There will be signs and wonders.
The Fed just published a paper on the brief history of central bank gold revaluations.
From Bessent in February to reports like this...don't say you didn't see it coming.
h/t to @J0SH_SPEED and @KingKong9888 https://t.co/CtVjPmQv5l

— TF Metals Report (@TFMetals) August 6, 2025

This couldn't be more obvious than the nose on your face...... They (Treasury and FED) are going to bump the "official" price ($42.22/oz) of gold to cover (partially or fully) the debt.


To what level who knows?????

Quote:

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August 01, 2025

Official Reserve Revaluations: The International Experience

With public debt at high levels, some governments have begun to explore financing additional expenditures without raising taxes while also not increasing public debt outstanding. One possibility is using proceeds from valuation gains on gold reserves, as has been floated in the U.S. and Belgium recently. For the U.S., this would involve revaluing the government's 261.5 million troy ounces in gold reservesthe largest gold reserves globally from a statutory price of $42.22 per troy ounce to current market prices, which stand around $3300 per troy ounce.

Central banks have used revaluation proceeds to offset operating losses and maintain net profits or minimize reported net losses. In Italy, revaluation proceeds covered a one-off loss for the conversion of a specific bond the Banca d'Italia owned. In Curacao and Saint Martin, the proceeds covered losses generated by a fall in interest income from holding relatively lower-yielding securities than previous years and realized valuation losses as the central bank rebalanced its portfolio. The use of revaluation proceeds temporarily boosted profits for both central banks, but, in Curacao and Saint Martin, the use was paired with other measures to genera additional income on a sustained basis.

Central governments have drawn on revaluation proceeds to retire existing debts, often in exceptional fiscal circumstances. While reducing the debt stock using revaluation proceeds improves the fiscal situation at the margin, drawing on revaluation proceeds may not address larger structural challenges. For example, Lebanon's debt-to-GDP ratio continued to increase even after revaluation proceeds were used to retire some existing debts.....

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if bitcoin is worth 115-120k what should an ounce of gold be valued at? it's around 3450 right now and that's with the us govt pegging it at 42 bucks. if they changed that evaluation what would it be worth. good question.

Market price ($3400) doesn't really open any space on the books.

George Gammon does a pretty solid job of explaining what a $20,000/oz price would do. Basically, $20K opens up $5 Trillion.



However he doesn't explain what that would do to markets if Treasury does it.....

Now they just gotta pinky promise they have as much gold as they say they do.

pics of what's inside fort knox or gtfo

Even if they don't have the refined gold sitting in a vault, they'll come up with an explanation that there are millions of tons in the ground in Nevada, California and Alaska (which isn't a lie).

Krombopulos Michael said:

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Even if they don't have the refined gold sitting in a vault, they'll come up with an explanation that there are millions of tons in the ground in Nevada, California and Alaska (which isn't a lie).

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Well heck, under that same precept, I am going to start valuing my land according to the market value of all extractable minerals below surface whether there is a historical precedent of cash flow or not. That will make the bank's head spin.

I recently found the YouTube video of a guy who buys up old jewelry and refines it into pure gold and silver as a hobby. In one video he goes through and produces a gold bar that was worth $75,000 at the time, about four years ago.

In the comments, people point out that the gold is now worth almost twice as much. He tells them no, the gold is still gold. It's the paper money that is worth half as much.

Krombopulos Michael said:

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Market price ($3400) doesn't really open any space on the books.

George Gammon does a pretty solid job of explaining what a $20,000/oz price would do. Basically, $20K opens up $5 Trillion.



However he doesn't explain what that would do to markets if Treasury does it.....

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If this happens as he explains, the very second the $5T is done being bought, gold price will immediately tank back to prior market value, and possibly lower, leaving the FED with a $5T liability and no assets to ever cover it. Wipeout.

Not really. The floor is $20K when it's "officially" set and bought by the US Govt.

Banks and those holding gold aren't going to allow the price go lower. In a digital market they can set the price and maintain it there with derivatives and electronic trading. (just watch the silver market)

Granted there will be some firms who are short the day before the revaluation that are going to go BK, but those losses can be contained.

