‘Weird Gold Trick’ – Revaluation – May Not Be So Weird After All

May 11, 2023

by Chris Powell GATA.org

Dear Friend of GATA and Gold:

In his commentary yesterday at the Daily Reckoning, author and market analyst James G. Rickards described the “weird gold trick” by which the U.S. Treasury could conjure $500 billion from the Federal Reserve to help avert a debt ceiling shutdown. The “trick: is gold revaluation, official repricing of the U.S. gold reserve of 8,133 tonnes from the antique valuation of $42.22 per ounce to a market price of more than $2,000 per ounce.

Of course $500 billion might not buy the U.S. government more than a few weeks of pretend solvency against a shutdown imposed by the debt ceiling, but Rickards points out that the government has used gold revaluation in a pinch twice before.