WEBVTT 00:00:00.000 --> 00:00:03.540 Welcome to the deep dive. We're here to cut through 00:00:03.540 --> 00:00:06.360 the noise and get straight to the crucial insights. 00:00:06.500 --> 00:00:08.720 And today we're tackling something that feels, 00:00:08.839 --> 00:00:10.279 well, almost like a financial riddle, doesn't 00:00:10.279 --> 00:00:14.640 it? The big surge in gold's value and this growing 00:00:14.640 --> 00:00:17.660 chatter about the U .S. possibly revaluing its 00:00:17.660 --> 00:00:20.640 gold reserves. So our mission today, let's unpack 00:00:20.640 --> 00:00:22.859 why gold's suddenly so prominent again. What 00:00:22.859 --> 00:00:26.440 does revaluing actually mean for a country? And, 00:00:26.500 --> 00:00:28.100 you know, what could it signal for the future 00:00:28.100 --> 00:00:31.160 of money? into some sharp analysis from the gold 00:00:31.160 --> 00:00:34.179 IRA companies bulletin and you'll see this right 00:00:34.179 --> 00:00:37.380 away there's this huge frankly stunning gap between 00:00:37.380 --> 00:00:39.640 the official value of US gold and what it's actually 00:00:39.640 --> 00:00:41.259 worth on the market today what does that gap 00:00:41.259 --> 00:00:43.880 really mean let's find out Okay, so to really 00:00:43.880 --> 00:00:45.780 get our heads around this potential revaluation, 00:00:45.939 --> 00:00:48.280 we need to look at this paradox first. America's 00:00:48.280 --> 00:00:50.979 got this massive treasure locked away. But officially, 00:00:51.439 --> 00:00:53.259 it's valued at, well, practically nothing compared 00:00:53.259 --> 00:00:56.960 to its real worth. The U .S. holds about 8 ,133 00:00:56.960 --> 00:01:00.439 tons of gold. That's what, 260 million tri ounces? 00:01:00.920 --> 00:01:03.340 Roughly, yes. And that number has been pretty 00:01:03.340 --> 00:01:06.629 stable since 2024. It's the largest official 00:01:06.629 --> 00:01:08.810 stash anywhere in the world, right? But here's 00:01:08.810 --> 00:01:11.829 where it gets like truly wild the official book 00:01:11.829 --> 00:01:14.329 value What the Treasury says it's worth is around 00:01:14.329 --> 00:01:18.150 11 billion dollars 11 billion. Yeah, which works 00:01:18.150 --> 00:01:21.810 out to only about $42 and 22 cents per ounce 00:01:21.810 --> 00:01:25.709 It's based on what rules from the 70s? Actually, 00:01:25.730 --> 00:01:28.629 the funny $2 .22 figure dates back to an accounting 00:01:28.629 --> 00:01:32.049 change in 1973 after the final break from gold 00:01:32.049 --> 00:01:34.209 convertibility It's really a historical artifact 00:01:34.219 --> 00:01:36.480 OK, historical effect. But then you look at gold's 00:01:36.480 --> 00:01:39.859 market price in 2025, it's flying high, over 00:01:39.859 --> 00:01:43.019 $3 ,400 an ounce. Exactly. So there's this enormous 00:01:43.019 --> 00:01:45.900 unrealized value just sitting there on the government's 00:01:45.900 --> 00:01:48.140 books. It really is like having a priceless painting 00:01:48.140 --> 00:01:50.159 valued at what you paid for it 50 years ago, 00:01:50.239 --> 00:01:53.000 this huge asset, officially worth, well, not 00:01:53.000 --> 00:01:55.379 much. That's a great way to put it. And the reason 00:01:55.379 --> 00:01:58.060 why it's valued like that goes way back. It's 00:01:58.060 --> 00:01:59.879 rooted in the old gold standard days, Bretton 00:01:59.879 --> 00:02:02.549 Woods. Yeah. times when the dollar's value was 00:02:02.549 --> 00:02:05.750 directly tied to a fixed gold price. That history 00:02:05.750 --> 00:02:09.090 is absolutely crucial for understanding why things 00:02:09.090 --> 00:02:11.849 are the way they are now. Think about the 1934 00:02:11.849 --> 00:02:14.270 Gold Reserve Act. That was huge. Right. Didn't 00:02:14.270 --> 00:02:16.550 that change the price significantly? Dramatically. 