The markets would be rocked for awhile but overall it's probably not a bad idea.

I'm having a hard time understanding how this would fix anything. Even if we re-evaluated the price, we still have the debt. So you would have to sell all of that gold off to clear the debt, right?

Krombopulos Michael said:

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Not really. The floor is $20K when it's "officially" set and bought by the US Govt.

Banks and those holding gold aren't going to allow the price go lower. In a digital market they can set the price and maintain it there with derivatives and electronic trading. (just watch the silver market)

Granted there will be some firms who are short the day before the revaluation that are going to go BK, but those losses can be contained.

The markets would be rocked for awhile but overall it's probably not a bad idea.

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Nonsense. Banks couldn't control but a fraction of the supply. There would be no BUYERS beyond the gov at $20k. Because there would be no market above that. Price would immediately fall back to mkt value as world central banks, foreign holders, and private holders rush to sell. There would be FAR more sellers than buyers after the gov is done and price would eventually drop back to prior market and possibly lower.

This would be global coordinated effort to keep the price inflated not a true open market.......Essentially revaluation is an emergency measure. Central banks aren't dumping the day after revaluation to buy Bitcoin.

Any central bank/govt/commercial bank holding gold (which is just about all of them) would benefit from a higher price. Debt to GDPs around the world would fall dramatically. It's complete financial engineering but what isn't these days.....


The little guys might sell a portion of their stacks to take profit (I know I would) but for the most part Gold would continue to be HELD in vaults as collateral/wealth.

Krombopulos Michael said:

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Even if they don't have the refined gold sitting in a vault, they'll come up with an explanation that there are millions of tons in the ground in Nevada, California and Alaska (which isn't a lie).

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The Hail Mary play I believe will be bringing some astoundingly valuable asteroid to the moon, where after impact it will be mined, if it doesn't just kill us all in the process.

Sims said:

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Now they just gotta pinky promise they have as much gold as they say they do.

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Some smart people say we have MORE than advertised. Someone is going to be WILDLY surprised on July 4, 2026 -- I just don't know what side.

So I buy $Silver.

Again for those of you who haven't been following along...Gold revaluation is written in the Bitcoin Reserve Act bill that is currently working through Congress.
It's all right here: https://t.co/rcAzOm27pu pic.twitter.com/d5p3rIivqD

— TF Metals Report (@TFMetals) August 6, 2025

Krombopulos Michael said:

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This would be global coordinated effort to keep the price inflated not a true open market.......Essentially revaluation is an emergency measure. Central banks aren't dumping the day after revaluation to buy Bitcoin.

Any central bank/govt/commercial bank holding gold (which is just about all of them) would benefit from a higher price. Debt to GDPs around the world would fall dramatically. It's complete financial engineering but what isn't these days.....


The little guys might sell a portion of their stacks to take profit (I know I would) but for the most part Gold would continue to be HELD in vaults as collateral/wealth.

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Yes, they would all just hold indefinitely with no bid. Sorry, the world doesn't work that way. You think Russia and China would let gold go to $20k an ounce and not REALIZE that gain, much less, avoid taking advantage of the 6x artificial arbitrage and short the **** out of it?

Where would this magic world hand holding party get the money to KEEP the bid at $20k?

Hell, you guys talk about the conspiracy of banks and central governments keeping price down. Now they flip and all just conspire to keep it up? No. Most would realize their gains, trapping the FED with a $5T liability around its neck while they got rich in the process.

Quote:

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Where would this magic world hand holding party get the money to KEEP the bid at $20k?

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CME and a bunch of servers. They do it all the time in the silver market.......

Krombopulos Michael said:

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Quote:

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Where would this magic world hand holding party get the money to KEEP the bid at $20k?

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CME and a bunch of servers. They do it all the time in the silver market.......

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Virtu Financial, anyone?

javajaws said:

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I'm having a hard time understanding how this would fix anything. Even if we re-evaluated the price, we still have the debt. So you would have to sell all of that gold off to clear the debt, right?

