What if gold is replaced by the US dollar's reserve standard? In this paper, our emerging markets bonds team values gold by matching central bank money liabilities to gold reserves, implying a 39,000 to a 184,000 per ounce metric. If they use central bank MO, which is just um money liabilities divided by gold reserves, $39,000 and this is Van fund. This isn't my number. uh if you take the M2 money supply and that is what I think is a a probably a better a better uh designation $184,000 gold and again this is VanX saying if


this were to happen this is what you would be looking at I'm not saying it's going to happen all I'm saying is and you know if you took M1 it's probably closer to $24,000 and that's James Rickard's number and it's ironic too do you know that in almost every central bank balance sheet gold is held in what is called the gold revaluation account. >> VanX emerging markets team has released a striking valuation model that reimagines the global financial system, projecting how dramatically gold could


be repriced if it were to fully replace the US dollar as the world's reserve currency. Andy Sheckchman, president of Miles Franklin Precious Metals, highlights the sheer scale of these projections. He explains that simply aligning global gold reserves with the M2 money supply would imply a price near $184,000 per ounce. Even under far more conservative assumptions, the numbers remain extraordinary. A valuation based on central bank liabilities relative to monetary base suggests gold around $39,000


while James Rickard's M1based model points to approximately $24,000 per ounce. Sheckchman cautions that these figures are not just academic exercises. Central banks already maintain gold revaluation accounts on their balance sheets, largely dormant mechanisms specifically designed to absorb a dramatic upward repricing of gold if needed. In his view, these accounts exist for one purpose, to restore solveny to the financial system in the event of a monetary reset. What makes this discussion urgent is that the


infrastructure for such a revaluation is already in place. Now, we present clips from Andy Sheckchman's interview. >> Judy Shelton comes on my show and she says, "Andy, in no uncertain terms, when I was on the when I was on the transition team, President Trump said to me, July 4th, 2026 is the biggest day of his presidency. It's the 250th anniversary of the country." And he will back the back end of the bond market with gold. Now, why would he do that? I'm going to put it all together for


you. You know, Ray Dalio just came out and said 60% of the United States has a literacy rate below the sixth grade. We're uneducated. $ 38 trillion debt plus 180 trillion in unfunded liabilities. Medicare, Medicaid, Social Security, government, military pensions. You know how long ago a trillion seconds was? 31,688 years ago. That's a trillion seconds. We're broke. We're insolvent. We're uneducated. We don't make anything anymore. Where's all our manufacturing? Triffin's dilemma through across the


globe, right? >> And guess what's coming around the corner? Mr. AI, that's going to kneecap not only entry level jobs. They say 50% of them within a few years. My son was an accountant for Price Waterhouse. He works here now. He was analyzing a balance sheet of real estate investment trust getting paid 80 grand. What do they need him for when AI can do it like that? All right. So, we're broke. We're insolvent. We're uneducated. And AI is going to hurt us, right? So, how do you bring back


manufacturing? Triffin's dilemma says, "Well, you can't if you're the reserve currency." Vice President Vance says, "We can't be the reserve currency anymore." So, what do they do? They create the stable coin act, suppress front short-term interest rates to create volume and and loans and whatnot. All of the proceeds go into gold, pushing the price higher, higher, higher, higher. The dollar goes lower, lower, lower, lower. We can pay off our debt. We can sell manufacturing to the


world. How do we get the manufacturing back? Ah, Judy Shelton says, "We'll peg a 5, 10, 20, 30, and even a 50-year bond." All of them accept the 30 and the 50, zero coupon, zero interest rate, redeemability in gold. The more stupid you are with fiscal policy, the higher the price of gold goes. But that's what they want because that devalues the dollar. James Rickards has been talking about uh I think he said $24,000 an ounce gold, but there was just a um there was just a report that was done by


I think I have it. Oh jeez, I should have had this sitting out there. Here it is right here. So there was a report done by Vanek Van Funds and it's titled if the dollar loses reserve status. Ironically enough I read it uh just the other day. It says, "What if gold is replaced blah blah blah?" And it says, uh, I'll just read what it says real here. What if gold is replaced by the US dollar's reserve standard? In this paper, our emerging markets bonds team values gold by matching central bank


money liabilities to gold reserves, implying a 39,000 to a 184,000 per ounce metric. If they use central bank MO, which is just um money liabilities divided by gold reserves, $39,000. And this is Vanek fund. This isn't my number. Uh if you take the M2 money supply, and that is what I think is a a probably a better a better uh designation, $184,000 gold. And again, this is VanX saying if this were to happen, this is what you would be looking at. I'm not saying it's going to happen. All I'm saying is, and


you know, if you took M1, it's probably closer to $24,000. And that's James Rickard's number. And it's ironic, too. Do you know that in almost every central bank balance sheet, gold is held in what is called the gold revaluation account? Now, could they just revalue it? Sure, why not? Uh Roosevelt did it in 33 and Nixon did it in 72 and 73. Gold was the gold window was shut at $35 an ounce in 71. He made it 38 and 72, which devalues a dollar and made at 4222 and 73 devalues a dollar where it stayed on the


books until today at 4222. Even if he marked it to market, he could do so because every $4,000 increase in the price of gold gives the Treasury Department 1 trillion free and clear. So you put you put gold at $184,000, you've just filled the Treasury with with reserves that they could pay off the debt, start doing things. In other words, I think they realize it. Look, the head of the Bundes Bank has been advocating for this, as has the head of the Dutch National Bank. Everyone has gold at at absurdly low levels, the way


it used to be prior to the Bre, you know, with the Brettton Woods agreement. And they all realize that that gold is an option to kind of balance the books and get things in order again. And who would it benefit? The majority of the central banks on the planet who've been buying at hand over fists since 2017. But I'll say it again, my mentor Richard Russell used to say years ago, the Fed is trapped. either they inflate or they default, which is the path that all central banks have taken. Maybe this is


option three, a soft default on the reserve status to give credibility to the bond market, which is really what's important because there's a waning demand for our treasuries to bring back manufacturing and just simply say thanks for the the fund, guys. We it was a real privilege to keep interest rates low and goods cheap and that's the benefit of being the world reserve currency but we've squandered it with our indebtedness and we're not in a good position financially or in terms of the


infrastructure of the country are are are we educated? Do we have savings? Um what about AI? All this stuff is against us if we don't throw a Hail Mary. Honestly, you know, I think the prospect for for the world our kids are growing up in is rather scary. The opportunities are disappearing into a wave of massive efficiency in AI and robotics at the expense of millions of jobs. It has to be done. Hit the subscribe button and stay updated.