00:02:16.810 --> 00:02:20.969 It hiked the official price from $20 .67 up to 00:02:20.969 --> 00:02:23.990 $35 an ounce. Wow. And that wasn't just numbers 00:02:23.990 --> 00:02:26.469 on a page. It had a massive real -world impact. 00:02:26.669 --> 00:02:29.349 It basically allowed for a huge expansion of 00:02:29.349 --> 00:02:30.849 the money supply during the Great Depression. 00:02:31.650 --> 00:02:33.990 It gave the government and the Fed more ammunition. 00:02:35.009 --> 00:02:37.909 And another key part, people had to turn in their 00:02:37.909 --> 00:02:40.689 gold at the old lower price. Ah, right. So it 00:02:40.689 --> 00:02:42.849 consolidated gold in government hands. Exactly. 00:02:43.129 --> 00:02:45.129 Consolidated reserves, transferred wealth to 00:02:45.129 --> 00:02:47.090 the public sector, all to fight the Depression. 00:02:47.469 --> 00:02:49.830 And that history, that precedent of using the 00:02:49.830 --> 00:02:53.030 gold price as a policy lever, That's right at 00:02:53.030 --> 00:02:54.590 the heart of today's conversation. It shows it 00:02:54.590 --> 00:02:57.090 could be a tool for stabilization for crisis 00:02:57.090 --> 00:02:59.569 management Okay, so that historical context is 00:02:59.569 --> 00:03:02.349 really illuminating but how much of what's happening 00:03:02.349 --> 00:03:05.250 now is just history repeating itself and how 00:03:05.250 --> 00:03:09.310 much is driven by totally new things like The 00:03:09.310 --> 00:03:12.469 BRICS countries actively trying to you know D 00:03:12.469 --> 00:03:14.710 dollar eyes. Let's look at the global picture 00:03:14.710 --> 00:03:17.030 now because it feels like things are really shifting 00:03:17.030 --> 00:03:19.930 That's a really important question history gives 00:03:19.930 --> 00:03:22.919 us a template Maybe, but today's dynamics are 00:03:22.919 --> 00:03:25.379 different. The BRICS nations, Brazil, Russia, 00:03:25.639 --> 00:03:28.259 India, China, South Africa, they aren't just 00:03:28.259 --> 00:03:30.360 talking, they're building. They're setting up 00:03:30.360 --> 00:03:32.840 alternative payment systems, doing more trade 00:03:32.840 --> 00:03:34.780 in their own currencies. And using gold. And 00:03:34.780 --> 00:03:37.060 definitely using gold. They see it as a way to 00:03:37.060 --> 00:03:39.639 backstop against dollar ups and downs, a path 00:03:39.639 --> 00:03:42.680 to, let's say, monetary independence. Look at 00:03:42.680 --> 00:03:44.919 Russia launching its own gold exchange to challenge 00:03:44.919 --> 00:03:48.259 Western pricing, or China. They're buying up 00:03:48.259 --> 00:03:50.060 gold aggressively. It's strategic. It sounds 00:03:50.060 --> 00:03:52.280 like a direct challenge. Yeah, it is. It's about 00:03:52.280 --> 00:03:54.500 shifting the balance away from Western financial 00:03:54.500 --> 00:03:57.780 dominance. And it's not just bricks, is it? We're 00:03:57.780 --> 00:04:00.020 seeing central banks all over the world piling 00:04:00.020 --> 00:04:02.379 into gold, especially in emerging markets, maybe 00:04:02.379 --> 00:04:05.120 more so than in, say, Europe or the U .S. It 00:04:05.120 --> 00:04:07.539 looks like diversification. Absolutely. It's 00:04:07.539 --> 00:04:10.539 a clear trend. And here's a striking fact. As 00:04:10.539 --> 00:04:14.280 of mid 2025, gold has actually overtaken the 00:04:14.280 --> 00:04:17.040 euro. Overtaking the euro as well as the world's 00:04:17.040 --> 00:04:19.180 second largest reserve asset held by central 00:04:19.180 --> 00:04:22.339 banks. It's now about 19 percent of global foreign 00:04:22.339 --> 00:04:25.300 reserves. Wow. OK, that's significant. It really 00:04:25.300 --> 00:04:28.759 is. It underscores gold's enduring role as the 00:04:28.759 --> 00:04:30.759 ultimate safe haven when things get uncertain 00:04:30.759 --> 00:04:33.240 inflation, geopolitical tension, you name it. 00:04:33.540 --> 00:04:35.199 Governments are buying it as a strategic anchor. 