On the U.S. government's books, gold is worth $42.22 an ounce.

That price was set in 1973.

Today, gold trades around $4,500.

That's a 113-to-1 gap between what the Treasury says its gold is worth… and what it's actually worth.

Treasury Secretary Scott Bessent has told us what he wants to do about it.

On the record, he said he intends to "monetize the asset side of the balance sheet."

That's not a throwaway line. It's a signal.

Because the easiest way to monetize that side of the ledger is to do one thing: Revalue the gold.

With a single decision, the government could mark up its reserves by more than $1 trillion overnight.

After 20 years studying gold and debt cycles, I can tell you what that kind of move really means.

A government doesn't revalue its gold when things are fine.

It does it when the other side of the balance sheet — the debt side — is in trouble. It's what you do when you need to signal strength to the world because the old source of strength is failing.

And every other signal is already flashing:

• Oil is settling in yuan through the Iranian toll booth in Hormuz.
• The petrodollar arrangement was cracking even before the war.
• Foreign demand for Treasuries is fading.

When a shift like this comes, it doesn't arrive gradually.

And when the government revalues gold to save itself, that's the moment you cannot own enough of it.

But do not run out and buy bullion at these prices.

Because certain miners offer far more asymmetric upside — the ones still priced as if gold were under $2,000 while it trades near all-time highs.

I call them the Golden Anomaly.

Go here for the four best-positioned picks before the revaluation.

To your wealth,

Garrett Goggin, CFA, CMT
Chief Analyst and Founder, Golden Portfolio

P.S. The Treasury carries its gold at $42 an ounce and the sitting Treasury Secretary wants to "monetize the asset side." Connect those two facts and you see what's coming. Go here to see the four miners positioned ahead of it.

Why China’s Memory Chip Breakthrough Won't Crash the Market

Authored by Jeffrey Neal Johnson. Published: 9/3/2026.

Investors watching the semiconductor sector are seeing headlines about China's latest breakthroughs in memory chips. ChangXin Memory Technologies (CXMT) recently began small-batch production of high-bandwidth memory and plans to mass-produce LPDDR6 silicon later this year.

At first glance, a localized Chinese supply chain producing some of the most constrained, high-margin components of the artificial intelligence (AI) hardware stack appears to be a devastating blow to Western memory giants. However, while increased domestic Chinese production represents a notable geopolitical shift, the sheer volume of global demand makes this new supply mathematically unlikely to trigger near-term margin compression for established market leaders. The structural shift from a cyclical commodity environment to a multiyear supply squeeze means legacy manufacturers remain highly insulated. Recent sell-offs offer an intriguing mispricing opportunity, as the world's thirst for computing power dramatically outpaces any single region's ability to manufacture it.

AI's Endless Thirst for Wafer Capacity

The semiconductor market has moved further away from its historical boom-and-bust commodity cycle. In the past, localized supply injections from state-backed competitors could flood the market, dilute pricing power and compress margins.

Today, the physical infrastructure required to support generative artificial intelligence changes the equation entirely. Developing advanced AI hardware requires approximately three times as much wafer capacity per chip as traditional dynamic random-access memory.

This dynamic creates a severe macro supply deficit. ChangXin Memory Technologies' achievement in LPDDR6 production and high-bandwidth memory (HBM) development is an impressive engineering feat that narrows part of China's technology gap, but it cannot bridge a global shortfall measured in millions of wafers.

The market is currently operating under severe capacity constraints. For the next several years, the primary challenge will not be finding buyers but finding enough cleanroom space and extreme ultraviolet lithography machines to fulfill existing orders. The global appetite for data processing is growing at a rate that completely dwarfs regional supply victories.

Why Micron Ignores Demand Destruction

When evaluating the immediate threat to Western suppliers, analyzing the order book provides more clarity than watching daily price action. Micron Technology (NASDAQ: MU) is a prime example of a business well insulated from near-term demand destruction. Micron Technology has experienced a pullback of more than 20% from its 52-week highs, yet the underlying business fundamentals reflect severe scarcity.

