

This is where they started off with, 1973. That’s the premise. So they issued US$11 billion worth of US Treasury gold certificates to the Federal Reserve.

And why is that? Because that’s how much the 8,133 metric tons of physical gold was worth at $42.22 per troy ounce. So that was the face value of the gold certificates that they issued to the Federal Reserve. Now, the Federal Reserve, upon receiving that gold certificate, created $11 billion out of thin air and gave that money to the US Treasury at the US Treasury General Account, which is the TGA.

That’s the acronym, TGA. But the Federal Reserve did not have any claims on the 8,133 metric tons of physical gold that the US Treasury held. So you see how that worked, Mario? That’s basically the gold certificate is just a testament of the market-to-market value of the physical gold that the US Treasury held in 1973.

And all the Federal Reserve had claimed to was the fiat USD amount of $11 billion, which is the face value of the US Treasury gold bonds. Does it make sense at this point? I mean, I can answer any questions. It does make sense.

So because you look at the Fed’s balance sheet, they don’t say that they have certificates worth 8,133 metric tons. They just give the $11 billion fiat dollar amount. But one thing that’s interesting, Eric, from this certificate here is that it says $10,000 in gold payable to the bearer on demand as authorized by law.

So maybe, yeah, maybe this is an old certificate where they actually paid the gold. But because it looks here that, from what you said, the Fed will not be able to get the gold. So why do you think that is important? Does that mean that, like, they’ll never have to, like, give up any of the gold, right? And if they want to? Sorry, think about it, Mario.

That’s why the US Treasury is still keeping their physical gold, the 8,133 metric tons, at $42.22. Yeah, that’s right. That’s the reason, see? If the gold is revalued before, like, the next step, which I’m going to describe, right, then the Federal Reserve will have claim to the new value of gold, OK? Yeah. At that price, right? Like, they can’t do that.

So the next step, like, let’s, we fast forward 52 years to today, right? Let’s say the US Treasury want to revalue the physical gold, the 8,133 metric tons, and capitalize on it. By doing the same trick with the Federal Reserve, right? They have that magic money tree, spit out money. So what did they do? First, they, what they do, and this is all in one step, by the way, all in one step.

Before they even revalue the physical gold, OK? They would first pay the Federal Reserve the $11 billion. So that’s the first step. They would pay that off, right? With the old $42.22 per troy ounce.

So that’s settled. Does that make sense? Yeah, no, it does. And then- Pay that first, right? And then revalue, revalue it.

Yeah, that’s right. Then revalue. At like 3,500 bucks, right? And then they revalue to 3,500 bucks, and then they issue.

So this is a good point, Mario, because I didn’t even explain this part. I explained a lot of it, but not this particular part in my video. Now I’m explaining it in your video, OK? So this is important.

So the first step is they would not revalue first. They would first pay off the 1973 gold certificate at $11 billion at $42.22, US dollars per troy ounce of gold. OK? So they pay that off.

Second step, they revalue, market to market to whatever, right? Let’s use the example of 3,500 US dollars per troy ounce. Second step, they revalue. First step, they issue a new US Treasury gold certificate valued at a trillion dollars to the Fed.

And then the Fed would create, out of thin air, a trillion dollars, and then they would deposit that trillion dollars into the US Treasury general account. But all that, like all of what I just said just now, like the 2025 hypothetical situation, that all happens in one step, OK? One step at the Federal Reserve and the US Treasury. So they would just simply pay the US Treasury the difference, which is one trillion US dollars minus 11 billion in one step.

Yeah. So it looks like a good analogy, and I think you spoke about that. Let’s say the US Treasury is you or me, and the gold is our house.

So we mortgaged it in 1973 for 11 billion, and the Fed gave us the cash. And now, though, we’re broke, so we need to mortgage it again, but at a higher price because the house has gone up in value. So we do the same thing again.