00:04:35.399 --> 00:04:38.220 OK, so we have the history, the global shifts, 00:04:38.399 --> 00:04:40.939 the central bank buying. It all leads back to 00:04:40.939 --> 00:04:43.600 this big question for the US. What is a gold 00:04:43.600 --> 00:04:46.160 revaluation, practically speaking? Let's just 00:04:46.160 --> 00:04:48.060 define it simply first. OK, simply put, it's 00:04:48.060 --> 00:04:49.959 just changing the official price tag on the gold 00:04:49.959 --> 00:04:52.060 the government holds. Yeah. Adjusting that old 00:04:52.060 --> 00:04:55.139 $42 figure to something much closer to today's 00:04:55.139 --> 00:04:56.920 market price. Right. Changing the number on the 00:04:56.920 --> 00:05:00.420 books. Yes. But the effect could be huge. Suddenly, 00:05:00.800 --> 00:05:03.860 the notional value of those U .S. reserves skyrockets. 00:05:04.399 --> 00:05:06.019 This could make the government's balance sheet 00:05:06.019 --> 00:05:08.579 look much stronger, potentially giving it more 00:05:08.579 --> 00:05:12.100 flexibility in monetary policy, all without actually 00:05:12.100 --> 00:05:14.480 increasing the national debt. OK, so it's like 00:05:14.480 --> 00:05:17.040 finding hidden value on your own balance sheet. 00:05:17.240 --> 00:05:19.720 Pretty much, yeah. And why might the U .S. even 00:05:19.720 --> 00:05:22.459 think about doing this? Well, there are a few 00:05:22.459 --> 00:05:25.199 potential reasons. One, the massive national 00:05:25.199 --> 00:05:28.220 debt. Revaluing gold could make the government's 00:05:28.220 --> 00:05:30.279 capital reserves look much bigger, maybe easing 00:05:30.279 --> 00:05:33.500 some pressure there. Two, fears about inflation 00:05:33.500 --> 00:05:35.600 or maybe declining confidence in the dollar, 00:05:36.339 --> 00:05:38.459 goals could act as a stronger backstop. Right. 00:05:38.720 --> 00:05:41.319 And three, it could be a strategic signal. a 00:05:41.319 --> 00:05:43.040 response to what Briggs and others are doing, 00:05:43.220 --> 00:05:45.000 showing the U .S. still has powerful options 00:05:45.000 --> 00:05:47.779 in this changing world order. Basically, it could 00:05:47.779 --> 00:05:50.360 allow the U .S. to, say, inject liquidity or 00:05:50.360 --> 00:05:52.860 shore up its finances without issuing more debt 00:05:52.860 --> 00:05:55.220 or raising taxes. And the numbers we're talking 00:05:55.220 --> 00:05:57.079 about are just staggering, aren't they? If they 00:05:57.079 --> 00:05:59.160 revalued near the current market price, say $3 00:05:59.160 --> 00:06:03.120 ,400. Or even higher, potentially. That $11 billion 00:06:03.120 --> 00:06:05.920 book value could jump to over a trillion dollars. 00:06:06.079 --> 00:06:08.480 Easily. Maybe significantly more, depending on 00:06:08.480 --> 00:06:11.949 the price they chose. It's a massive potential 00:06:11.949 --> 00:06:14.410 shift in perceived wealth. A trillion dollars 00:06:14.410 --> 00:06:16.250 just appearing on the books. And that brings 00:06:16.250 --> 00:06:19.310 us right back to 1934, doesn't it? How so? Well, 00:06:19.449 --> 00:06:22.430 back then, revaluation let the government unlock 00:06:22.430 --> 00:06:25.670 gold's value to help the economy. Potential revaluation 00:06:25.670 --> 00:06:29.410 today could function similarly, maybe, but on 00:06:29.410 --> 00:06:32.230 a vastly bigger scale. It could impact the Fed's 00:06:32.230 --> 00:06:35.370 toolkit, offer huge fiscal breathing room. It's 00:06:35.370 --> 00:06:37.600 