And, not unironically, the revaluation of gold will also send the price of gold (not to mention bitcoin and anything else that may also be subsequently remonetized) soaring.
The ZeroHedge article posits that a reevaluation—or "mark-to-market"—of the US Treasury's gold reserves, now valued at over $1 trillion amid gold's 45% year-to-date surge, could unlock roughly $990 billion in fiscal windfall without selling physical metal. This would involve updating the official book value from the antiquated $42.22 per ounce (set in 1973) to current market levels around $3,890 per ounce, effectively crediting the Treasury's account at the Federal Reserve via new gold certificates. The process mirrors quantitative easing by expanding both Treasury and Fed balance sheets, potentially easing fiscal pressures like the $1.973 trillion budget deficit through August 2025, while injecting liquidity that could stoke inflation and economic activity. Historical precedents include revaluations by Germany, Italy, and South Africa in recent decades, which funded deficits or stabilized reserves without major market disruptions, though the US hasn't adjusted since 1973 to avoid volatility and preserve monetary independence.
If such a reevaluation occurs, the direct impact on gold prices would likely be limited in the narrow accounting sense—simply recognizing current market value doesn't inherently alter supply or demand dynamics, and could even reduce some speculative buying pressure if it signals fiscal relief without broader monetary shifts. However, broader market reactions point to significant upside potential, as the move would act as a powerful endorsement of gold's role in the global monetary system, potentially accelerating central bank accumulation (already at ~900 tonnes annually) and investor inflows into ETFs and physical holdings. Analysts and commentators widely anticipate this could "send the price of gold soaring," with the psychological boost from official recognition driving renewed safe-haven demand amid ongoing trade tensions, dollar weakness, and debt concerns.
Key Potential Effects on Gold Prices
Short-Term Surge (Bullish Sentiment): The announcement alone could propel prices 10–20% higher in weeks, as seen in past reserve adjustments that boosted global gold demand. For instance, tying revaluation to Trump's proposed 39% gold tariff could amplify this, pushing effective prices toward $5,000+ per ounce by factoring in import costs and signaling a "remonetization" of gold as a neutral reserve asset. X discussions echo this, with users forecasting multiples above current levels to "bail out" US debt solvency without overt money printing.
Medium-Term Gains (Structural Demand): A $1 trillion hoard at market value equates to ~261.5 million ounces; revaluing to even $5,000/oz (a conservative "partial backing" scenario) would add ~$1.3 trillion to the balance sheet, but sustaining that implies ongoing support for higher prices via policy. Every $4,000 price increment adds another $1 trillion in implied value, creating a self-reinforcing loop where revaluation incentivizes holding or acquiring more gold, potentially lifting averages to $4,500–$6,000 by mid-2026. Extreme views suggest $10,000–$20,000/oz if linked to full debt backing (~$137,700/oz hypothetically), though this risks hyperinflation and USD devaluation.
Risks of Downside or Volatility: Critics warn of inflationary backlash, as the QE-like liquidity flood could erode Fed credibility and spike import costs, capping gains if equities rally or rates stay elevated. If prices dip below the revalued level post-announcement, it could trigger forced adjustments or market backlash, though historical international cases show minimal long-term price suppression. Legal hurdles and Treasury Secretary Bessent's initial dismissal temper near-term odds, but surging speculation (e.g., COMEX inventories up 75% and London vaults depleting) suggests momentum is building.
Overall, while a pure accounting revaluation to today's price might add only modest upward pressure (~3–5% initially), the systemic signal of gold's resurgence as a fiscal tool would likely dominate, propelling prices toward $4,500+ in a base case and higher in aggressive scenarios—reinforcing gold's role as a portfolio hedge in an era of fiscal experimentation. This aligns with ongoing Basel III rules treating gold as a Tier 1 asset since July 2025, further embedding its value in reserve calculations.
Looks like gold will destroy the FED.
KEK
And, not unironically, the revaluation of gold will also send the price of gold (not to mention bitcoin and anything else that may also be subsequently remonetized) soaring.
Heading to 4K!
