Posted on 07/12/2025 12:05:26 PM PDT by delta7
Lately there has been a big increase in speculation about an official revaluation of gold.
At YouTube this week Rebel Capitalist's George Gammon seemed surprised by the possibility as he called attention to financial letter writer Luke Gromen's recent report that the May edition of the Federal Reserve's Financial Accounting Manual for Federal Reserve Banks describes a mechanism by which the U.S. Treasury Department and the Fed can revalue the U.S. gold reserve:
https://www.youtube.com/live/oDNhrvbZV34
While this was news to Gammon, revaluation is an old story with gold. Gromen actually disclosed the mechanism in the Fed manual last year --
https://www.gata.org/node/23332
-- and had speculated about gold revaluation in 2023:
https://www.gata.org/node/22828
... Dispatch continues below ...
That the U.S. government has the power to revalue gold shouldn't surprise anyone in the monetary metals sector or anyone somewhat familiar with U.S. history. Of course President Franklin D. Roosevelt famously revalued gold in 1934 after attempting to confiscate gold held by the public. As Mike Maharrey of Money Metals Exchange explained last year, the confiscation and revaluation constituted a plan to increase the U.S. money supply during the catastrophic deflation of what became the Great Depression:
https://www.moneymetals.com/news/2024/05/31/did-fdr-really-confiscate-everybodys-gold-003226
In February gold researcher Stuart Englert described other gold revaluations in U.S. history:
https://www.gata.org/node/23672
Gold revaluation has been a frequent topic in GATA dispatches over the years.
In 2007 GATA called attention to the study written a year earlier by R. Peter W. Millar of Valu-Trac Investment Research in Scotland, who maintained that occasional gold revaluations are necessary in debt-based fiat money systems to prevent catastrophic debt deflations:
https://www.gata.org/node/4843
In 2008 former Fed Governor Lyle Gramley, speaking on Business News Network in Canada, volunteered that the Fed's financial position could be made much stronger with an upward revaluation of the U.S. Treasury gold certificates it held:
https://www.gata.org/node/6989
In 2012 the U.S. economists Paul Brodsky and Lee Quaintance hypothesized that major central banks were already working toward gold revaluation, holding the monetary metal's price down with various market interventions while they rebuilt their gold reserves, whereupon they would reset gold's price way up, devaluing government's debts and restoring themselves to solvency:
https://www.gata.org/node/11373
In 2009 and 2011 financial letter writer Stewart Thompson foresaw gold revaluation:
https://www.gata.org/node/7090
https://www.gata.org/node/9955
Mexican gold and silver advocate Hugo Salinas Price wrote in 2016 that gold revaluation was coming:
https://www.gata.org/node/16126
For several years London metals trader Andrew Maguire has been saying the same thing:
https://www.gata.org/node/22685
https://www.gata.org/node/23958
Perhaps the most compelling disclosures about gold revaluation have come from gold researcher Jan Nieuwenhuijs.
In 2013, writing under a pseudonym, Nieuwenhuijs called attention to the minutes of a meeting held by U.S. Secretary of State Henry Kissinger and his assistant undersecretary of state for economic and business affairs, Thomas O. Enders, at the State Department in 1974. The minutes of the meeting show that Enders explained that gold revaluation is "the reserve-creating instrument" with which governments can increase their money supply, and warned that Western European countries, having acquired more gold than the United States, were now in a position to out-money the U.S. and change all financial valuations in the world:
https://www.gata.org/node/13310
Starting in 2023, Nieuwenhuijs revealed gold revaluation mechanisms in place with central banks outside the U.S.:
https://www.gata.org/node/22542
https://www.gata.org/node/22761
https://www.gata.org/node/23644
There have been many other commentaries about the possibility of gold revaluation.
With gold and now silver breaking away from the decades-long use of government-underwritten derivatives to suppress their price and support government currencies and bonds -- derivatives creating vast, imaginary supplies of the monetary metals, for which actual delivery now is being demanded -- revaluation seems closer than ever.
But by itself an official revaluation of gold wouldn't automatically trigger a change in the value of privately held gold unless some government imposed a convertibility requirement on itself, a requirement to buy and sell gold at the new price. That much self-discipline from a modern central bank or government seems very unlikely.
Instead, gold revaluation would be mainly an accounting gimmick for more money creation.