That’s not a very good sign, is it, saying something is not well with the US Treasury? Well, it’s an accounting trick, right? But they are basically, like this is, I know you interviewed Judy Shelton. This is basically just like what Judy Shelton said in her book and in her many interviews. It’s unleashing, this is unleashing the power of the 8,133 metric tons of physical gold that the US Treasury has.

So they’re leveraging on it, right? And then on top of that, Mario, I wrote something on my ex today. I said they are probably double dipping the magic money tree. Why do I say that? Because on top of the 11 billion dollars that they got out of this US Treasury gold certificate deal with the Federal Reserve, the US Treasury probably lent out some, a lot, I wouldn’t even say some, a lot of this gold to the Fed over the years.

So this is a separate hidden deal altogether. Why do I say that? Our mutual acquaintance, Ronan Maney, has done a lot of research and he documented evidence of US Treasury physical gold being removed from deep storage to possible leasing outside of the US. So how would that work? Well, my thesis is that the US Treasury probably, like I said, lent out some of that physical, let’s say like 3,000 metric tons to the Federal Reserve for a small, I don’t know how big, right? Some lease fee, whatever the lease fee is.

So they get kind of like a rental income for the physical gold. And then the Federal Reserve probably lent their member banks, who are also bullion banks, by the way, like J.P. Morgan, for example, the Federal Reserve let these member banks take that physical gold for, again, a lease fee, whatever that rate is, to lease out to other people. So that’s where the, I wouldn’t say, I wouldn’t call it hypothecation, Mario, because you’re leasing it at this point, but whoever the end party is, if the end party also is claiming ownership of the gold, then that’s re-hypothecation.

But this is through middlemen, right? The Fed and the US bullion banks, they are middlemen. They are not the US Treasury. So the US Treasury did not directly sell the gold to a third party or fourth party.

They went through, probably went through the Federal Reserve and their member bullion banks. And that’s why, that would explain why there’s this huge rush of physical gold into the US in the last three months. Yeah, I guess in Judy Shelton’s book, she didn’t mention or not it, but I think a lot of people, after they read it, started saying, aren’t you gonna do an audit? And she said, yes, an audit would be good.

And I think they know now, the Treasury and the US government, that in order to make this work, people have to believe in it. Is that why? Because they could have just left things as they are and still claim to have 8,133 unencumbered. But I think the cat is out of the bag, so to speak.

So they need to do an audit. So they need to recall all the gold because some of that physical gold might not even be there in the depositories at Fort Knox and other places. Yeah, I think that’s what’s happening.

Like I said, I think it was leased out over the years and they’re trying to get it back right now. That’s it. Yeah, that’s right.

So that’s a separate deal, separate deal, okay? We got to remember that from the gold certificate deal. The gold certificate deal is one deal and that was done in 1973 and they might do it again, right? Yeah. But that’s not the leasing deal.

The leasing deal is something completely different that is hidden that we haven’t seen yet. But it would affect, it could affect the revaluation because it would, you know, if the gold isn’t there, what’s the point of doing the revaluation? But I agree with you that it’s separate. Did you see that Senator Loomis of Wyoming, she reintroduced the Bitcoin Reserve Asset Bill, Strategic Reserve? And in that bill on the next to last page, they spoke about this revaluation of gold, which would be done along with this bill, which is very interesting, I would say.

The question is when, whether this bill will actually get voted through. It’s only being introduced. Have you got any opinion on that? Well, the bill, I have it in front of me.

Let me read it to your viewers right now, okay? Yeah. The part that proves my point. Exactly, you know, the mechanics that I just described is correct, okay? I’m gonna read this.

So upon issue by the Secretary, each Federal Reserve Bank that receives a new gold certificate shall remit the difference in cash value between the old and new gold certificates to the Secretary for deposit in the general fund within 90 days. So that’s why people say, oh, this Bitcoin bill may not go through. You know, Loomis is out there just dreaming, right? It might not happen.

But I tell these people, I said, and some of these are my good friends, right? I tell them, this is so important. Because it describes exactly the mechanics of how the gold certificates work. It tells you right here, right? That you have to, that they are going to sell.

