➡ There’s a growing discussion about the potential revaluation of gold, which could be linked to the sovereign wealth fund. This idea has moved from being a fringe concept to a mainstream topic, especially after Donald Trump signed an executive order for a sovereign wealth fund. However, most banks believe the chances of this happening are slim. The revaluation of gold could have significant effects on bonds, the yield curve, and stocks, and could potentially be very inflationary.
➡ The article discusses the increasing conversation around a potential gold reset, driven by social media and influential figures like Elon Musk and Donald Trump. It highlights how mainstream media is starting to pick up on this topic, which has been largely discussed on platforms like Zero Hedge. The article also mentions the significant increase in gold deliveries to the US, suggesting that the country is not only repatriating gold but also adding to its reserves. Lastly, it raises questions about the potential impact of a gold reset on its price and what the funds would be used for.
➡ The value of gold could increase if it’s revalued to a higher price, especially if other central banks follow suit. This could encourage more people to buy gold, expecting its value to rise further. However, how the funds from this revaluation are used is crucial. If they’re spent irresponsibly, it could lead to further increases in gold’s value, as seen in the 1970s. On the other hand, if the funds are used to reduce debt, it might not significantly boost gold’s value but could be beneficial for stocks. The likelihood of this happening is currently seen as low by some banks, but the unorthodox nature of current events suggests it’s a possibility worth considering.

There is much bigger, much more cohesive talk about gold being revalued at a higher price. We don’t know the price, we don’t know the use of the funds. If it were to happen, we do know it’s going to be tied to the sovereign wealth fund. If it were to happen. Most banks are explained, not most. Some banks are explaining it now and saying the probability of it happening is very small and there are reasons we think are weak and it’s not orthodox. Well, what’s orthodox about Donald Trump? Welcome to the Morning Markets and Metals with Vince Lancy where each morning Vince brings you the financial and precious metals news.

Get you ready for your day. And now here’s Vince. Okay, separating fact from fiction. It’s been a very heady last year and an extremely heady, frothy, if you will, last 72 hours. The whole, specifically the whole resetting of the gold price has gone from the fringe to practically the mainstream. I’d say ground zero for the increased chatter about its starts when Donald Trump signed an executive order for a sovereign wealth fund and Scott percent said standing next to him that we intend to monetize the assets on the US Balance sheet in conjunction with the sovereign wealth fund.

Now there are several, many assets but the one, but gold is the one that has caught everyone’s imagination. Obviously everyone’s not just our imagination. Immediately after that, those in the know gold fixed people such as yourselves, zero hedge people, gold bugs in general and people that are financially literate on these topics because this has far reaching effects for bonds, the yield curve for the TGA and for stocks. Ultimately this will function if it’s done even if they don’t buy bonds, this will function in the marketplace like a qa. So it could literally be very inflationary. At the same time, all these people, these analysts started talking about it and it became a viral topic.

But the analysts who cover precious metals and those that don’t cover precious metals, the real analyst referring to the banks or the boutique investment firms or people like ourselves started talking differently or not writing at all. Differently meaning. Well, let me explain it. Some analysts started writing about gold and in increasingly frank terms, but still not touching on the reset concept. I’m referring to bank of America and Citibank as banks that started speaking in increasingly frank terms about gold but without touching on the reset. Specifically, the most recent 3500 report that bank of America put out describing gold’s rise would be contingent upon acceptance in the insurance industry.

And then Citibank’s report which mentioned but didn’t go over the top. That gold could go to 3400, citing their physical model and their new way of looking at gold. Others at the banking level stop talking about gold at all because they really had nothing good to say or because they were short. Who knows, you know? Anyway, so that’s where it began. So you have this ground zero event and you have us, people like us on a platform like X, which serves like a megaphone now of public opinion. It’s an instantaneous poll and it gets enough critical mass in combination obviously with the fact that London gold is being drained, the price is going up and all just in the news, even in cursory fashion.

And you put all those things together and the analysts have to start writing about it, but they don’t want to talk about the reset specifically right about this time? Well, actually, no. For the last year I have been trying to wrap my head around a missing piece. It’s a little bit of a digression because it’s going to tie in with the next pieces that we talk about. For the last year or two, I’ve been saying gold’s going to be reset, gold’s going to be revalued in different, in different volumes. You know, I wasn’t screaming at the top of my lungs, but I was thinking of a solution.