Micron Technology's high-bandwidth memory capacity, including its upcoming next-generation HBM4 architecture, is fully sold out through calendar 2026. These are not loose memorandums of understanding; they are binding, take-or-pay contracts. Forward pricing and volume are already secured through non-cancellable strategic agreements. This locked-in revenue pipeline provides unprecedented visibility, effectively insulating Micron Technology's projected gross margins from demand destruction in Asian markets.

Micron Technology currently boasts an impressive trailing 12-month net margin of around 55%. Even if Chinese smartphone manufacturers immediately transition to localized LPDDR6 for domestic handsets, Micron Technology does not have excess capacity sitting idle. Every wafer that rolls off the line is already spoken for by hyperscale data centers and major hardware developers building the next generation of computing clusters.

Western Digital's Brilliant Enterprise Pivot

A similar fundamental disconnect is visible with Western Digital (NASDAQ: WDC). Shares of Western Digital have dropped over 10% in recent weeks, with some investors pointing to insider sales as a sign of low confidence among executives. Zooming out reveals a completely different picture: Western Digital has aggressively restructured its operating model to capture the inelastic demand of the artificial intelligence era. The company has successfully pivoted away from the hypercompetitive consumer electronics sector. Today, enterprise and cloud operations account for nearly 89% of total revenue, leaving only a fraction exposed to volatile consumer client segments.

Against this backdrop, recent insider distributions at the executive level look more like standard portfolio rebalancing than a red flag regarding forward guidance. More importantly, Western Digital's enterprise hard disk drive capacity is largely allocated for calendar 2026, and management has executed long-term agreements with major cloud customers extending into 2028 and 2029.

This multiyear runway helps ensure that Western Digital's core revenue engine remains insulated from the volatility of the consumer-grade flash market, which localized Chinese production might theoretically disrupt. Data centers need physical storage at an unprecedented scale to house artificial intelligence training data, and Western Digital still holds the keys to a critical layer of that physical infrastructure.

Peak Cycle Pricing Meets Compressed Multiples

The current pricing environment creates a fascinating setup for fundamental analysts. Both Micron Technology and Western Digital are generating unusually strong profits. Western Digital recently posted anomalous trailing net margins nearing 73%, while Micron Technology has reached similar high-water marks. Yet forward valuations remain surprisingly compressed. Micron Technology trades at a forward price-to-earnings ratio of roughly 13, while Western Digital trades at around 23.

Investors often misinterpret the heavy capital expenditures required to fund next-generation fabrication plants as a long-term liability. In reality, current cash burn is a necessary prerequisite for fulfilling the enterprise orders already supported by customer commitments and visible demand.

Building out the infrastructure needed to produce high-bandwidth memory at scale requires substantial upfront investment, creating a natural economic moat against new entrants attempting to flood the market with cheap silicon. While China's localized supply chain victories will eventually absorb a portion of domestic smartphone demand, the global artificial intelligence infrastructure buildout gives peak-cycle pricing a stronger foundation than it would have in a normal memory upcycle. The structural supply constraints governing the industry are too vast for a single regional competitor to dismantle.

Capitalizing on Geopolitical Mispricing

Investors observing the recent sell-offs in legacy memory manufacturers might view the pullback as a mispricing driven by geopolitical headlines rather than deteriorating fundamentals. With capacity tight for years and profit margins shielded by long-term customer commitments, the underlying businesses are operating from a position of profound strength.

Those with a long-term horizon may want to add Micron Technology to their watchlists, as its forward valuation has compressed despite a much clearer revenue pipeline. Alternatively, cautious investors might wait for the broader market to absorb the reality of the artificial intelligence supply deficit before taking a position in enterprise-focused storage leaders such as Western Digital.

Recognizing the difference between a temporary headline shock and a structural shift in supply and demand is often where the most reliable market opportunities emerge. Keeping a close eye on these high-visibility revenue streams will provide a much clearer picture of future performance than reacting to overseas production announcements.