Could the U.S. Treasury be preparing the ground for a major gold revaluation?
In this video, I examine reports that Treasury Secretary Scott Bessent could potentially tap nearly $1 trillion from the Treasury General Account to finance large-scale Treasury bond buybacks. I explain why this could be significant for the gold market and explore another potential source of funding: revaluing America’s enormous official gold reserves.
I look back at the gold revaluations of 1934, 1972 and 1973 and explain how a modern revaluation could work through the gold certificates held by the Federal Reserve—potentially generating hundreds of billions, or even around $1 trillion, for the Treasury without selling the physical gold.
Could a higher statutory gold price help finance Treasury buybacks, establish a new floor beneath the gold price and transform the outlook for gold miners? And could gold once again become an important tool for dealing with America’s growing sovereign-debt problem?