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Having trouble understanding this as well. Someone explain it like I'm a little older than 5

So they propose to increase the book value of gold, a paper unrealized gain, to some higher price. And then essentially borrow against that market value to pay off debt, creating new debt at more favorable terms?

How does this avoid double counting the reserves? Why couldn't we just sell some portion of the reserves at market value and use those proceeds? It's all made up anyway, why do we need gold reserves?

JobSecurity said:

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javajaws said:

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I'm having a hard time understanding how this would fix anything. Even if we re-evaluated the price, we still have the debt. So you would have to sell all of that gold off to clear the debt, right?

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Having trouble understanding this as well. Someone explain it like I'm a little older than 5

So they propose to increase the book value of gold, a paper unrealized gain, to some higher price. And then essentially borrow against that market value to pay off debt, creating new debt at more favorable terms?

How does this avoid double counting the reserves? Why couldn't we just sell some portion of the reserves at market value and use those proceeds? It's all made up anyway, why do we need gold reserves?

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If they were stupid enough to do this, it would be yet another can kick of the inevitable. But as I've explained, the situation would turn sour quickly as it would be a new $5T liability for an already underwater FED once gold price collapsed following this.

jagvocate said:

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Sims said:

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Now they just gotta pinky promise they have as much gold as they say they do.

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Some smart people say we have MORE than advertised. Someone is going to be WILDLY surprised on July 4, 2026 -- I just don't know what side.

So I buy $Silver.

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Reference to Judy Shelton?

Marked to market gold is what the euro is built on. That's to say, gold floats freely against their currency as a stand alone store of value. When the dollar reserve collapses, what are other central banks reserves going to balance trade with?

Central banks are around 18% of all gold holdings, investments about the same, and jewelry is about 50%. I think the thesis is who controls the price - the entity that can buy by the tonne or the ounce? How liquid is jewelry vs bars? Central banks have increased their annual purchases and make up 1/3 of all new gold mined. If gold is revalued to wipe balance sheets clean the world over, it's in their best interest to have the asset be high.

If I set my trading price at $20k/oz, as my debt load is reduced the price of gold is reduced because I'm strengthening my dollar. If gold is a free floating asset, why wouldn't China trade their debt for gold? How did the gold window being closed, volker and Saudi's arrange for the petro dollar in response?

The melt up of price is controlled, trying to draw gold out, in my worldview. Where it was, gold would never leave the vaults.

So what does this mean for gold bullion If I were to buy a 1 oz gold coin, now with an absurdly low face value of "50 dollars", would it now be labelled "3000 dollars" (or whatever)? And could I spend it as such (e.g. to make a down payment on a new car), even if the market price of gold somehow fell back below that level?

Would it surprise anyone if the plan was to artificially inflate the price so that the U.S. could buy all of the world's gold reserves? We're the only nation that could afford something like that. It would prop up the dollar and probably eliminate for the foreseeable future any notion that some other currency could replace it as the global reserve.

I'm sure I'm missing something but that sounds exactly like the thinking of a group of madmen with an unlimited supply of dollars.

BonfireNerd04 said:

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So what does this mean for gold bullion If I were to buy a 1 oz gold coin, now with an absurdly low face value of "50 dollars", would it now be labelled "3000 dollars" (or whatever)? And could I spend it as such (e.g. to make a down payment on a new car), even if the market price of gold somehow fell back below that level?

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Gold is a good reservoir of wealth but not very liquid. In terms of physical gold, you have to buy it, store it, then find a way to cash it out when you want to buy something. Conversely you could invest in a gold-based ETF.

I think someone on this board made a good point. You don't put money into gold as an investment, it's insurance. I think over time the stock markets outperform gold, even at today's crazy prices.

Explain this like I'm 5

It's all debits and credits...right?

Some small-time retail gold hodlers will sell after the revaluation and become fiat wealthy.

If the US raises the price of gold on their books, every central bank in the world will do the same thing...coordinated. Government and central banks will gain a little breathing room and kick the fiat can down the road a little longer. It won't take long to be right back in the same situation. In my eyes, raising the price of gold is just accounting wizardry to obscure a dollar default.

