Between Germany getting its gold back and Treasury Secretary Steve Mnuchin’s visit to Fort Knox, lots of “weirdness” is going on in the gold space, this according to best-selling author Jim Rickards.
“Last week featured two unusual stories on gold – one strange and the other truly weird,” Rickards, the author of the New York Times bestseller Currency Wars, said on Wednesday.
… “The answer may lie in the fact that the Treasury is running out of cash and could be broke by September 29 if Congress does not increase the debt ceiling by then. But the Treasury could get $355 billion in cash from thin air without increasing the debt simply by revaluing U.S. gold to a market price.”
U.S. gold is currently officially valued at $42.22 per ounce on the Treasury’s books versus a market price of $1,285 per ounce.
PG View: Revaluation of America’s gold reserves would result in a new “official” legitimacy to the yellow metal and would probably light a fire under the market.