Is the U.S. About to Revalue Gold? (Uncut) 02-12-2025

Is the U.S. About to Revalue Gold? What It Means for You!

Something big is happening in the world of gold. The US Treasury and Federal Reserve may be gearing up for a financial move that could change everything, monetizing America’s gold reserves. What does that mean? Could the US seriously be about to mobilize the gold of Fort Knox? And what happens if they push the price of gold to $10,000 or more? Let’s find out.

So first up, what is gold monetization? Well, it’s an idea that has repeatedly surfaced in recent years, but it’s now gaining fresh attention due to mounting economic challenges and increasing gold prices. In simple terms, it means turning gold, an asset traditionally held in reserve, into an active financial instrument that can be used to fund government operations, settle debt, or stabilize the economy. Now, US Treasury Secretary Scott Besant has recently floated the idea of monetizing the asset side of the US balance sheet.

And what this means is leveraging existing government-owned assets, most notably the supposed 8,100 metric tons of US gold reserves, to inject liquidity into the economy. So how could this be achieved? Well, there are several possible methods. One approach is revaluing US gold holdings, a move that would raise the book value of gold from its outdated official price of $42 per ounce, yes, it is still valued at that price despite trading at over $2,900 per ounce, to reflect its true market value.

Now, such an adjustment would instantly unlock trillions of dollars in paper wealth, significantly strengthening the government’s financial position and creating new fiscal options. Now, another method is collateralizing gold for new financial instruments. This could involve using gold as security for issuing government-backed bonds or even creating innovative financial vehicles that integrate that gold directly into the monetary system.

By leveraging gold in this way, the US could introduce alternative funding sources without resorting to additional money printing or increasing its reliance on traditional debt markets. And an even more dramatic move would be tying that gold to future monetary policy, where gold serves as stabilizing force for the US currency. This wouldn’t necessarily mean a full return to the gold standard, but rather a hybrid system where gold backs a portion of the US dollar, helping to restore confidence in its value while still allowing for some level of fiat flexibility.

This isn’t just theoretical. There are historical precedents here, from Roosevelt in 1933 to Nixon in 1971. They both show that there are dramatic shifts in gold’s monetary role, and they’ve occurred before.

But why is Scott Besant up for it happening now? Why does the US want to monetize gold? Well, the push to monetize gold isn’t happening in a vacuum. It’s a response to some of the most pressing financial economic challenges that the world has ever faced. The most obvious factor, the US’s national debt.

With an on-balance sheet debt of over $36 trillion and rising, US debt has reached levels where repayment just seems increasingly implausible under the current system. And this is just the on-balance sheet debt, let alone the unfunded future liabilities, which are set to be around $80 trillion in the government years. And this is just the on-balance sheet debt, let alone the unfunded future liabilities, which are set to be around $80 trillion in the coming years.

Government spending outpaces revenue, and traditional solutions, raising taxes or cutting spending, are just politically unfeasible, unless you’re Elon Musk and believe Doge will probably just get the job done. And a gold revaluation, however, could provide an alternative route, allowing the US to boost the value of its reserves and reduce debt burdens in one calculated move. But debt alone isn’t the only concern.

The erosion of trust in currency is just a major issue. The US dollar’s purchasing power has fallen by at least 97% in the last 100 years, and its status as the world’s reserve currency is being challenged by BRICS nations and central bank digital currencies in a concerted effort to wean the world away from the US dollar domination, the Enbridge project being the most exciting effort here. And gold, universally recognized and finite, could act as a counterweight to this trend, reinforcing the dollar’s credibility by giving it a tangible asset base.

Inflation and financial instability add another layer of urgency. The recent banking crises, high inflation and soaring interest payments on the government debt all point to an unsustainable trajectory. In this environment, gold is seen as a safe haven asset, and its monetization could be framed as a stabilizing measure rather than a desperate act.

The pieces are really falling into place for a potential gold monetization event. But what happens if the US actually takes these steps? If the US were to officially revalue gold, the effects would be immediate and far-reaching. The impact would depend on the degree of revaluation.

If you were to revalue gold on the US balance sheet at just above the current spot price, let’s say $2,900 an ounce, then this might just be a pretty smart move. It would inject an estimated $800 billion into the treasury general account via a repurchase agreement. And this would reduce the need to issue as many new treasury bonds and potentially ease short-term funding pressures for the US government.

And while this would improve the US treasury’s balance sheet, it wouldn’t be a game-changing move. However, it would be a symbolic shift, signaling that gold is once again being recognized as an important financial asset by the US government. The markets would likely see this as a measured, non-disruptive step.

Gold-backed instruments could be introduced without upending the fiat system, and inflation would likely remain under control. Now, some investors might view this as a precursor to a more aggressive revaluation, leading to an uptick in demand for physical gold. And you’ve got to ask, why would Trump and Besant stop there? Why would they just keep things conservative? After all, that’s not exactly Trump’s style, is it? So let’s consider the scenarios where gold is raised to $10,000, $50,000, or even $140,000 per ounce.

So if we saw, let’s say, a controlled revaluation, if the US opts for, let’s say, a conservative measured approach, and it could be revalued somewhere between $5,000 and $10,000 per ounce, well, this scenario would be designed to gradually stabilize the US balance sheet, giving the treasury a stronger financial position while preventing major economic shocks. In all likelihood, the dollar would gain some confidence due to this tangible backing, and inflation might be moderated rather than exacerbated. Central banks worldwide would likely have time to adjust, making this a more manageable shift in the financial system.