It's stuff like this where the term "social construct" gets legs. That term is almost solely used by leftists to describe a reality they simply don't agree with.

However, the accounting gimmickry around everything with our money system and Keynesian philosophy is legit social construct smoke and mirrors.

And since perception can largely be reality when it comes to this topic maybe the irony is that I'm just denying reality here.

ts5641 said:

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Explain this like I'm 5

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Gold price has been held within a price range since the early 1970s using computer trading. Official US book price of gold is $42.22/oz.

Repricing it to $20K allows US debt to GDP to drop to a reasonable level (from ~120% to 70%) so we can refinance the short term debt without paying out the ass.

The infrastructure mechanisms to do this are already on the books.

There will be market issues for doing this but it's largely an emergency measure, not something that will be done in normal course of business.

Don't bet the farm on this happening tomorrow.

Watch the Gammon video. He's smart.

Gnome Sayin said:

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pics of what's inside fort knox or gtfo

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We could get maga to demand this before they'll demand the Epstien info.

On the topic, I just used a Sharpie to change the balance due on my mortgage statement. Instant revaluation, looks like she's paid off!

And if that fails, I'm switching to ETFanBucks. I declare them worth $100,000 each.

torrid said:

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BonfireNerd04 said:

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So what does this mean for gold bullion If I were to buy a 1 oz gold coin, now with an absurdly low face value of "50 dollars", would it now be labelled "3000 dollars" (or whatever)? And could I spend it as such (e.g. to make a down payment on a new car), even if the market price of gold somehow fell back below that level?

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Gold is a good reservoir of wealth but not very liquid. In terms of physical gold, you have to buy it, store it, then find a way to cash it out when you want to buy something. Conversely you could invest in a gold-based ETF.

I think someone on this board made a good point. You don't put money into gold as an investment, it's insurance. I think over time the stock markets outperform gold, even at today's crazy prices.

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SPX is down against gold since 2000.

TTUArmy said:

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It's all debits and credits...right?

Some small-time retail gold hodlers will sell after the revaluation and become fiat wealthy.

If the US raises the price of gold on their books, every central bank in the world will do the same thing...coordinated. Government and central banks will gain a little breathing room and kick the fiat can down the road a little longer. It won't take long to be right back in the same situation. In my eyes, raising the price of gold is just accounting wizardry to obscure a dollar default.

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People that don't understand the implications of an entire world underwater in debt pivoting to taking on new debt and levered positions against the only asset that can't be corrupted by MMT.

Gold's value is gold's value. It's not artificially depressed. It can't be "revalued" with made up numbers. Doing so at such a high multiple above market value would be the equivalent of The Bank of England forcing all holders of gold to sell to BOE so they alone could own the majority of the market and leverage it through bank notes to expand the money supply. Didn't work out hundreds of years ago. In fact, it was devastating. Won't work this time.

Krombopulos Michael said:

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ts5641 said:

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Explain this like I'm 5

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Gold price has been held within a price range since the early 1970s using computer trading. Official US book price of gold is $42.22/oz.

Repricing it to $20K allows US debt to GDP to drop to a reasonable level (from ~120% to 70%) so we can refinance the short term debt without paying out the ass.

The infrastructure mechanisms to do this are already on the books.

There will be market issues for doing this but it's largely an emergency measure, not something that will be done in normal course of business.

Don't bet the farm on this happening tomorrow.

Watch the Gammon video. He's smart.

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Again, $20k has nothing to do with the value of gold. That's an arbitrary number thrown out because it's the only value that could make a dent in our debt worth noticing. In reality, the market price would be much lower. And when gold reprices to ACTUAL market value following this MMT catastrophe, we now have $5T of debt on the books with nothing available in the world to back it up, as we just leveraged a fake value for the only asset we haven't yet leveraged.. merely to kick the can down the road.

Sims said:

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Well heck, under that same precept, I am going to start valuing my land according to the market value of all extractable minerals below surface whether there is a historical precedent of cash flow or not. That will make the bank's head spin.

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And send your real estate taxes to the moon. Gov always wins.