America’s Trillion-Dollar Reserve

America’s soaring debt is a problem. With the country’s debt-to-GDP ratio now exceeding 120%, it is becoming imminent.

And this week’s episode of Government Shut Down theatre shows, once again, we’re politically incapable of even talking about it.

Critics argue we can’t look at America’s debt without considering its assets.

For example, the United States is the largest landholder in the country, owning over 70% of some Western states. And, thanks to gold’s surge over $3,800 per ounce this week, America’s gold reserves have now topped $1 trillion for the first time:

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The value of America’s gold holdings now exceeds $1 trillion (Source: Kobeissi Letter/X)

Of course, that gold remains unaudited in Fort Knox, the basement of the New York Federal Reserve Bank, and no doubt a few other more secret places.

Even at this price, $1 trillion is a fraction of the $37 trillion on the debt side of the government ledger.

And gold’s value isn’t necessarily rising – the dollar is collapsing, practically in real-time. Year-to-date, the U.S. dollar has declined by over 10% against other currencies. In crypto, that’s just a day of volatility. In the forex market, it’s an earthquake.

All things being equal, our forecast for the gold price remains intact.

As is our forecast for a terrifying bull market. Gold is just one asset of many rising during the Trump era grand realignment of the geopolitical and global monetary systems.

We’ll concede to gold’s critics that it’s an inert metal that just sits there, generating no income. But, as such, it’s also the perfect barometer for the health of the fiat monetary system.

Judging by gold’s massive rally the past few years – and the fact that it’s outperformed the S&P 500 century-to-date, sometimes being in the right place and doing nothing is the right move.

~ Addison

P.S. Our forecast for significantly higher gold prices continues to move in the right direction. We’ll also note that even if gold reaches our price target, it wouldn’t be nearly enough to pay off the national debt.

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.

America’s soaring debt is a problem. With the country’s debt-to-GDP ratio now exceeding 120%, it is becoming imminent.

And this week’s episode of Government Shut Down theatre shows, once again, we’re politically incapable of even talking about it.

Critics argue we can’t look at America’s debt without considering its assets.

Turn Your Images On

The value of America’s gold holdings now exceeds $1 trillion (Source: Kobeissi Letter/X)

Of course, that gold remains unaudited in Fort Knox, the basement of the New York Federal Reserve Bank, and no doubt a few other more secret places.

Even at this price, $1 trillion is a fraction of the $37 trillion on the debt side of the government ledger.

All things being equal, our forecast for the gold price remains intact.

As is our forecast for a terrifying bull market. Gold is just one asset of many rising during the Trump era grand realignment of the geopolitical and global monetary systems.

We’ll concede to gold’s critics that it’s an inert metal that just sits there, generating no income. But, as such, it’s also the perfect barometer for the health of the fiat monetary system.

Judging by gold’s massive rally the past few years – and the fact that it’s outperformed the S&P 500 century-to-date, sometimes being in the right place and doing nothing is the right move.

~ Addison

If you have any questions for us about the market, send them our way now to: feedback@greyswanfraternity.com.

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Gold has been consolidating after a powerful multiyear rally. Yet with America’s gold reserves equal to only about 3% of federal debt, the metal could still have significant upside ahead.

The Federal Reserve can print money, but it can’t print oil. As energy prices surge and supply disruptions loom, the central bank may find itself with limited tools to fight inflation driven by real-world shortages.

The plan to release 172 million barrels from the Strategic Petroleum Reserve would leave the U.S. with its smallest stockpile of emergency oil in more than four decades. And with tensions simmering globally, the shrinking reserve raises uncomfortable questions about how prepared the U.S. is for the next supply disruption…

Gold has been consolidating after a powerful multiyear rally. Yet with America’s gold reserves equal to only about 3% of federal debt, the metal could still have significant upside ahead.