potentially transformative. Okay, transformative, 00:06:37.879 --> 00:06:40.420 but surely there are risks, too. Something this 00:06:40.420 --> 00:06:43.439 monumental can't be all upside. No, absolutely 00:06:43.439 --> 00:06:45.699 not. There are definite risks to consider. Like 00:06:45.699 --> 00:06:48.199 inflation? That's a big one. Pumping potentially 00:06:48.199 --> 00:06:50.600 trillions of notional value onto the books could 00:06:50.600 --> 00:06:53.259 fuel inflation down the line. Usually there's 00:06:53.259 --> 00:06:55.620 a lag, maybe several months, but it's a real 00:06:55.620 --> 00:06:58.759 concern. Hmm. Well, confidence. What does it 00:06:58.759 --> 00:07:01.579 do to people's trust in regular fiat currency, 00:07:01.899 --> 00:07:04.939 in the dollar? If the government suddenly emphasizes 00:07:04.939 --> 00:07:07.819 gold this much, could it inadvertently weaken 00:07:07.819 --> 00:07:10.379 faith in the everyday money we use? That's a 00:07:10.379 --> 00:07:13.899 risk of currency debasement. And how would the 00:07:13.899 --> 00:07:16.420 public react? It could be unpredictable. Very 00:07:16.420 --> 00:07:19.259 unpredictable. Managing the timing, the messaging, 00:07:19.639 --> 00:07:22.240 that would be incredibly tricky to avoid market 00:07:22.240 --> 00:07:25.040 shocks or public confusion. And then, you know, 00:07:25.040 --> 00:07:26.740 there are these more historical, maybe fringe 00:07:26.740 --> 00:07:29.850 concerns about Well, scenarios like the great 00:07:29.850 --> 00:07:32.370 taking. The great taking. What's that? It refers 00:07:32.370 --> 00:07:35.110 to historical instances or theories about potential 00:07:35.110 --> 00:07:37.870 future ones where governments might move to consolidate 00:07:37.870 --> 00:07:41.209 gold, even privately held gold, before implementing 00:07:41.209 --> 00:07:43.949 inflationary policies. It touches on fears about 00:07:43.949 --> 00:07:46.209 state control versus private monetary freedom. 00:07:46.610 --> 00:07:48.790 While it's a debated idea, it highlights why 00:07:48.790 --> 00:07:51.389 some people see physical gold as a hedge, not 00:07:51.389 --> 00:07:53.829 just an investment. Right. A hedge against uncertainty, 00:07:54.009 --> 00:07:56.740 maybe even government action. Exactly. Less speculation, 00:07:56.959 --> 00:07:59.699 more fundamental monetary safeguard. And all 00:07:59.699 --> 00:08:03.160 this is happening against a backdrop of, well, 00:08:03.160 --> 00:08:05.399 a pretty turbulent world, isn't it? We've got 00:08:05.399 --> 00:08:08.620 conflicts, energy market shocks, trade tensions. 00:08:08.939 --> 00:08:11.000 It feels like a bigger struggle is playing out. 00:08:11.319 --> 00:08:14.759 Definitely. Ukraine, the Middle East, these conflicts 00:08:14.759 --> 00:08:17.459 ripple through everything. Energy, trade, financial 00:08:17.459 --> 00:08:19.540 stability. And underneath, you see this tension 00:08:19.540 --> 00:08:22.480 between the current sort of U .S.-led global 00:08:22.480 --> 00:08:26.040 order and these emerging blocks. like bricks, 00:08:26.480 --> 00:08:28.620 pushing for a more multipolar financial system. 00:08:28.779 --> 00:08:31.180 A global chessboard, as you said. It really is. 00:08:31.300 --> 00:08:33.299 And interestingly, all this instability, it tends 00:08:33.299 --> 00:08:35.799 to make gold look more attractive as a safe haven. 00:08:36.480 --> 00:08:38.639 Looking out towards, say, the end of the decade, 00:08:39.080 --> 00:08:40.799 some analysts think we might be heading for a 00:08:40.799 --> 00:08:43.639 major crisis or some kind of financial reset. 