Why Gold and Silver Revaluation is Coming
Gold and Silver to Re-Take Their Proper Place in the Pantheon of Assets
Authored by GoldFix ZH Edit
Introduction
Silver is trading above Gold's valuation on the government's balance sheet. In the post Gold Revaluation Imminent? US Treasury Hoard Tops $1 Trillion For First Time, Zerohedge notes
"[T]he US Treasury's hoard of the barbarous relic has surpassed $1 trillion in value for the first time in history.
That is more than 90 times what's stated on the government's balance sheet and is reigniting speculation that Treasury Secretary Bessent could revalue (mark to market) the massive pile of precious metal
Insane right? When even Bloomberg is talking on it, you know the decision is being taken seriously. Here is why we believe it must and will happen
A decision has been made. The precise timing and place are unclear, but the outcome is evident: gold has been allowed to rise toward a valuation more consistent with monetary reality. This shift reflects both the expansion of money supply and the visible debasement of fiat currencies. What may sound improbable at first begins to make sense once the sequence of asset bubbles and policy choices is examined.
The Bubble Machine
Since the start of quantitative easing, the United States government and the Federal Reserve have operated what can best be described as a bubble machine. Liquidity has been directed into preferred assets—bonds, stocks, mortgages—while alternative channels were suppressed. Market structures were throttled, taxes and regulations discouraged ownership, and investors were punished for holding assets deemed undesirable.
“By a bubble machine, I mean they print the money they need to keep the assets they want inflated.”
This cycle has repeated for decades, most intensely since QE began. When the stock bubble collapsed in 2000, liquidity was pushed into housing. When housing collapsed in 2008, the next outlet became the Federal Reserve’s own balance sheet. That balance sheet is now effectively permanent.
Gold and Silver are Being Revalued
— VBL’s Ghost (@Sorenthek) September 29, 2025
0:00- Metals Will Be Revalued
07:09- Markets
08:18- MSA on Silver's New Price Reality
12:22- Data, Macro comment pic.twitter.com/CuR1O2THCx
From Real Estate to Digital Assets
After COVID, commercial real estate faltered, and the government moved quickly to stabilize the system. The Bank Term Funding Program was introduced, while the data center boom was accelerated through policy incentives. Government does not invent new ideas; it expedites those already in motion.
Bitcoin then emerged as the perfect sponge for excess liquidity. Marketed as “gold 2.0” and framed as an inflation hedge, it drew flows that could not be absorbed elsewhere. The deregulation of Bitcoin ETFs gave policymakers a degree of centralized control over what was once presented as decentralized.
Gold as the New Sponge
The unmistakable development now is that gold has been chosen as the next receptor for liquidity. Banks that once dismissed it have shifted tone. J.P. Morgan has published a $6,000 target, while Jefferies has gone further with $6,500. These calls are not accidents. They resemble the public promotion once undertaken by Bitcoin advocates.
“The government has lifted the lid off of gold to make it the permitted asset to hedge inflation.”
Why Now?
The decision reflects structural realities. The Federal Reserve’s balance sheet cannot be unwound. Stablecoins are not sufficient to absorb liquidity. Bitcoin is inadequate. Meanwhile, China and the BRICS have already moved to institutionalize gold within their monetary systems.
M2 Puts Gold at Approximately $12,000
“To reach 9.9 percent of disposable income per capita means gold should rise to US$6,571. But that ignores monetary measurements.”
By lifting the ceiling on gold, the United States acknowledges both its constraints and its competition. What follows is revaluation. Whether this is a race with China or simply an attempt to set terms, the result is the same: gold is being steered upward by design.
The Bubble We Need
Skepticism is natural. Some will argue that this is merely another bubble. In truth, It is a system (not ETFs) off ramp for those concerned. It is a way for capital to keep from fleeing the US if inflation upticks. It is required by the system at this stage. Liquidity must find a home, and gold has been re-designated as that home to do what it does best
“You want to call it a bubble? Its a safety valve because bubbles aren’t working”
Silver is trading at a higher level than Gold's price on US Government's balance sheet.
— Jordan Roy-Byrne CMT, MFTA ⛏⛏ (@TheDailyGold) September 29, 2025
Eventually, gold will correct. But not now. Now is the time to measure its potential against M2, against the monetary float, against capital that cannot be directed into Treasuries or equities. Those measures imply a valuation far beyond current levels, well above $10,000 per ounce.
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