Gold’s Revaluation Is No Longer a Question of If, But When

The gold in Fort Knox and West Point just passed the $1 trillion valuation mark, courtesy of a 45% rise in price this year. But on the U.S. government’s books? It’s still listed at the antiquated 1973 price of $42.22/oz. That accounting fiction has now become a multi-hundred-billion-dollar lie—and a political tool hiding in plain sight. What’s being discussed today—marking gold to market—would be the modern-day equivalent of Roosevelt’s theft and Nixon’s betrayal: a quiet declaration that the fiat dollar has reached its endgame. Historical Parallels: This Has All Happened Before Revaluing gold isn't some fringe conspiracy. It's precedent. In 1933, Franklin D. Roosevelt signed Executive Order 6102, confiscating Americans' gold under the guise of economic recovery. Then in 1934, he revalued gold from $20.67 to $35 an ounce—a 69% devaluation of the dollar overnight. The government didn't just cheat the gold holders—they rewrote the rules after taking their metal. Fast forward to 1971: Nixon slams shut the gold window. Bretton Woods dies. Fiat currencies run wild. Gold soars to $850 in 1980, and ever since, central banks have tried to keep it in a box. But gold doesn’t stay buried forever. And when it resurfaces, it tends to burn the fingers of every central banker who tried to suppress it. Why Revaluation Looks More Likely Than Ever Here’s what’s changed: A Gold Hoard Worth Over $1 Trillion: The Treasury sits on over 261 million ounces of gold. At $42/oz, that’s $11 billion. At $3,900/oz (current market price)? $1.02 trillion. That’s a $990 billion accounting gimmick waiting to be pulled. Ballooning U.S. Debt: $39 trillion and climbing. Revaluation allows the Treasury to inject nearly $1 trillion in phantom "gains" without selling bonds, without raising taxes, and without passing legislation. It’s fiscal alchemy—and they know it. The Trump Variable: Let’s not kid ourselves. If Trump returns to the Oval Office, we can expect fiscal norms to be ignored. The man isn’t going to blink at marking gold to market if it means avoiding a debt ceiling crisis or buying political capital. Desperation at the Fed and Treasury: Real QE is politically toxic. But a gold revaluation? It’s QE without the optics. No bond purchases. No rate cuts. Just a spreadsheet adjustment that funnels cash straight into the Treasury General Account (TGA), bypassing every traditional check and balance. What Happens Next? You Can’t Print Gold A revaluation would trigger an economic chain reaction: Gold could skyrocket: Marking the Treasury's hoard to market implicitly acknowledges gold's real value—and its supremacy over fiat. That could easily push prices north of $5,000/oz. If revaluation becomes policy? $10,000 isn’t a fantasy; it’s math. Dollar depreciation: If gold is revalued, the dollar is devalued—full stop. And while it may help exports, it slams savings, wages, and purchasing power. The return of hard assets: Bitcoin, silver, land, energy—anything with scarcity—would rise. Fiat would sink. Investors would flee the dollar like it’s a burning ship, and gold would be the last lifeboat. Sovereign risk and systemic distrust: Other nations would take note. If the U.S. can quietly reprice gold to pad its books, why shouldn’t China, Russia, or even Germany do the same? The entire system of trust—central banks, fiat reserves, foreign exchange holdings—gets put on trial. What the Establishment Won’t Tell You Some talking heads will spin this as a mere accounting tweak. They’ll argue: “It’s just an internal shift. It won’t affect inflation or real economic activity.” That’s fiction. If the government conjures $1 trillion without issuing bonds or raising taxes, that’s inflationary—period. It means more money chasing the same goods. And it weakens the already eroding line between the Treasury and the Fed. Others say: “Marking gold to market could shake investor confidence.” Good. It should. Because the current system is a lie held together by duct tape, IOUs, and narrative control. For Americans and Dollar Holders: Get Ready If you’re holding dollars, you’re holding a melting ice cube. If you’re holding Treasuries, you’re betting on an addict kicking the debt habit. But if you’re holding gold? You’re holding the only asset the U.S. Treasury can’t print and can’t replace. Gold isn’t just a hedge. It’s a mirror—and right now it’s reflecting a government that's out of money, out of credibility, and rapidly running out of time. Revaluation is coming. Whether it's done in secret or announced with fanfare, the outcome is the same: fiat debasement, gold ascendance, and a tectonic shift in the global monetary regime. Conclusion: Don’t Say You Weren’t Warned This isn’t just about balance sheets—it’s about a sovereign nation trying to maintain the illusion of solvency. The American empire, like every empire before it, is using gold not as money—but as lifeboat collateral. And that lifeboat is about to be launched. When gold is revalued, everything else will be repriced in its shadow. The smart money isn’t watching what Bessent says—it’s watching what the Treasury doesn’t say. And what they’re not saying… is everything.

Gold’s Revaluation Is No Longer a Question of If, But When

Bill Brocius Sep 30

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