THE MARKET UPDATES

If that happens, risk assets will explode.

Let me explain how👇

The US Treasury owns about 261.5 million ounces of gold. But on official books, that gold is still valued at $42.22 per ounce, a price set in 1973.

On paper, this makes US gold reserves look worth only $11 billion.

In reality, gold is trading near $4,500 per ounce today. At current market prices, the same gold is worth over $1.17 trillion.

That is a hidden gap of more than $1 trillion sitting quietly on the US balance sheet.

This is basic math.

Why does this exist?

When the US left the gold standard in the early 1970s, the official gold price was frozen. Congress never updated it.

Most other countries value gold at market price.

The US does not.

That means the US is holding a massive unrealized gain that does not show up in headlines.

Why does this matter now?

US debt is over $37 trillion. Interest costs are exploding. Deficits are structural, not temporary.

At the same time, the US government is running out of easy tools.

- Raising taxes is politically not possible.
- Cutting spending is unrealistic.
- Issuing more debt pushes yields higher.

This is why the hidden gold value becomes important.

If the US ever decides to revalue its gold closer to market price, that $1+ trillion gap can be used to strengthen the Treasury balance sheet without issuing new debt.

This has happened before.

In 1972, the US revalued gold slightly and injected money directly into the system through the Treasury account.

No bonds.
No QE.
Just liquidity.

Today, the scale would be much larger.

At current prices near $4,500/oz, revaluing gold would instantly add over $1 trillion of usable balance sheet capacity.

That would act like stealth liquidity entering the system.

What would the market impact be?

First, it would be an admission that the dollar has lost purchasing power.
That alone is bullish for hard assets.

Gold would move first, because it is directly repriced.

Risk assets will follow.

More balance sheet room means more spending flexibility. More liquidity means higher asset prices over time.

Bitcoin benefits the most from this logic.

Gold revaluation tells the world one thing very clearly:
- Fiat currencies are being managed, not preserved.
- Bitcoin is the only major asset that sits outside that system.

That is why gold usually moves first.

Bitcoin follows once the signal becomes obvious.

The US is sitting on a $1 trillion+ hidden asset created by outdated accounting.

If this lever is ever pulled, it would quietly inject liquidity, weaken the dollar in real time and push hard assets higher

The physical market can no longer meet soaring demand.

Here is what is actually going on 👇

1. China is changing the rules.

Starting January 1, 2026, China will restrict silver exports.

To export silver, companies will now need government licenses.

Only large, state approved firms qualify:

- At least 80 tonnes of annual production
- Around $30 million in credit lines

This effectively blocks small and mid size exporters.

China controls roughly 60–70% of global silver supply. When China tightens exports, global supply drops immediately.

This is the same tactics China used with rare earth metals.

2. The silver market was already short supply.

Silver has been in a structural deficit for 5 straight years. That means demand is higher than supply every single year.

For 2025:

- Global demand: 1.24 billion ounces
- Global supply: 1.01 billion ounces

That is a gap of 100–250 million ounces. And this gap is expected to get worse after China’s export limits.

Mining supply is not growing:

Silver mining is mostly a by product of copper and zinc mining.

New mines take 10+ years to build, Ore quality is falling, Recycling is not enough to fill the gap.

There is no quick fix here.

3. Physical silver inventories are collapsing.

This is where it gets serious.

- COMEX inventories are down 70% since 2020
- London vaults are down 40%
- Shanghai inventories are at 10-year lows

At current demand, some regions hold only 30-45 days of usable silver.

This is why physical premiums are exploding.

In Shanghai:

- Physical silver trades at $80+/oz
- COMEX prices are much lower

This price gap means buyers are paying extra just to get real silver.

4. Paper silver is completely disconnected from reality.

There is an extreme imbalance between paper silver and real silver.

The paper to physical ratio is around 356:1.

That means:

- For every 1 ounce of real silver
- There are hundreds of paper claims

If even a small percentage of buyers ask for real delivery, the system breaks.

Markets understand this. That is why price moves are becoming vertical.

5. Industrial demand keeps rising.

Silver is not just a safe haven metal.

It is critical for:

- Solar panels
- Electric vehicles
- Electronics
- Medical devices

Industrial use now makes up 50-60% of total silver demand.

There is no substitute for silver in many of these uses.

Banks and institutions are reacting to:

- Supply limits
- Physical shortages
- Paper market risk

Silver is not rallying because of fear.

It is rallying because a real supply squeeze is playing out in real time.