You may remember concepts like throwing it out on the yield curve, creating an asset backed bond. It started with, hey, Vince, do you think gold will go back, will go back on a gold standard? And I said, no, I don’t think so. I could be wrong, but I think it would be, I think it would be bad for the economy, speaking how the government thinks. I did say, however, that we need to remonetize assets. And by assets I meant gold. And a good way to do that would be to throw gold out on the yield curve.

Now this is something that I Talked about in 22 with Tom Luongo and a couple times here early on in, in gold fixes as we’ve really started getting going and, and then Judy Shelton came out of the woodwork, right? And she’s a person that was prominent and potentially prominent in Trump’s first administration. And she starts talking about it as well. Now I’m not pretending that there is an affiliation or connection there. We, we don’t know each other, which is good, you know, but she starts talking about it and then you have RFK talking about it. And all this conversation really is in some, you know, you have to tie in bitcoin with this because Bitcoin got people thinking about strategic Bitcoin reserve, monetizing existing assets.

So you know, the whole zeitgeist, the whole, the whole situation is changing. And that’s what Trump does. He, he, he doesn’t move the Overton window, he widens the Overton window. He blows up the Overton window, if you will. And, and that’s what happened. So I was struggling with one thing that I cared about deeply and that is I know as a trader, right, as a, as a, as an opportunistic, you know, lizard, I know that if you remonetize or revalue gold, I should say, or throw it, if you throw gold out on a yield curve, as Judy Shelton was saying, and I was saying in a different way, but we were essentially saying the same thing is you really risk destroying the dollar and Treasuries because if you’re going to compete with your own asset, with a new asset, you’re basically destroying the old asset.

It’s like new and improved Tide. So if you put it out there to monetize the asset, you’re essentially signaling to the rest of the world. If you like Treasuries, you’ll like gold backed Treasuries. So it’s the same concept. And, and to quote a founder, I’m just going to say his name, Tom. He’s an executive at a, at a, at a bank in 22 when I first floated this, or 23, I first floated this to him for a serious critique and his response to me was excuse my French here, it’s for effect. I have to, I have to quote the cursing.

Are you kidding me? With the United States? Why would the United States sell asset backed bonds? We hold on to our assets and as long as the world keeps buying our paper bonds, we’ll keep selling them. And I said, what about a downgrade? He goes, oh, we’ll sell more on a downgrade. So the conversation kind of like put a made me scratch a part of my brain. How would we monetize gold without damaging the dollar and bonds? So that’s brings us back to the timeline. So this, the 12th of February, you know, I was thinking about this.

It wasn’t consuming me, but I was thinking about it. There was an article by James Grant and the Interest Rate Observer. It wasn’t his headline piece, it was a second piece and it was entitled Dear Scott Beset. And it was probably less than 800 words, but it was, and it wasn’t even that dense, it was an easy read. But there was the answer the answer was, without getting into details, the answer was we’re going to monetize gold, we’re not going to sell gold, we’re not going to create gold bonds, we’re going to use the money that we get from the monetization of gold and buy back our bonds, kind of like half of a qe.

We’re going to create the money, we’re not going to print the money and we’re just going to buy back our bonds and boom. That was the answer. The answer is to make me feel comfortable with the idea of revaluing gold is that we will reduce our debt. And the reason I wouldn’t feel comfortable with revaluing the gold because if you look at what happened in 1973, we revalued the gold and we just spent the money. And if you just spend the money, it’s like giving your child, who’s asking for money money without giving any requirements of them to spend that money.

So they just spent the money. And I figured they would do that again. You know, it’s not to mention it is a one time event and if you do it, it’s like cracking the piggy bank if you spend the money on something you don’t need. So that was my concern all along. We sent an excerpt. If you’re wondering what founders get that’s different. Well they get a lot of things that different. I’m not upselling here. I just want to let you know what the mystery is. We sent an extended excerpt of section of Grants to the founders.