They’re going to basically remit the difference in cash value between the old and the new gold certificates. That’s the key, right? Because before this, people lined up to argue with me, saying that the US Treasury don’t need to pay the old certificate. If that’s the case, the wording won’t be like this, right? The wording won’t say that the remittance will be, right? That you have to, that they are going to sell.

They’re going to basically remit the difference in cash value between the old and the new gold certificates. That’s the key, right? Because before this, people lined up to argue with me, saying that the US Treasury don’t need to pay the old certificate. If that’s the case, the wording won’t be like this, right? The wording won’t say that the remittance will be a difference in cash, okay? And think of it, just one word, cash value.

That’s important. It doesn’t say gold. Nowhere does it say physical gold.

It’s cash value, because like we said, the gold certificate, all is specified is the face value, cash value of the gold certificate upon issuance. That’s it. So in just three sentences, it validates everything I said, basically.

Sorry, Eric. Yeah, no, I agree. And I just thought of something, Eric, because you probably heard of John Exter’s inverted pyramid.

Yes. So here we are. This is a modern version, because I don’t think he added derivatives to his.

So if this whole system up here is under threat and is almost collapsing, if you revalue gold, this base will become a lot bigger and it’ll be easier to sustain all the credit, isn’t it? Is that why you think they’re doing it? Or they think they will do it? I think definitely that comes into play. And also the fact that if they are going to do the US Treasury gold certificates, they have to revalue the physical gold. There’s no other way.

You can’t issue US Treasury gold certificates if the value of the gold on your bonding sheet is $42.22. I mean, then how much gold bonds can you issue, right? If you’re the US Treasury and you’re valuing your gold at $42.22. So I think the cash components from the Fed is only half of it, or maybe even less than half. The US Treasury gold bond, I think, is going to be a huge component of this revaluation. So you think, because in Judith Shelton’s book, she talks about it as these Treasury trust bonds, as she calls it, as helping stabilize the value of the dollar.

It doesn’t seem to me that they would be issuing that much of it, but you seem to think it’s different. They’re gonna be more prone to issuing more of these gold-backed bonds, you think? I think if they go with what Jim Bianco said, which is serial coupon, and Judy also said that, right? Like if they issue these gold bonds, it will be serial coupon. But Jim said that Donald Trump is thinking of issuing serial coupon bonds, century bonds, to his allies, and forcing allies to buy it or convert what they have right now in US Treasuries to these serial coupon bonds.

I think they have to have the gold component to it. Otherwise, I just don’t see how the allies can swallow that poison pill. It’s just not gonna happen, because serial coupon is one thing, but if you buy these century bonds from the US government and your underlying is fiat USD, in 50 years you’re gonna lose everything.

But if it’s gold bonds, and somehow the gold bonds have, you know, it’s not these bogus gold certificates. It actually has the weight and purity of the gold on it when you buy the gold bonds. That makes sense, right? Because like if you buy it, let’s say 2026, you buy, I don’t know, like $100 billion worth of this US Treasury gold bonds.

And that’s, let’s say, equivalent to 100 metric tons. I’m just, I don’t know the exact number. I’m just using it as a placeholder, right? 100 metric tons of physical gold.

You get that back in 50 years. You get the gold back, right? So you won’t lose the depreciation of the US dollars. That’s the whole point of Judy Sheldon’s premise, right? Yes, I understand.

So, yes, yes, yes. I mean, it might even be less than a century bonds. Could be like 50 years, like Sheldon.

50 years. She even talks about five or 10 year bonds as well. I think that would be more credible.

Yeah, so this is something that I think, like, you know, if they do, let’s say 10, 20 years, and they shove it down the throats of, let’s say, France and Germany and Japan, it’s something that is doable. It’s not undoable, right? If the underlying is physical gold, that’s why I think it’s gonna happen, because it’s not just some guy off the street telling me this, it’s Judy Sheldon telling me this. That’s why I think it’s believable, right? And, you know, like she said, you do all this, you’ve got to revalue the gold first.

