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Money Metals News Alert
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August 18th, 2025
– Gold and silver prices ended the week lower on Friday. More weakness in
the U.S. dollar didn???t produce much buying in precious metals futures.
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The Federal Reserve Note
???dollar??? ended back below 98 on the DXY index, the lowest level in more than three
years.
Stock prices finished the
week higher and while bond prices fell slightly. The 10-year Treasury yield rose
back above 4.3%.
The retail bullion markets
continue to be quiet with buyers and sellers in roughly equal measure.
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This market is especially difficult
for mints and refiners. Demand for new minted products is low as there are plenty
of resale bars and rounds available.
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Gold : Silver Ratio (as of
Friday's closing prices) – 87.7 to
1
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FUNNY MONEY: Gold Revaluation, Bitcoin Reserve,
and Other Shell Games
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Rumors of gold revaluation have been
in the news lately. One thing is clear. Politicians have no interest in using the
nation???s gold reserves for anything like the original purpose.
Americans get smoke and mirrors
instead. Officials may like to point to the large reserves and talk about the
confidence all that gold inspires.
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They just don???t want to
impose any restraint on their ability to borrow and spend.
Nobody in Washington is
talking about making the Federal Reserve Note back into genuine dollars which are
redeemable for gold or silver. The likely result of any revaluation will be a
weaker money, not stronger.
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One proposal is to use freshly minted
dollars to create a ???Strategic Bitcoin Reserve.???
Fans and speculators were hoping the
federal government would wade into the Bitcoin market with nearly three-quarters
of a trillion dollars to spend – driving up prices and bestowing the
cryptocurrency with legitimacy as a ???reserve??? asset.
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Treasury Secretary Scott
Bessent threw cold water on that idea last week. Some in the Bitcoin community
felt betrayed. Candidate Trump had announced his intention to create a reserve at
the Nashville Bitcoin Conference in July 2024.
Bessent floated a
different idea in February. He suggested the government could ???monetize the asset
side of the U.S. balance sheet.???
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Some speculated that meant the U.S.
might create a windfall of dollars by formally revaluing the gold reserves which
are currently held on the books at $42.22 per ounce.
Nations like Norway and Saudi Arabia
are creating sovereign wealth funds. Public money is invested in stocks of
publicly traded companies, oil fields, real estate and other assets.
Last week, Trump administration
officials suggested the U.S. government may take a direct stake in chipmaker
Intel, where share prices have floundered for years.
There is no question such a move would
be wonderful for prices in whichever assets officials decide to buy. There are,
however, plenty of questions as to whether bureaucrats and politicians should be
picking winners and losers.
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Meanwhile, the Treasury
has the ability to assign any value they want to the nation???s gold reserves. The
value is currently set at $42.22/oz – about 1/80th gold???s current value.
They could just as easily
set the value of the gold at $275,000/oz – roughly 80 times the current
value – although this would mean little unless the Treasury transacted using
this number or forced the Fed to issue more Federal Reserve Notes in connection
with the U.S. gold certificates it holds.
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The total Federal Reserve Note value
of the gold would suddenly be north of $40 trillion, more than what is needed to
retire the entire national debt.
That won???t happen. Why? Because it
puts a spotlight on the real problem.
The value of the gold doesn???t go up...
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Rather, the value of the
money collapses.
A few years back far-left
politicians proposed minting platinum coins each with a face value of $1 Trillion
which the Treasury would exchange at the Fed to help pay off debt or finance the
deficit.
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It???s only a matter of time before the
public recognizes the sham that is our current monetary system.
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This week's Market Update was
authored by Money Metals Director Clint Siegner.
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