So they saw that article firsthand. The thing costs like, you know, thousand dollars a year to get. So we try and pick the good ones for you. Okay, so my problem is solved. But now we’re back on the timeline. So James Grant comes out with a piece on February 14th. Right. But it’s February 14th is when it’s dated and the volume gets louder. Right. We’re talking about it more. It’s like, it’s like, you know, the, the, it’s like a cauldron in social media and it’s splitting out to the, you know what I call the second tier press and that would be the YouTubers and what have you.

But back then, staying back to the timeline, February 12th bank and I didn’t see this until today, but February 12th bank of America put out a piece that I just sent out today. Right. Ultimately discussing the gold reset. Now obviously their clients are talking about it. You’ve heard me talk about this. Hartnett is good at taking the pulse of his Clients. I should note as a side note that Hartnett did not speak about gold at all in this week’s Flow show. And I took that to mean that he was less bullish. Reality of it is he was holding off because there’s more coming out.

Meaning the bank of America reports stating that we just sent out a breaking down of the potentiality of a reset for gold, had that piece embedded in it. There was a bigger piece about the monetization of US balance sheet assets in general. The 16th or the 15th, it may have happened. Zero Hedge, this is where it starts to really catch fire. All right, so Zero Hedge, seemingly very innocently, asks Elon Musk, hey, it would be a cool idea if Doge looked into the gold holdings in Fort Knox. And Elon Musk replied, as he will sometimes do to Zero Hedge, usually to comment or to add color.

But he replied in a very almost falsely naive way, considering what he knows about things in general. Saying that, saying, what do you say, hey, I thought that gold was audited every year, kind of like, you know, the way he does things. And that began a back and forth conversation that basically made the topic go viral on X, which prompted Zero Hedge to write a post about it, which prompted Rand Paul to weigh in and he says he wants to be a part of it if it happens. Let’s do what I think was his, was his phrase.

So, and there you have it within our little community, within our community meeting Zero Hedge Gold fix gold bugs on X Fin twit, I guess is what we used to call it. And people that are more Austrian than Keynesian, you have kind of like a critical mass, you have a cauldron boiling, you know, and, and this is where you could see the power of what we’re a part of. Now. If you’re a, if you’re A on X or, or understand how, or are looking at the demise of mainstream media and say, what’s coming next? Well, if you look at the structure of the media now, right, the media, the mainstream media, what I mean by, you know, the, the TV channels that you watch, it has always, I would say for the last 10 years, most obviously, right.

Been a megaphone for other people’s propaganda. Now it’s become obvious since Trump took office in 16, that they get a message and they go with it and they basically do what they’re told, even though they think they’re being, you know, quote, journalists. So they’re manipulated by powerful people. So that has continued to this day. And during Trump 2.0, the media is Kind of in transition ideologically. Some of them are attacking Trump because that’s what they do. They’re still representing, you know, the, the woke liberal ideology and some of them are reporting on Trump as factually as they can, but still spinning it.

That’ll be your Reuters and ap. You know, they’ll use words like destroyed rather than change. You know, they’ll take the negative spin. But the more conservative mainstream media is taking its cue, is getting its news from its readers who are also ex’s readers or X users. Right. So this is all tied into gold. What’s happening now? I want you to, I’m trying to make it clear of why it’s happening at this time. And Elon Musk and Donald Trump and even, you know, to a, to an extent, Zero Hedge are all working to make it happen. And you know where the foundation that it has been built on.

So social media. So we’re looking at the press here. Social media is the public forum that generates the grassroots ideas that are basically being pulled. Right. We’re a polling mechanism for the media. Oh, people are talking about this. You know, we are replacing Gallup Poll. Right. So the mainstream media wants to stay alive, right? Well, if it’s important to a million people on X and they’re talking about it and then you’ve got Elon Musk promoting it for his social media platform and also for the government work that he’s doing. And then you’ve got Donald Trump on his platform working with Elon on the Doge product project.

Well, you’ve got a critical mass for an idea. So the first mainstream media press to tap into that would be a Fox News, for example. And they are beginning to pick up on it. So they pick up on it and it becomes a non stop story and then eventually everyone has to cover it and they’ll spin it accordingly according to their management or their editorial bias. But it’s going to be talked about. They should begin to talk about it more now. Bloomberg and others have already talked about it indirectly, but it’s going to become, they’re dancing around it, if you know what I mean.

