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. revalues 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 last week?

The best-performing sectors included Information Technology, up 2.70 per cent, followed by Real Estate, up 1.82 per cent and Utilities, up 0.57 per cent. The worst performing sectors included Energy, down 4.45 per cent followed by Industrials, down 1.26 per cent and Consumer Discretionary, down 1.07 per cent.

The best performing stocks in the ASX top 100 included Evolution Mining, up 9.27 per cent, followed by Life360, up 7.99 per cent and Northern Star Resources, up 6.32 per cent. The worst-performing stocks included Pilbara Minerals, down 17.15 per cent, followed by IGO Limited, down 10.52 per cent and REA Group, down 6.01 per cent.

What's next for the Australian stock market?

The All-Ordinaries Index started last week under pressure as sellers took control early, but the buyers ultimately had the last word. A strong Friday rebound erased much of the damage, leaving the index slightly lower by the week’s close. 

Still, the growing presence of sellers is no surprise. We’ve been flagging September weakness for some time, and that outlook is now playing out. Even with buyers defending, any hesitation could see the index slip below 9,000, opening the way for 8,800 as the next key support level.

What makes this pullback notable is its character. There’s been no panic, no disorder, just steady, controlled price action. The sector performance highlights this. Materials, one of the market’s most volatile sectors, barely dipped, closing just 0.10% lower. Meanwhile, Financials managed to finish in positive territory. These measured moves reinforce the idea that this is a breather, not a breakdown.

A reversal from here could pave the way toward 9,400, but seasonality suggests caution. September has a history of weakness, and October tends to remain soft. Continue to plan for short-term pressure rather than expecting a sharp rebound like we saw in July and August. That said, conditions typically turn supportive once we enter November and December. With the added prospect of a November rate cut just before Christmas, the setup is in place for a strong year-end rally.

This pullback should be seen as an opportunity, not a threat. It’s the time to refine your watchlist, focus on quality laggards, and get positioned 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.

Disclaimer

This article contains general information and educational market commentary only. It does not take into account your objectives, financial situation or needs and should not be treated as personal financial advice or as a recommendation to buy, sell or hold any financial producct.

Any stocks, sectors, strategies, or market scenarios discussed are provided for educational purposes to illustrate the concepts covered in the article and should not be considered individual investment recommendations.