But in a more aggressive move that would see gold being revalued to, say, $20,000 or up to $50,000 per ounce, this would drastically increase the value of those US reserves. This scenario could see gold being used as a key financial asset to absorb US debt, significantly reducing the treasury’s fiscal burdens. However, such a dramatic shift would send shockwaves through fiat currency markets, with many central banks scrambling to increase their own gold reserves to avoid devaluation.

Inflation would rise significantly, but those holding gold and hard assets would experience enormous financial gains. This would mark a turning point in global monetary policy, forcing many economies to rethink their dependence on fiat systems. Let’s go crazy for a minute.

Let’s look at an extreme event scenario. If the US were to drastically revalue their gold to an extreme level, above $100,000 per ounce, it would essentially trigger a total reset of the global financial system. The fiat money system as we know it would collapse overnight, and a return to a gold-backed economy would just become inevitable.

While the US government would technically be in an incredibly strong financial position, hyperinflation would ravage global markets, wiping out savings, devaluing currencies, and leading to economic chaos for nations with little gold. And those who do not hold gold or other hard assets would no doubt face extreme financial hardship. The world would be forced into a new monetary paradigm, one dictated not by fiat systems, but by tangible hard money assets.

As you can see, this isn’t just about America’s balance sheet. A major gold revaluation would shake the foundations of the global financial system. Fiat currencies, which derive their value from trust rather than tangible backing, could face a crisis of confidence.

Investors and governments worldwide might rush to acquire more gold, driving up prices and creating chaos in markets that rely on paper-based financial instruments. A gold revaluation would also fuel inflation in unexpected ways. While it could provide short-term debt relief, it might simultaneously devalue cash holdings, making everyday goods and services more expensive.

And additionally, if investors believe the move signals the beginning of a shift toward a gold-backed system, there could be a flight from fiat currencies, exacerbating economic uncertainty. Ultimately, this US gold revaluation would not happen in a vacuum. It would trigger a chain reaction, forcing governments, central banks, and financial institutions worldwide to reassess their policies and adapt to the monetary landscape.

And maybe that’s what they want. For years, countries like China and Russia have been aggressively accumulating gold, seemingly in preparation for a major monetary shift. If the US revalues gold, the nations could see their holdings appreciate dramatically, potentially giving them a greater role in shaping the new global financial order.

And at the same time, nations with low gold reserves, many in the developing world, could face severe disadvantages as their currencies depreciate relative to gold-backed wealth. A move toward gold monetization could also accelerate the de-dollarization trend. Countries seeking to escape dependence from the US dollar might turn to gold-backed trade agreements or seek alternative currency arrangements, further diminishing this American financial influence.

But of course, not everyone would lose out. Investors and savers who hold physical gold and silver would likely see the greatest financial gains. Those who have positioned themselves ahead of this shift really could reap massive rewards as fiat wealth declines in relative value while gold-backed assets surge.

Now, of course, this wouldn’t be an easy move for the US government. There are major legal and political barriers to consider, each of which could really determine whether monetizing gold succeeds or triggers economic instability. First of all, well, who actually controls the gold? Officially, the US Treasury holds the nation’s gold reserves, but the Federal Reserve is the entity that dictates monetary policy.

If the government wants to use its gold reserves to support debt issuance or back a financial system, it would require a major policy coordination between the Treasury and the Fed. This is an uneasy alliance at best. But this might be a bit of a non-issue, because guess what? The Fed might finally be audited anyway, and by none other than Dr. Ron Paul, the very man who wants to end the Fed.

Then there’s the issue of congressional approval. Any significant shift in how the government values or uses its gold reserves would likely require legislative action. Given the partisan gridlock in Washington, such a move could become a political battleground, with some lawmakers supporting it as a way to stabilize the economy, while others might resist, arguing that it undermines the fiat system or benefits gold holders at the expense of the broader public.

But then again, does Trump really care about congressional approval? Is this just going to be yet another one of his executive orders? There’s also the question of how global markets would react. If the US revalues gold significantly, it really could upend the international financial system, particularly if other countries respond by adjusting their own gold reserves or even shifting away from the US dollar. Nations that don’t hold significant gold reserves may find themselves at an economic disadvantage, leading to tensions with trade partners and economic instability in emerging markets, not just in emerging markets.

In fact, if I was the UK or Canada right now, I would be seriously worried about where this would place me in the global pecking order. After all, they both sold most of their gold, and I would be especially worried if I was Canada. And talk about the 51st state.

Perhaps the most critical question is trust in the system. A shift back to a gold-backed currency or a financial framework could be seen as a radical departure from modern economic policy. It would force governments, financial institutions, and investors to rethink how money functions and could trigger unintended consequences, such as this rapid de-dollarization or a sudden collapse in the confidence of paper assets.

Would the US risk upsetting global financial markets with this kind of move? Under any other president, we would say, no, nothing to worry about here, just a bunch of peacocking. This is all for show. But this is Trump, and this is Musk, and this is a bunch of highly successful billionaires ready to get it done.

They are not worried about upsetting anyone. But why don’t you tell us what you think? Hit subscribe, comment below, and let’s just get the conversation going.