betterinvestmentthanshare
Well-Known Member
Straight from the horse’s mouth
So there you have it.
NOPE
So there you have it.
NOPE
USA Revaluation of Gold
- Thread starter betterinvestmentthanshare
- Start date
And watch the back flip in days to come.
My thoughts exactly!
Yes.
(grok)
Bessent said this on March 18, 2025, during an appearance on the All-In Podcast (the "All-In DC" episode).
This was in response to speculation that his earlier comments about “mobilizing the asset side of the balance sheet” (in the context of a potential sovereign wealth fund) meant revaluing U.S. gold reserves (currently carried at the statutory $42.22/oz price).
Bessent has made similar clarifying statements in other interviews since early 2025 (e.g., Bloomberg in February 2025). Gold has roughly doubled in price since then, but Bessent’s position on official revaluation has stayed consistent in public remarks.
Why? The government doesn't need it, it currently has an endless supply of funds at its disposal and the balance sheet never has to balance.
Bessent is probably approaching it from the angle that a revaluation of gold would create too much instability in financial markets as commercial entities and pension funds for example holding or exposed to the gold market would find their balance sheets under pressure necessitating forced sales and re-alignments.
Historical precedent.
Regardless whether the USA can print to oblivion or not, the time is fast approaching when they will IMHO, not be the world’s reserve currency.
Whilst I stand to be corrected, I believe the timeline will be measured in single digit years and not decades. Time will tell.
Gold is doing just fine on its own anyway.
Its not like they would revalue any more than todays price is so it doesnt even matter.
Its not like they would revalue any more than todays price is so it doesnt even matter.
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I'm not on that train with you mate.
There's about 8 or 9 reserve currencies with the US making up the largest percentage held in reserves because they have the largest economy of all of the countries and it's fairly stable, which is remarkable when you think about how fkd-up crazy some Americans are.
mal
Member
This subject is above my pay grade. Would it still be the largest held in reserve if it was not used for international settlement for oil etc. ( petro dollar comes to mind) if it was never used/forced for settlement what percentage do you think it would be. I'm guessing if it was never in a dominant position for international settlement the us economy would not have grown the way it has, and maybe some of the past conflicts would not have proceeded the way they did. I assume this is one reason there is so much push back on BRICS
I'd say it goes hand-in-hand, but the status of the US would've determined it being the pre-eminant currency of choice.
I'm a novice in this area too but if you look at when and why the USD became the major global reserve currency it explains the other side of the picture. The Sterling couldn't retain its status because Britain a didn't have enough gold to back it after being ravaged by two world wars, Japan and Germany were on life-support systems, the USSR and China were a nation of peasants digging in the mud ruled by murderous authoritarians and the list goes on.
It would've been been shit times for most of the world's population so the US economy, national strength and stability and currency would've stood out as the only realistic alternative to the Sterling.
So if there was going to be a challenger (or collection of challengers) to the USD it would have to tick a mighty amount of boxes to be a viable alternative.