America’s Gold Problem Just Got Harder to Ignore

Okay, we have to talk about America's gold, because something very strange is happening right now. A former CIA official was just arrested after investigators found more than 300 government gold bars in his home worth over $40 million. Now, apparently, he requested these bars over time for work expenses. What those work expenses are, however, no one seems to know. And then, just days later, President Trump posts on True Social, time to audit Fort Knox. Now, I can guess what half of you are thinking, finally, the audit we've been waiting for and a trigger for something much bigger around gold. But I can guess what the other half of you are thinking, okay, so the president promised this two years ago and nothing happened, why would this time be any different? But the more I started digging into this story, the more I realized we might all be asking the wrong question. Right now, the conversation is all around whether or not the gold is there. And we all have our own beliefs on that. Spoiler alert, I personally believe we have a better chance of finding Bigfoot in Fort Knox than we do the gold. But that's neither here nor there. In fact, there's a much more interesting question we should be asking. Pull up the US Treasury balance sheet right now and find the line item for gold. Next to it, you will see a number that makes absolutely no sense, $42.22. That is the official price of every single, every single ounce of gold that the US government owns, not 4,500, not 4,000, no, $42.22 an ounce, a price that was set in 1973 that has never been updated. Now, if we took Fort Knox and we assume all the gold is there, that would be about 150 million ounces of gold. At roughly 42 bucks, we're looking at $6 billion worth of gold. But if we were to price that gold at current spot day prices, well, now that number jumps up closer to half a trillion dollars worth of gold. So then I started asking myself, why? Why would the world's most powerful government leave such a massive asset so severely undervalued on their books, leaving it that way through debt crises, through bank failures, recessions? And then I realized that the answer is actually very simple, simple and deliberate. The moment that the US updates that number, they've done something that they can't undo. They have put gold back at the center of the monetary system. And for a monetary system that is reliant on paper confidence, that is an existential threat. What I mean by that is that the dollar is not backed by gold. The dollar is backed by two things, oil and trust. And the oil backing the dollar, well, the petrodollar agreement, those days are numbered. It's crumbling in front of our very eyes. As far as trust goes, well, trust, you have to believe that the US government is going to honor its debt obligations, that the bonds are safe, that the US institutions holding your money, that they will honor their promises. It's a big ask, but this is where gold comes into play, because gold doesn't need a central bank promise. It doesn't rely on policy or politics. No, gold has outlasted every empire, every currency and every monetary system that has tried to replace it. So when the institution that's telling you that gold doesn't matter is the same one who's refusing to update a number because it would prove that gold does, well, that should tell you something. But not only that, think about this. Every central bank on earth right now, they all hold gold. Not only do they hold it, but they've been buying the most gold over the last five years in modern history. So if gold is really such an outdated relic, if the system we live in really doesn't need gold at all, why are they, number one, buying it like it's cheap? And number two, why don't they just sell all of their gold and be done with it? The answer is, is that they are positioning for what's coming next. They know how this ends and they want to make sure that their gold is in their hands before it happens. See, the moment that gold gets revalued, it's not just an accounting update. It is an admission by the United States that the dollar has lost the majority, almost all of its purchasing power since 1973. That's when you realize that that $42.22, it's never made sense until you understand that it was never about what the real value of gold was. It was always about protecting the dollar's image. So why is all of this being brought up right now? And what does history show us about who wins and who gets wiped out if they actually do it? To answer that question, we have to go back because this has happened before in America. In 1934, President Roosevelt revalued the gold from $20.67 an ounce to $35 an ounce. Not because that was fair market value, but because he wanted to revalue it even higher to increase the price of America's gold reserves. By doing that, the balance sheet looks exponentially better. Now, anyone holding gold during this revaluation who already had their gold, they saw their wealth increase by nearly 70% as a result of this revaluation. But anyone holding dollars, anyone holding the fiat currency, they had the exact opposite effect, losing nearly 40% of their purchasing power overnight. But here's the kicker. President Roosevelt didn't just revalue the gold higher. First, he made sure to repatriate the gold. Many of you are probably familiar with gold confiscation or Executive Order 6102, where it was required to turn in your gold bullion at $20.67 an ounce in exchange for fiat currency. It was only then, once they had the gold bullion, that he revalued it higher, once it was out of the hands of the American people and in the hands of the government. Now, rare and unique gold coins were exempt from this executive order, which I always call out because I get questions all the time from clients asking about their gold and silver strategy. And this is why it matters so much that when you purchase your gold and silver, you work with someone who understands gold laws as well as what you're concerned about so that you can protect yourself against these situations. And what happened in 1971 when President Nixon delinked the dollar from gold? Well, gold, of course, spot price surged, and it was revalued higher twice to $38 and then to the $42.22, where it still sits today. But everyone who held their wealth in the fiat currency, in paper, right, in dollars, they lost nearly half of their purchasing power over the next decade, which is when I realized that in all of these cases, the people who protected their wealth and actually gained wealth on the other side of the revaluation weren't the ones who saw what was coming next. They were the ones who positioned before the revaluation happened. Because if you wait while the rules have already changed, the wealth transfer has already started in the announcement, that's just a way to let everyone else know. But I'd be remiss to not bring up something else that a lot of people skip over when they talk about gold revaluation. See, in 1971, when President Nixon closed the gold window, what happened to all of the nations that were holding dollars that were promised that they could convert those dollars into gold? Well, when the U.S. defaulted on that promise, they were all stuck, stuck with the dollar whether they wanted it or not. And their promise was nothing more than a broken claim on gold. The U.S. got to keep the physical gold. Everyone else was stuck with this. And today, when I think about today, people always ask me about physical versus digital gold. We talk about digital gold, all the gold that's out there, gold ETFs or tokenization. If you just want price exposure, that's fine. That's fine. Go get a gold ETF. But if you are concerned about counterparty risk, if you are concerned about what's happening to the value of the dollar and you want to have real gold, you have to realize that a promise is not the same thing as a real deal. Promises can and have been broken, especially when it comes to physical gold. If it's not in your hands, if you don't hold it, you don't own it. Not all gold is treated equally under the law. And that's why I always encourage you guys, if you have any questions or you want a second opinion on your personal gold and silver strategy or the gold and silver you own or what to buy, call us at the number below. Talk to one of our expert analysts. We have 30 years of experience in this business and can help you protect your wealth, especially against what's coming next. And listen, I don't know if a gold repatriation and revaluation is happening tomorrow. In fact, I want to hear from you. What do you guys think? Tell me your thoughts in the comments below. How close are we to this happening? Do you think it's going to happen at all? And if so, how close are we? I wish I could tell you an exact timeline. But what I do know is that we now have a top CIA official with 40 million dollars worth of gold bars in his home. We have the president of the United States calling for an official audit of Fort Knox. We have central banks buying the most gold that they have in modern history over the last five years with no signs of slowing. And we have treasuries, treasury bonds, U.S. treasury bonds that no one wants. The demand is absolutely sinking while we are sitting on nearly 40 trillion dollars of debt. There is a crisis point and we are fast approaching it. And if the Federal Reserve themselves are even doing research on a gold revaluation, issuing their own notes about what it would do to the U.S., well, that tells you that this isn't nothing. We started this question today talking about whether or not the gold is actually in Fort Knox. And as I mentioned, I don't think that's the most important question. I actually think the question that we all should be asking ourselves isn't whether the gold is there, but whether you personally have gold in your hands to protect yourself against what's coming next. And again, if you have any questions about that process, what it looks like to buy gold and silver, we are a full service gold and silver dealer here at ITM Trading. But more than that, we work with our clients to understand your goals, your concerns. And again, we have a wealth of knowledge around not only gold laws, but currency resets throughout history. And if you don't understand exactly what you're preparing for, then it's going to be really tough to position yourself correctly. So call us at the number below. There's a Calendly link in the description if you want to set up a time that works best for you. Or you can scan the QR code to get more information. We have a free gold and silver guide that covers a ton of information about gold and silver. So download your copy today so you always have it. And in the meantime, thank you so much for being here. I'm Taylor Kenney with ITM Trading, your trusted source for all things gold, silver, and lifelong wealth protection. Until next time.