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| Money Metals News Alert | August 11, 2025 – Gold and silver prices rallied higher last week but have pulled back sharply this morning.
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Stocks also finished higher, bond prices ended slightly lower, and the dollar lost a bit of ground in foreign exchange markets.
The gold market was roiled by news of tariffs on gold imported from Switzerland, the world's largest hub for gold refining.
Officials with U.S. Customs ruled that bars imported by a firm in New York would be subject to a 39% tariff.
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COMEX contract prices for 1 kilo and 100 oz gold bars surged higher.
On Friday, though, futures prices reversed as the Trump administration suggested they will "clarify" that they actually DID NOT intend to implement tariffs on gold bars.
The retail bullion markets remain quiet in the U.S. More investors are selling with prices for both gold and silver hitting highs. Dealer inventories are full, and premiums are low.
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 | Gold : Silver Ratio (as of Friday's closing prices) – 88.5 to 1 | | |
Gold Revaluation & the
"Strategic Bitcoin Reserve" | | | |
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There are hints that at least a few within the federal government are toying with the idea of revaluing U.S. gold reserves.
The 261.5 million ounces of gold reportedly owned by the U.S. Treasury have been hold on the books at just $42.22/oz since the last time the value was adjusted in 1973. That gold represents only about $11 billion on the U.S. balance sheet.
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The U.S. Treasury could theoretically reap a cash windfall of upwards of $700 billion by assigning the current value to the reserves.
Upon revaluation, the Treasury Department would go to the Federal Reserve Bank and requests a credit against the Fed's gold certificates for the difference between the old value and the new value in U.S. dollars.
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Another plan currently in front of Congress is called the Bitcoin Act of 2025. It calls for the gold revaluation windfall to be used to buy Bitcoin and create a "Strategic Bitcoin Reserve." That would be a dangerous way to use the funds.
First off, it should be understood that revaluation is likely to be highly inflationary. The Fed could create up to three quarters of a trillion dollars with a few strokes on a keyboard.
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Dumping that largesse into the crypto markets will drive BTC higher. Then price inflation will ripple out into the broader markets and economy as some holders cash in on BTC gains and buy other assets, goods, and services. That will be bad news for the vast majority of citizens who do not hold Bitcoin.
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It will be difficult to avoid inflationary effects unless the Treasury revalues the gold without asking the Fed to credit it with new dollars.
In any event, the Treasury has no business speculating in crypto or any other markets. There is zero assurance that Bitcoin will succeed and gain widespread adoption and use as anything other than a speculative asset...
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| This week's Market Update was authored by Money Metals Director Clint Siegner. | | |
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