Gold Revaluation Speculation

Since February, there has been speculation that the U.S. government might be planning a revaluation or remonetization of its gold hoard. These theories have been popping up again over the past few weeks, so here's an update.

Historical Discussions on Gold Price Revaluation

These weekly columns have been used to address this revaluation idea, and a quick check of the Sprott Money archives yields several results. Here's a link to just one, written about a month after U.S. President Trump took office. Could this gold revaluation be used as part of a plan to issue gold-backed treasuries? Here's Trump associate and one-time Fed nominee Judy Shelton:

Steve Forbes Advocates for Gold Standard Return

Here's publisher and former presidential candidate Steve Forbes with similar ideas. And there's also talk that the U.S. might simply revalue its gold stocks for the purpose of making the total outstanding debt seem more palatable.

Of course, all of this is dependent upon the idea that the U.S. actually still holds all of the gold that it claims to have. Do you remember the discussion of "auditing Fort Knox" from earlier this year? Even Trump got in on the act. In February of 2025, Trump repeatedly vowed to audit Fort Knox. He made statements on Air Force One and during speeches. Elon Musk called for a livestream. By March, both men went silent. The narrative was shut down at the highest level, with no follow-up.

Audit Fort Knox Movement Fizzles Out

But then, just as quickly as it came up, the idea of auditing Fort Knox went away. There are still random tweets from commentators and congressmen, but nothing more from Trump or his staff.

In summary, all of the news this year on this subject has pointed toward some sort of eventual revaluation and remonetization of gold. However, how in the heck is that possible if the U.S. dodges any sort of "audit" of its gold reserves? Could the U.S. revalue its gold to, say, $20,000/ounce without offering proof of its existence? Of course it could! The markets swallow hook, line, and sinker all of the other "official" U.S. government proclamations. Why wouldn't they generally accept the gold data without proof of ownership or provenance?

Impact of Gold Revaluation on Gold Prices

A bigger question for gold investors: How would a gold revaluation impact price? Just because the U.S. decides to carry its gold at $20,000/ounce does not mean that the actual market price becomes $20,000/ounce. Like your house, your gold is worth whatever someone is willing to pay you for it. So would the gold price become $20,000 overnight if the U.S. government officially revalues its reserves to that level? Probably not.

Long-Term Outlook for Gold Investors in 2025

But we'll see about all of this and continue to monitor the situation through the remainder of the year. Officially revaluing the gold price certainly seems like an easy option for creating the cash needed to fund the Bitcoin Reserve or Sovereign Wealth Fund, and by now you've learned that politicians can usually be counted on to take the simplest path forward.

How this might impact price in the short term is uncertain, but it would seem quite likely that any sort of gold remonetization would have a beneficial long-term impact for gold investors.

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