GOLD BLOWS PAST $3,100 – THE MARKET IS SOUNDING THE ALARM ON U.S. DEBT
I’ve been around a long time. Grew up watching my dad come home with calloused hands and sore knees after working 12-hour shifts. We didn't have much, but what we had, we protected. That’s the mindset folks need today. Because what we’re witnessing in the gold market right now? It's not just a milestone. It's a red flag the size of Texas.
Gold has now officially passed $3,100 per ounce. That’s right—thirty-one hundred bucks. Just for reference, it was under $1,200 in 2013. And in 2000? About $265. That’s a tenfold increase in 25 years. While most Americans have been told to dump their money into 401(k)s stuffed with paper promises, gold has been quietly—and consistently—proving it's the real deal.
Why Is Gold Soaring?
Now, you might be thinking: “If inflation is cooling off, why is gold still rising?” Great question. The talking heads love to pitch gold as an inflation hedge, but that’s only part of the story.
What really drives gold? Debt. Massive, unsustainable, government debt.
See, gold doesn’t trust politicians—and neither should you. Every time Washington fires up the money printers to patch up its bad decisions, gold ticks higher. And right now, that printer's running like it’s 2008 on steroids.
Remember when Obama went on a spending spree during his first term? Gold soared. Then they pretended to “tighten the belt,” deficits dropped, and gold chilled for a bit. But today, we’re back to the races—with deficits exploding again, and gold right along with it.
Debt Monetization: The Silent Killer
Here’s the dirty little secret they don’t want you to know: the government can’t pay its bills without cheating. When the debt gets too big, and nobody wants to buy U.S. bonds anymore, they’ll resort to something called yield curve control. Sounds fancy, but all it means is they’ll start buying their own debt—with freshly printed dollars.
That’s like paying your mortgage with Monopoly money.
This kind of nonsense leads to monetary debasement, higher inflation, and—surprise, surprise—higher gold prices. It’s happened before. It’s happening now.
Interest on the national debt has jumped from $300 billion in 2018 to $1.1 trillion today. That’s not just a line item on a spreadsheet. That’s a fiscal time bomb. And if interest rates rise even a little more, we’re looking at default territory unless they step in with unlimited money printing.
You know what that means: Your dollars lose value, and your savings get nuked. But gold? Gold just keeps shining.
The DOGE and the Illusion of Fiscal Discipline
Now, we’ve got this new Department of Government Efficiency (DOGE) barking about cutting waste, fixing entitlements, trimming the fat. Sounds great. But gold’s rise tells us the markets don’t believe a word of it.
You can’t fix a debt crisis with a few bureaucrats and some whiteboard brainstorming sessions. Especially when D.C. is addicted to spending like a gambler at a Vegas buffet. Even with talk of slashing $1 trillion in waste, gold is still moving up. That tells you everything you need to know.
The reality? Investors are preparing for the possibility that DOGE fails, and we’re left holding the bag—again.
The Rest of the World Isn’t Waiting
While America fumbles, foreign central banks are stacking gold like it's going out of style. Especially after the U.S. froze Russian reserves, countries like China realized cash in a Western bank can be seized. Gold in your vault? That’s untouchable.
Since the war in Ukraine kicked off, we've seen a massive move toward gold by countries looking to protect themselves from U.S. sanctions and currency risk. That kind of demand drives prices higher—and it’s not slowing down.
The Truth About America’s Gold
Yeah, we supposedly have 4,582 tons of gold in Fort Knox. That’s worth about $800 billion today. But let me put that in perspective: it wouldn't even cover two months of government spending.
There’s about $22 trillion in U.S. dollars floating around. If we ever wanted to return to a gold-backed system (which is unlikely under current leadership), we’d either need to find a mountain of gold, or revalue it to the moon. Which might just happen anyway, the way things are going.
The Bottom Line
Gold rises when governments lie, cheat, and overspend. That’s why gold has always had a target on its back. In 1933, they confiscated it. In 1971, Nixon cut the dollar’s tie to it entirely. Why? Because gold is the escape hatch—it’s the one way we, the people, can protect ourselves from the fiscal dumpster fire coming out of Washington.
So when I see gold blow past $3,100 while politicians promise fiscal restraint? I don’t see strength. I see fear. And I see opportunity—for folks smart enough to act.
Here’s What You Need to Do:
If you haven’t already, get your hands on Bill Brocius’ free eBook, “Seven Steps to Protect Yourself from Bank Failure.”It’s your blueprint to stay ahead of the chaos.
👉 Download it here with this link
And while you’re at it, don’t wait on physical gold and silver. They’re your lifeline. Subscribe to Dedollarize’s gold and silver services and stay in the loop.
Stay alert. Stay informed. And above all—stay protected.
—Frank
