America’s Dirty Secret: Could Gold Really Soar to $15,000?

What if I told you there’s a dirty little secret sitting on America’s balance sheet? One that could turn the global financial system upside down overnight. A secret so powerful it could erase trillions in debt with the stroke of a pen. It’s not a conspiracy theory. It’s history, and it’s been used before.

Back in 1934, President Roosevelt pulled off one of the boldest financial moves in history. He revalued gold from $20 to $35 an ounce, instantly devaluing the U.S. dollar by 41 per cent and creating a windfall for the government out of thin air. Ordinary Americans had no say. Their savings were worth less, while Washington walked away stronger.

Will the U.S. revalue gold to slash their debt?

Fast-forward to today, the U.S. national debt has exploded past $37 trillion, and interest payments are crushing the budget. While behind closed doors, whispers are growing that Washington could reach for the same trick again.

Now, here’s the secret: the U.S still values its 261 million ounces of gold at just $42 an ounce, which is a number frozen in time since the 1970s. On paper, it’s worth barely $11 billion. But if they revalued gold to $15,000 an ounce? Suddenly, Treasury conjures up nearly $4 trillion to slash its debt without raising a single tax. No new borrowing, just an accounting sleight of hand.

Unfair? Absolutely. Impossible? Not at all.

Why you should care if the U.S. revalue gold

If the U.S. makes this move, gold and silver will surge globally. For Australia, that could mean the share prices for gold miners like Newmont, Northern Star, and Evolution Mining could take off like a rocket.

But it won’t stop there. A revaluation would ripple through your superannuation, savings, and retirement nest egg. Gold is the ultimate hedge against financial chaos, and chaos is exactly what this would unleash. So, the choice is simple: do you prepare now, or do you risk waking up one morning to find the financial system flipped on its head?

Because history shows one thing: when governments are desperate, they don’t play fair and right now, desperation is written all over America’s balance sheet.

What are the best and worst-performing sectors this week?

The best-performing sectors include Information Technology, up over two per cent, followed by Utilities and Real Estate, both up over half a per cent. The worst performing sectors include Energy, down over two per cent, followed by Materials, down over one and a half per cent and Healthcare, down under one and a half per cent.

The best performing stocks in the ASX top 100 include Evolution Mining, up over seven per cent, followed by Life360, up over five per cent and NEXTDC Limited, up over four per cent. The worst-performing stocks include Pilbara Minerals, down over 17 per cent, followed by IGO Limited, down over 12 per cent and Metcash Limited, down over five per cent.

What's next for the Australian stock market?

The All-Ordinaries Index has slipped just under one per cent so far this week as sellers gained the upper hand. But this isn’t a surprise. We’ve been flagging September weakness for some time, and that outlook is unfolding right now. With the way selling has played out, it’s likely that the 9,000 level will eventually give way, which would put 8,800 firmly in focus as the next major support.

What’s notable about this pullback is the absence of panic. Price action has been steady, orderly, and far from volatile. The sector breakdown reinforces this point. Energy was the week’s worst performer, down a little over two per cent, which is hardly dramatic for one of the market’s most volatile sectors. Materials followed with a modest one-and-a-half per cent dip. These moves are small for traditionally high volatility sectors, underscoring that the market is simply taking a breather, not breaking down.

Of course, a reversal up from here could open the door to a push back towards 9,400, although that feels like a stretch in the short term. Seasonally, October tends to remain soft and not as heavy as September, before November and December typically deliver renewed strength. Factor in the prospect of a November rate cut landing just before Christmas, and the setup is there for a strong finish to the year.

For now, this pullback should be viewed as an opportunity, not a threat. It’s the time to build your watchlist, line up quality laggards, and position for the next leg higher.

For now, good luck and good trading.

Dale Gillham is the Chief Analyst at Wealth Within and the international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of the award-winning book Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in all good bookstores and online at www.wealthwithin.com.au