00:08:43.779 --> 00:08:45.899 A reset. Yeah, potentially a shift away from 00:08:45.899 --> 00:08:48.519 systems built purely on debt towards models maybe 00:08:48.519 --> 00:08:50.940 incorporating commodities, equity, with gold 00:08:50.940 --> 00:08:53.389 playing a key role. Symbolically and practically, 00:08:53.769 --> 00:08:56.149 we could be seeing the early stages now. So bringing 00:08:56.149 --> 00:08:58.149 this all back home, what does this mean for you, 00:08:58.149 --> 00:08:59.870 the listener? It sounds like we need to separate 00:08:59.870 --> 00:09:02.230 how governments see gold versus how an individual 00:09:02.230 --> 00:09:04.610 might, right? That's absolutely crucial. Governments 00:09:04.610 --> 00:09:07.110 and central banks hold gold as a reserve asset. 00:09:07.370 --> 00:09:10.409 It's about credibility, stability, having options 00:09:10.409 --> 00:09:13.090 in a crisis, backing the currency system. They 00:09:13.090 --> 00:09:15.389 aren't primarily chasing capital gains like an 00:09:15.389 --> 00:09:17.549 investor might. OK, so it's foundational for 00:09:17.549 --> 00:09:21.009 them. Foundational stability, exactly. not speculative 00:09:21.009 --> 00:09:23.590 profit. So for our listeners, the advice isn't 00:09:23.590 --> 00:09:26.429 necessarily run out and buy gold, but more about 00:09:26.429 --> 00:09:28.950 understanding these bigger dynamics. Precisely. 00:09:29.389 --> 00:09:32.039 It's about monitoring the key indicators. Keep 00:09:32.039 --> 00:09:34.019 an eye on what central banks are doing. Watch 00:09:34.019 --> 00:09:36.320 gold reserve trends. Follow the geopolitical 00:09:36.320 --> 00:09:38.679 shifts. Understanding these forces helps you 00:09:38.679 --> 00:09:41.240 grasp the evolving monetary landscape without 00:09:41.240 --> 00:09:43.519 necessarily making impulsive investment decisions. 00:09:44.220 --> 00:09:46.259 Knowledge is the key here. Right. Stay informed. 00:09:46.700 --> 00:09:48.899 And if you want to dig deeper, there's some great 00:09:48.899 --> 00:09:51.419 reliable resources out there. The World Gold 00:09:51.419 --> 00:09:53.919 Council is excellent. The Federal Reserve website 00:09:53.919 --> 00:09:57.220 itself. Check out data providers like CEIC data 00:09:57.220 --> 00:09:59.899 or trading economics too. They offer solid data 00:09:59.899 --> 00:10:02.679 and analysis. Good resources. Okay, so let's 00:10:02.679 --> 00:10:04.919 try and wrap this up. The main takeaway seems 00:10:04.919 --> 00:10:09.139 to be this big jump in gold's price plus all 00:10:09.139 --> 00:10:12.259 the global shifts has brought the idea of a US 00:10:12.259 --> 00:10:15.000 gold revaluation back onto the table in a serious 00:10:15.000 --> 00:10:17.519 way. And it's not just some obscure accounting 00:10:17.519 --> 00:10:19.240 issue. It could have really profound effects 00:10:19.240 --> 00:10:22.179 on money and finance. That's it. Exactly. We 00:10:22.179 --> 00:10:24.519 don't know if or when it might happen or how 00:10:24.519 --> 00:10:27.039 big it might be. Yeah. But the potential for 00:10:27.039 --> 00:10:29.700 it to reshape the U .S. monetary system is huge. 00:10:30.120 --> 00:10:32.559 So watching these developments closely with the 00:10:32.559 --> 00:10:35.200 facts is really vital to understand where global 00:10:35.200 --> 00:10:37.220 finance might be heading. It's definitely a story 00:10:37.220 --> 00:10:39.139 that's still unfolding. Absolutely. So here's 00:10:39.139 --> 00:10:41.440 a final thought to leave you with. In this world 00:10:41.440 --> 00:10:43.600 of shifting power and economic unknowns, how 00:10:43.600 --> 00:10:46.669 might gold's role keep changing? And maybe, what 00:10:46.669 --> 00:10:49.190 other assets could possibly emerge as the ultimate 00:10:49.190 --> 00:10:51.669 safe havens in the years and decades ahead? Something 00:10:51.669 --> 00:10:52.269 to think about.