Yup but I don't know what that gives us. I'm not going to sell, are you?
I could be crazy but I'd rather see gold take a dive to 2K area again so I could buy, rather that it go to 4 or 5K.
Did Trump not issue an executive order that requires the the FED to do some magic trick with gold certificates? ....
multi pronged attack. I don't think you realize how big the problem is
true..i was replying from an emotional state of mind.. just needed to vent
all good bro.
The ZeroHedge article posits that a reevaluation—or "mark-to-market"—of the US Treasury's gold reserves, now valued at over $1 trillion amid gold's 45% year-to-date surge, could unlock roughly $990 billion in fiscal windfall without selling physical metal. This would involve updating the official book value from the antiquated $42.22 per ounce (set in 1973) to current market levels around $3,890 per ounce, effectively crediting the Treasury's account at the Federal Reserve via new gold certificates. The process mirrors quantitative easing by expanding both Treasury and Fed balance sheets, potentially easing fiscal pressures like the $1.973 trillion budget deficit through August 2025, while injecting liquidity that could stoke inflation and economic activity. Historical precedents include revaluations by Germany, Italy, and South Africa in recent decades, which funded deficits or stabilized reserves without major market disruptions, though the US hasn't adjusted since 1973 to avoid volatility and preserve monetary independence.
If such a reevaluation occurs, the direct impact on gold prices would likely be limited in the narrow accounting sense—simply recognizing current market value doesn't inherently alter supply or demand dynamics, and could even reduce some speculative buying pressure if it signals fiscal relief without broader monetary shifts. However, broader market reactions point to significant upside potential, as the move would act as a powerful endorsement of gold's role in the global monetary system, potentially accelerating central bank accumulation (already at ~900 tonnes annually) and investor inflows into ETFs and physical holdings. Analysts and commentators widely anticipate this could "send the price of gold soaring," with the psychological boost from official recognition driving renewed safe-haven demand amid ongoing trade tensions, dollar weakness, and debt concerns.
Key Potential Effects on Gold Prices
Short-Term Surge (Bullish Sentiment): The announcement alone could propel prices 10–20% higher in weeks, as seen in past reserve adjustments that boosted global gold demand. For instance, tying revaluation to Trump's proposed 39% gold tariff could amplify this, pushing effective prices toward $5,000+ per ounce by factoring in import costs and signaling a "remonetization" of gold as a neutral reserve asset. X discussions echo this, with users forecasting multiples above current levels to "bail out" US debt solvency without overt money printing.
Medium-Term Gains (Structural Demand): A $1 trillion hoard at market value equates to ~261.5 million ounces; revaluing to even $5,000/oz (a conservative "partial backing" scenario) would add ~$1.3 trillion to the balance sheet, but sustaining that implies ongoing support for higher prices via policy. Every $4,000 price increment adds another $1 trillion in implied value, creating a self-reinforcing loop where revaluation incentivizes holding or acquiring more gold, potentially lifting averages to $4,500–$6,000 by mid-2026. Extreme views suggest $10,000–$20,000/oz if linked to full debt backing (~$137,700/oz hypothetically), though this risks hyperinflation and USD devaluation.
Risks of Downside or Volatility: Critics warn of inflationary backlash, as the QE-like liquidity flood could erode Fed credibility and spike import costs, capping gains if equities rally or rates stay elevated. If prices dip below the revalued level post-announcement, it could trigger forced adjustments or market backlash, though historical international cases show minimal long-term price suppression. Legal hurdles and Treasury Secretary Bessent's initial dismissal temper near-term odds, but surging speculation (e.g., COMEX inventories up 75% and London vaults depleting) suggests momentum is building.
Overall, while a pure accounting revaluation to today's price might add only modest upward pressure (~3–5% initially), the systemic signal of gold's resurgence as a fiscal tool would likely dominate, propelling prices toward $4,500+ in a base case and higher in aggressive scenarios—reinforcing gold's role as a portfolio hedge in an era of fiscal experimentation. This aligns with ongoing Basel III rules treating gold as a Tier 1 asset since July 2025, further embedding its value in reserve calculations.