And here we are. And it’s funny how everything kind of like, you know, the timing, right? Is it a coincidence? Judy Sheldon came off her book proposing this idea. And she always said, you know, since I think last year that you have to, that the US government had to have to audit the gold.

And then what happened? In 2025, Elon Musk and Donald Trump all of a sudden said, they want to audit the gold. And then boom, all of a sudden, you know, the US imported 2000 plus metric tons of gold. And by the way, they can only track around 700 of that through the US trade data.

The rest is untraceable. And Ron and Mandy proposed that that’s because it’s probably monetary gold. You don’t need to report monetary gold imports to US trade data.

But see how all that kind of works out and like ties in. Yeah, so I mean, I’m just looking at evidence, right? Yeah. And just one thing I wanted to add.

There’s been a lot of people recently complaining that nothing has been said anymore about the audit and when it’s gonna be. But the reason that it could be so is because they’re still importing a lot of gold because they need more than 2000 to do the audit. So they might take another two or three months or so and then they’ll audit.

And then I think the first gold bond will be issued next year, July 4th, 2026, which is the 250th anniversary of the Declaration of Independence. July 4th is a holiday, Mario. They probably do on July 5th.

Yeah, that’s right. But yeah, or July 3rd. Or July 3rd.

Anyway, so I think, yeah, I agree with everything you just said. I think all this is going to happen. Like, I mean, it’s already happening.

Yeah. That’s my opinion. That’s my opinion.

What are you doing to profit from this? Because we like to talk about all this, but we’re not like a charity or saints. Yep. And yeah, maybe if you don’t mind telling the viewers what you’ve been doing and what you plan to do.

Well, I mean, this is not investment advice. It’s just what I’m doing for myself. I hold a lot of physical gold.

A lot of people know that. I show it. I show my gold bars, like some of it.

I hold quite a bit of physical silver, actually. Even though it’s cumbersome, it’s big in size because it’s so cheap. It’s only at around $33 right now per four ounce.

So I hold a lot of that too. But I also hold a lot of minors. So I hold a lot of senior, mid-tier, and junior minors.

Millions of dollars worth, actually. And I bought a lot of those at their lows in 2023, at the end of 2023, when they dumped to oblivion. So I bought a lot at that time.

So a lot of them already went up quite a bit, but I think the best is yet to come for the minors. Because a lot of them, you know, a lot of them moved, a lot of them haven’t. A lot of them are still vanquishing at the bottom kind of thing.

So I think if gold and silver, especially silver, if silver breaks $40, I think some of these minors, a lot of it, actually, are going to, they’re going to move up so quickly that it’s gonna rip people’s faces off, for lack of a better word. That’s what I believe. That’s what I believe.

And I know you like a couple of names that I like, Mario. So, you know, we talked about it, right? So. That’s right, that’s right.

And yeah, I think, yeah, there’s a lot of wealth to be made from this move. And the other thing, Eric, is that even the major mining companies, they’re still undervalued if you think how much they’re making on each ounce of gold. So it’s not just the mid-tier and the juniors, I would say.

Absolutely. I think they will all move. Yeah.

Up. Yeah. You know, so, you know, we talked about, remember we talked about B2 gold a bit, right? After we talked, the thing went up 20% in a week.

Yeah. So these things, it’s just unpredictable. Yeah.

Nobody knows. And that’s a senior right there, right? So, you know, and then even the royalty companies are moving up in value. You think it’s gonna be a little bit like during the dot-com bubble at one point where everything with gold or silver or mining, anything you buy will go up? Sure.

I mean, if this goes according to their plan, I’m just putting the US government’s hats on, what I would do if I were them. Right now, keep it a secret because they’re accumulating. Let’s say, or just deny, right? Officially deny everything that people throw in your way.