No one’s willing to do anything except acknowledge that people are talking about it. This, all of this right now, we’re going to tie it together. All of this of course is happening at the same time that the gold, EFP and gold deliveries to the US have increased significantly under the, in my opinion, under the auspices or under the pretense, I call it, of, of tariffs. Right. I mean I, I, I and other people that are actually in the industry. I have a professional relationship with people at Scottsdale, let’s put it that way, and, and other people too.

But I can say Scottsdale, that the US is not just repatriating gold, which is what I’ve contended, it’s. It wants it back on and that it just wants it back unencumbered. But it’s also possibly adding to its pile, which is also true. So that’s the story so far. Things are going to get a little bit more heady. You’re going to see a lot of, a lot more out there. You know, when you have an idea, when you have a meme, when you have something, when you have a conjecture or speculation, when you have something that’s caught fire and going viral, you tend to bring the grifters out.

So you think of the Anthony Pomplianos with bitcoin. Bitcoin can’t sue him. There’s no one to sue him. There’s no government protection. So he could say what he wanted. So the sensationalist journalism will get into it, you know, so the youtubers saying gold is going through infinity are coming out of the woodwork and it gets harder to determine what’s real versus what’s going forward. So for example, yesterday on Substack, someone asked me if Silver was made into a tier one asset as well. And the answer is no, it’s not. Could it be someday? Yeah. Will it be? Probably, Almost definitely.

Probably not. And that’s not a comment on Silver. It’s a comment on the fact that they don’t have enough of it. They only make tier one assets things that they have enough of. So we will. So speaking about our role up until now and our role going forward, we will try to remain true to what we’ve done on these topics and continue presenting what we do and how we do now. The volume, you know, we’re a one man shop. You’re actually one and a half man shop. And the volume of information and information coming has increased substantially and we’re also trading these markets.

So we will. This is not a, this is not a downgrade to your service. Okay? We will keep our comments to a minimum while things are going crazy and try and make ourselves more available in the substack chat which we’ve begun using. Frankly, it’s a nightmare to navigate. But look, it’s where people are that are serious about these topics are going and we’re going to go there more. That’s it. So as of right now, the questions that should come up, at least with us, is if this were to happen. So here’s like our list of questions that we’re looking for answers to as a trader and as an analyst.

But if this were to happen, what would happen to the price of gold publicly? What will be the price of gold that they revalue it at, and what would they use the funds for? These are logical, legitimate questions. So to ask any, whatever happens, a revaluation of gold is bullish for the price of gold in and of itself. And we can get into why, but the answer is if they reprice it to $2,000, that’s bullish for gold. It’s not extremely bullish for gold, it’s just a little bit bullish for gold. But it can be extremely. Because if we revalue it to $2,000, okay, then other central banks will revalue it higher.

And when you raise the floor on the value of it, you also make people think that it could be raised again or more. Whether it can be or not is not important. And so that will make them buy more. It’s like buying something undervalued, knowing that you’ll make money on it someday. And it will make people that are long physical gold even less likely to sell because it becomes worth more, not just as collateral, it becomes worth more as a, as a central bank asset. The real kicker for the price of gold, in my opinion is, and we wrote this about the two questions that you have to ask.

What will the price be? What will the price be reset to? Number one and number two, what will the use of funds be? The use of funds is key. If they take the money and say we’re just going to spend it on Porsches and Lamborghinis, well, that’s bullisher gold. Because that shows that they’re not learning from their mistake. They’ve taken the extra money from daddy, they’re spending the extra money, and you know they’re going to have to go back to it again. And that means gold gets revalued more. So as gold gets monetized and the money gets pissed away, instead of being fiscally responsible, that makes the price of gold go up again.

And that’s what happened in the 70s. See it quickly. In 1973, we revalued gold from 35 to 38 to 42, 22. And the price of gold chopped around. But it, it was in the process of going up a little bit. And then it kind of accelerated. And people will say, well, accelerated because we revalued it higher? No, it accelerated because we took the money and just wrote down our. We just took the money and added it to our spending. We reduced our deficit spending by saying, oh look, we reduced our deficit spending by $1.9 billion. But the reality is they just spent $1.9 billion more.