In the United States, the Treasury Department would direct the Federal Reserve to revalue the Treasury gold certificates it holds and then credit the Treasury's general account at the Fed with new dollars equal to the increased official value of the gold represented by the certificates. Then the Treasury Department could spend the new money or use it to liquidate debt, or both.
If the revaluation was large enough -- and there would be little point in doing it otherwise -- hundreds of billions or even trillions of dollars could be created and dispensed by the U.S. government. The government's debt limit, already a mere technicality insofar as it is raised by Congress whenever the threat of economizing closes in, would become a trivial detail of history.
With a massive revaluation of gold the government would achieve practically infinite money without issuance of debt and the awkwardness and embarrassment of monetizing bonds -- raw and direct inflation and currency devaluation.
The inflation produced by such practically infinite money, not gold revaluation itself, is what would increase the price of privately held gold and the price of nearly everything else -- at least until government attempted to confiscate gold or to impose "windfall profits" taxes on gold owners. Like gold revaluation, confiscation and "windfall profits" taxes have been used before too.
While the monetary metals are defenders of liberty, they can't do it all by themselves. Whatever happens, liberty's price will remain eternal vigilance.
CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee In
this lame-ass story didn’t even say if the “revaluation” of gold would raise or lower its value!
Agree - Bunch-o-babble.
The gold has been unburdened by what has been.
I believe that was Musk that originally said that. But if can provide proof that Trump promised he would audit Ft Knox, I won’t call you a lying POS.
It would raise it, of course.
Gold is only valued on central bank balance sheets at $35.
Official Treasury holdings, mostly confiscated from the public in the 1930s and known as “coin melt bars” are 90% fine and not considered acceptable as “good delivery” for settling futures contracts. But, supposedly around 6000 tons.
At current prices they represent maybe 3 months of government spending. Chew on that a while. Officially gold is $42.22 a revaluation last made in 1968 when the government was eventually forced to suspend convertibility, so much gold was leaving the vaults and being traded the floor of the London exchange collapsed. Charles De Gaul of France sent a warship to pick up bullion in exchange for dollars. Nixon gets a lot of flak for “closing the gold window” but his hands were tied, he had little choice.
I will take a minute to spoon feed you, son.
“We’re going to go into Fort Knox to make sure the gold is there… do you know about that?” Trump said to a reporter aboard Air Force One,……
https://www.foxbusiness.com/politics/trump-backs-confirming-fort-knox-gold-there-treasury-says
“ We’re actually going to Fort Knox to see if the gold is there. Because maybe somebody stole the gold. Tons of gold,” Trump said Monday afternoon at the White House.
…..and on and on….
Ya, tongue in cheek. He said they would have a look-see, and maybe they did. Hardly a statement promising to audit Ft Knox.
“I will take a minute to spoon feed you, son.”
HAAHAA‼️
‼️THWACK‼️
The Musk/Trump audit talk was ridiculous. The gold is in Fort Knox repository. It is inventoried and tested constantly (room by room) for yearly reporting and the idea that it has been stolen is a concept embraced by people who watch too many movies.
The Fort Knox Repository is monitored 24/7 by humans and all manner of above and below ground sensors. Almost every inch is covered by cameras. The vault cannot be opened by one person (there are something like 12 people who each know a fragment of the combination and who all must be present in order to enter the complete combination). There are numerous individuals who have spoken about the gold holdings, people who actually witnessed and or tested the gold at Fort Knox within the last few years. In order for gold to be missing, it would require a conspiracy of hundreds of people.
This is not a time critical item.
It takes months to prepare.
You are funny.
It’s time for gold to do what it has been doing, and that time is every day!
Um, actually whatever is there is in sealed vaults. The seals are signed by mutiple agencies. In my lifetime, one of the vaults was opened in 1974 and then again, may have been the same vault, in 2017.
.
“ Gold is only valued on central bank balance sheets at $35.”
Pretty sure it’s been $42 since 1971.
Wow! delta7 must be somebody. She’s got a sycophant and everything.
“Since then, the annual audit consists of having the Office of the Inspector General (OIG) of the U.S. Department of the Treasury inspect the seals for any signs of tampering. From 1993 to 2008, the OIG began auditing selected compartments and choosing a statistical sample of gold bars to be weighed and assayed by independent assayers. The total discrepancy from 2004-2008 was 0.0078 troy ounces, which is immaterial. Given the size of the gold reserves of the United States, the discrepancy needs to be at least $310 million to be considered material.”
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