So, you know, if people ask you, are you gonna revalue? No, no, no. Okay, every single time. Six months later, five months later, whatever, you’ve got enough, you start telling people that you’re gonna do it, either unofficially or, you know, indirectly, officially.

So what happens at that point? Gold is probably gonna shoot up to, this is all hypothetical, you know, speculation on my part, okay? So at that point, gold might shoot up to 5,000. Yeah. 5,000 US.

That’s, how much is that? If they do the, you know, US treasury gold bond trick? That’s approximately $1.3 trillion if my calculations are correct. It’s a lot of money. Yeah.

1.3 trillion. Yeah, and I mean, foreigners own 8 trillion worth in treasury. Treasury.

So if you’ve got 1.3 trillion of gold backing that, that’s not a bad percentage or cover. Exactly. It might even overshoot, Mario.

Might overshoot 6,000. If it’s 6,000, what are we looking at? We’re looking at almost $2 trillion, right? Almost $2 trillion. Yeah, yeah.

So that’s a lot. That’s almost, well, it’s not almost 10%. It’s almost 8% of the US national debt, right? But it’s also about, it’s more than 40% of the debt owed to foreigners.

Yeah, so. That’s really, that would be enough to back, to put the dollar on sound footing again. Very good point, Mario, because that may be what they’re looking at.

They are not even looking at the overall debt because who cares about the internal debt, right? Yeah. It’s the external that they worry about. Yeah, yeah.

So if it’s eight and they pump it up to, let’s say, 2 trillion, like you said, right? That’s, what, 20, 30% of the external debt. That will solve all the problems. So they do that and that, what happens then? That’s the bottom.

That’s the bottom gold price in US dollars. Yeah. Because they will defend that.

And they don’t even need to defend it because it will be pandemonium. It will be crazy. Everybody, me and you will be the most popular people on YouTube, okay? Probably.

Too boring guys, right? Like, so everybody will be in gold and silver at that point. And then, like, you know, after the revalidation, they’ll probably take it up to 10,000. Yeah.

I’m just, like, again, this is all wild speculation. I’m happy with that. Sure.

My point is it’ll overshoot, right? It’ll overshoot, something happens, and then it’ll dump back to, I don’t know, six, 7,000. It always does, right? It’ll always overshoot and then reverse to me, right? And then loads of people are gonna buy it at 10,000. Then in 15 years, 10 years’ time, they say, oh, it’s really bad to buy gold, even though they could have bought it at, like, 2,000 or 3,000 right now.

Exactly. So, like, you know, I think that’s the playbook, really. Which is, like, you know, right now, nobody believes it.

So it’s gonna grind up, and then they release the information either officially or unofficially. Then it’s gonna shoot up, and then people probably think, oh, if once they, you know how the common wisdom on, use wisdom sparingly, in quotation marks. In Wall Street, it’s buy the rumor, sell the news, right? So a lot of people are gonna sell when the revaluation happens.

But no, not with gold. Revaluation happens, the thing goes up continuously, right? Because that’s the bottom, right? Buy the rumor, buy the news, buy the facts, right? When it happens. And then this thing, like, you know, it’s gonna shoot up, and then, like you said, Mario, by the time they jump in, it’s probably 9,000.

You’ve got one down, and then it just, it just, you know, corrects itself. I guess one thing to say, though, is that even if none of this happened, I would still hold my gold, because I still think they would still, governments and central banks around the world are gonna keep inflating. So, yeah, we’re, like, laughing here and talking about something that hasn’t happened.

And it might not happen, but I still think gold and silver are good monetary insurance. Before I leave, Mario, I just wanna say that you made a very good point about the external debt of the U.S. So if we look at it from a external U.S. debt point of view, I think 6,000 U.S. dollars per troy ounce of physical gold that the U.S. Treasury holds might actually solve a lot of the problems. So that’s actually, you know, I mean, you’re the first guy who reminded me of that.

I think that will probably be a realistic target. Eric, I hope you have a great weekend in Hong Kong, and I’ll talk to you later. Thank you, Mario.

You too. Thank you.