The reason gold went up is because the Y war happened, oil embargo, all these things and we just kept spending. We didn’t use the funds for anything responsible. So what they used the funds for makes all the difference. And that’s how every business is looked at when they’re raising capital. Which is why I think, speaking as a patriot and speaking as someone who wants the same things that Ron Paul wants, that the money should be used to reduce the debt. Because if you reduce the debt you get waves of, of what’s the word? Compounded benefits because you’re removing compounded interest Anyway.

If they were to just throwing it out there for you, if they were to reduce the debt with all the money, well, that would not be bullish gold. It certainly wouldn’t be bearish gold, but it would not be bullish gold because they’re reducing the debt with it. Bullish stocks. It would be massively bullish stocks. It would be zero hedge. Mentioning the report that we sent you guys by bank of America this morning describing how it would be a QE event. That’s an unlocked post by them. Basically you’re, you’re putting money on the balance sheet of the government and telling them they can spend it.

Well, it would be a QE event without QE is the expression that they said in the report that zero hedge locked in on rightly? Well, if you are buying your own bonds with the money, then it becomes like mega qe. Okay, so what are you going to do if bond rates go to zero? You’re going to buy stocks. You’re going to buy gold too. But it’s not like fear related for gold to rally under a situation like that. It’s more like everything goes up because we just reduced our debt substantially. And you know, gold, not as much.

I think I could be wrong about that last bar. Gold could just outright drop from it. You know the reason I don’t think it will drop is because they’ve just raised its value. It’s also very important how this is executed. Here’s $700 billion. Go spend it. Even if you’re spending it on something good, that’s a disaster. I see you coming. I’m going to buy every bond in the freaking world. Right? And and you would end up paying too high for the bonds. However, if they were to, say, put out a billion a month, you know, for 700 months, well, then you create a situation very, very similar to what Hamilton actually wanted to do in his sinking fund.

You don’t do it all at once. You don’t do it no matter what. You do it when you can and you do it in dribs and drabs. Hence the sinking fund concept. But those are bigger picture phenomena. What would happen if they were to revalue it? While you could, you could have a. Buy the rumor, sell the news immediately, but that’s pretty much it. That’s it for now. Hopefully this was helpful to you. You can refer to this or maybe we’ll, maybe we’ll write up something to make it kind of a, a summary. But we wanted to get this to you, all of you, so you could get an idea of what’s happened over the last 72, you know, to 144 hours regarding things to, to summarize again, there’s much bigger, much more cohesive talk about gold being revalued at a higher price.

We don’t know the price. We don’t know the use of the funds. If it were to happen. We do know it’s going to be tied to this sovereign wealth fund if it were to happen. Most banks are explained, not most. Some banks are explaining it now and saying the probability of it happening is very small and there are reasons we think are weak. It’s not orthodox. Well, what’s orthodox about Donald Trump? Bank of America said it’s unorthodox and unlikely to happen. I think their title is the risk of it happening is very low where the probability of it happening is very low.

What’s orthodox about what Donald Trump is doing? I think you have to start thinking about fat tails and not probabilities now. And this is a fat tail risk if you’re short gold. One thing that I didn’t really tie in together was if we’re going to have a sovereign wealth fund, if. Right. And we’re going to remonetize gold, what do you have to do? First, we’re going to revalue gold. Revaluing gold means changing its price on your books. Monetizing it means doing something with the money. Okay, those words are not the same thing. But in order to revalue the gold, before you remonetize the gold, you need an audit.

And that’s why the conversation that was kind of thrown back and forth in our little ex Twitter sphere is significant because Musk is a government employee in a sense, right? And Musk is saying hey let’s, let’s you know, he’s outsourcing it but he’s like hey, that’s not a bad idea. Let’s audit the Fed. Well you have to audit the Fed before you monetize an asset anyway. And so Musk, Besant, Trump and Zero Hedge as a publisher are facilitating a mainstream discussion about the gold in Fort Knox and our gold on our balance sheet in general. Have a good day.

Well, thanks for watching this morning’s Markets and Metals with Vince Lancy. We sure appreciate you tuning in and starting your day with us here. Hope you enjoyed the show and we’ll see you again next week. Please note that this video is not intended as legal license financial trading advice and is to be used for informational purposes only. Please contact your financial advisor before making any decisions. And thanks for watching.
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