“The State is, and always has been, the great single enemy of the human race, its liberty, happiness, and progress.”

—Murray Rothbard

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February 21, 2025 — Yeah, so… about that conversation we’ve been having on whether gold still matters in a world of central banks, digital currencies, and trillion-dollar bailouts…

Sit down and grab a good pour of Medoza’s finest Malbec.

The more I look into it, think about it… and correspond with readers, the more I realize we’re watching another chapter in the epic saga of monetary history – a drama unfolding right in front of us on social media sites.

And gold? Gold is playing the role it has played so well throughout human history. The barbarous metal is threatening to expose the scam of fiat money and government debt issuance, as is its wont.

Turns out, gold is not some relic people keep in the secret drawer underneath the French armoire, er I mean, basements. It’s still the ultimate insurance policy against government incompetence. And right now, Elon Musk, among other social media gadflies, is floating the idea of an audit of Fort Knox and revaluing the price of gold to paper over the government’s decades of moral egress and financial malfeasance.

First, a little trip down memory lane. This is where you need your glass of wine.

Back in 1933, when FDR realized the government was out of money and options, he did what any respectable leader would do—he stole from his own citizens. Under Executive Order 6102, Americans were forced to turn in their gold for $20.67 per ounce. Then, once the government had hoarded enough, with the Gold Reserve Act of 1934, the administration revalued gold to $35 per ounce—essentially devaluing the dollar overnight and handing themselves a tidy profit at everyone else’s expense.

Then, as soon as the Treasury had the loot, the Gold Reserve Act of 1934 revalued gold to $35 an ounce. Just like that, Washington had stolen 70% of gold’s true value from the people—one of the most brazen currency devaluations in history, disguised as economic “stabilization.”

Cue ominous music foreshadowing a significant plot development.

Then, fast-forward to 1944.

Weary of war, world governments trumped a new trick: the Bretton Woods system.

The world’s currencies were pegged to the dollar, and the dollar was supposedly pegged to gold. Sound familiar? It was just another confidence game.

Fast-forward again to the dawn of disco.

Washington, under Nixon, is at it again.

The post-WWII Bretton Woods system was designed to make the U.S. dollar “as good as gold,” with each dollar backed by an ounce of the real stuff. But, as usual, the government couldn’t resist printing money like crazy to fund wars, welfare, and whatever else seemed like a good idea at the time.

By the late ‘60s, Washington had printed so much cash for Vietnam, the Space Race, and the Great Society that foreign governments started calling their bluff.

Then French Minister of Finance, Valery d’Estaing Giscard, after chiding the U.S. for its “exorbitant privilege” of printing the world’s reserve currency, demanded France’s gold back, and soon others followed.

Nixon—never one to admit defeat—decided in 1971 to close the gold window entirely, making the dollar nothing more than a promise backed by, well… nothing.

Since then, we’ve been living in the age of the Great Pretend. The dollar isn’t backed by gold anymore, just the “full faith and credit” of a government that’s $34 trillion in debt. The Federal Reserve creates money out of thin air, Wall Street plays along, and inflation robs savers blind. Meanwhile, gold has gone from $35 an ounce to nearly$3,000.

That’s not just some coincidence. That’s gold quietly reminding everyone that the system is broken.

Recap: Trillions of paper dollars printed, debt soaring past $34 trillion, and inflation robbing the middle class blind. Gold going up… over 50% in 2024 alone.

With Trump in office and the nation’s first buddy riding shotgun at DOGE, the cracks are getting harder to hide.

Here’s something you won’t see on the evening news: the ticking time bomb of GLD, the world’s biggest gold ETF, is supposedly backed by vaults full of bullion.

But here’s the thing: If even a fraction of GLD holders decided they wanted real, physical gold instead of digital promises, we’d see a gold squeeze like never before. Physical gold would vanish overnight, prices would skyrocket, and the central banks—who’ve been hoarding gold for years—would have the last laugh.

Banks are literally flying tons of gold from London to New York to settle their contracts. Rather than taking losses on their paper gold bets, these financial institutions are opting to airlift bullion across the Atlantic because gold in New York is selling at a premium compared to London. It’s an arbitrage play, but it also tells us something important—real, physical gold is getting harder to come by.

In a plot twist worthy of a modern-day gold rush, tech mogul Elon Musk has turned his gaze from Mars to Fort Knox.

Recently, Musk, wielding his role in the Department of Government Efficiency (DOGE), has called for an audit of the U.S. gold reserves. His social media musings, coupled with support from Senator Rand Paul, have reignited debates about the transparency and security of the nation’s bullion stash.

Treasury Secretary Scott Bessent maintains that the gold is accounted for, citing regular audits.

Yet, Musk’s provocations have added fuel to the speculative fire, with some investors viewing this as a prelude to potential revaluation or even a return to the gold standard—a notion that sends shivers down the spines of modern economists.

Which brings me to the biggest “what if” of them all: What if the U.S. government revalues gold again?

Sounds crazy, right? But it’s not so far-fetched. The Treasury under Bessent claims to hold 261.5 million ounces of gold, and right now, it’s “officially” valued at a laughable $42.22 per ounce on the books. If they revalued gold to, say, $10,000 per ounce, that stash would suddenly be worth $2.6 trillion instead of a measly $11 billion.

Just like that, Washington could wipe out a big chunk of its debt without raising taxes or cutting spending.

I’ve been writing for years that the government wouldn’t or couldn’t pull a 1933 all over again. Now, I’m not so sure. I wouldn’t put it past this administration to announce in a late night Truth Social post that it’s a done deal.

A wild conspiracy theory? Probably not.

FDR entered the play into the books in 1933 and ‘34.

If history tells us anything, it’s that when the government runs out of tricks, they’ll rewrite the rules in their favor. Trump’s been in office for exactly 30 days. He’s already proven he’s got a good handle on the playbook – and rewriting the rules.

So what’s the takeaway? Same as always—don’t trust the system to play fair. Gold doesn’t care about politics, central bankers or DOGE. Gold doesn’t need bailouts, doesn’t default, and doesn’t care what Trump or Musk says. It’s been outlasting bad governments for centuries, and it’ll be standing long after this house of cards collapses.

Then, it’ll just cost you more to buy some.

Stay sharp,

Addison Wiggin,
Grey Swan

P.S. Grey Swan member Julia B., whom we cited in yesterday’s P.S., is a registered chartered market technician, or CMT. Ms B. adds:

I mostly use charts to trade, although I like to have a background view of the fundamental situation. In the 1980’s – 90’s I was the precious metals (futures oriented) analyst for AG Edwards and frequently saw the “fundamentals” validate measures the charts had already projected. These days my focus is on the stock market. I manage money for a few clients and lean towards a conservative strategy.

Revaluing the price of U.S. government gold seems too tempting and would be viewed as a painless way to improve the balance sheet and would probably be seen by the public as a common sense thing to do. The 1933 revaluation left a bad taste because they basically stole privately held gold before they revalued. On the WEF Great Reset, I think the base feels the tide has turned and we don’t have to worry about a Great Reset now. I fear it is merely on hold while they regroup or until Trump is out of office again.

At some point there will be a brake on the DOGE activities and a real audit of the gold reserves may be where it comes. There must be a reason the powers-that-be have successfully avoided a full audit since the 1950’s. The 1974 “audit” was a sham. The media focus is on Fort Knox, but the bulk of the gold is in NY where it is much easier to move gold in and out without publicity. We may find that the vault holds a lot of IOUs from other countries. If so, it would expose a massive short position in the global market.

Interest rates, in my view, are in a long-term, secular bull market and may trend higher for decades, but for this year will likely drift sideways to lower primarily on the hope brought about by the new administration. Rising rates eventually may become a futile attempt to support a weakening dollar as our government debt becomes even more unsustainable.

Send your comments to addison@greyswanfraternity.com. Thank you in advance.