Transcription
Hello everyone, welcome to Bald Guy Money. And this past week, Scott Bessant, who is the United States Treasury Secretary and responsible for managing, some might even say selling the country's nearly $40 trillion in debt with a vested interest in keeping the dollar attractive enough to make those sales, said this in an interview on CNBC.
"Dollar dominance is essential and everything President Trump is doing here is, you know, if you look uh the the the new Venezuela is going to is invoicing in dollars. They're coming back onto the dollar system. They've been sanctioned. They were not allowed to translate or to transact in dollars. And now uh dollar the dollar is going to be the centerpiece of their trade. We're seeing in the uh Iranian negotiations, the Iranians will be uh invoicing in dollars. So everything we are doing is pushing the dollar the back. It it's never left as the centerpiece for the global currency system, but we're reinforcing it. You know, I would anticipate uh when the Russia Ukraine conflict ends that Russia will want to come back in the dollar system. The great great thing about the United States is we we course correct when we go too far one way or the other. And I think we should not be the shy about flexing where we have advantages and where we have advantages share with our allies and push back the uh on those who they are are not aligned with us."
So, it's clear what he's talking about in this clip is a defense of the US dollar, taking action on a global scale to push back against challenges to its strength, as well as secure the dollar's dominance in the global marketplace, as it's still on at least one side of nearly 90% of global foreign exchange transactions, according to the Bank for International Settlements.
Now, this defense of the dollar, as I've said in past videos, started at the end of January 2026 as the US dollar was breaking a key support level on the DXY dollar index that usually separates dollar bull markets and bare markets. And this coincided with the announcement of Kevin Walsh as Jerome Powell's replacement at the Federal Reserve and the largest single day correction in gold and silver prices since the US dollar was taken off the gold standard in 1971, which any reasonable person could point to as a reason to stay away from gold and silver as they argue the stability they were sold on simply isn't there anymore.
So, in this video, I want to dive into this topic by looking at the mechanisms of this dollar defense, who and what I think the United States is defending against, and its longer-term impact on the gold and silver market. Once that's covered, I want to talk about gold revaluation, how it potentially fits into this narrative surrounding the defense of the US dollar. And we'll finish with a few words on portfolio management, which includes a free giveaway for all of my viewers all over the world that I think will help you balance the dangers of chaos in the financial system versus the manipulative pressures we're seeing in the markets right now.
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So to start, the first thing I want to do is to address the fact that the United States has attacked Iran once again after they accused Iran of hitting a cargo ship with a drone. And the attack was announced 1 hour after American markets closed on Friday. And as it has done since the start of the war, I suspect this could apply some downward pressure to the markets, including stocks as well as metals prices. And I want to wave the red flag of caution on that right from the very start for my Sunday morning viewers in order to set short-term expectations.
That said, it's hard to believe that things could get much worse for gold and silver after this past week, as gold temporarily fell below my price floor target from back in February. And silver has basically reached it, coming very close to $54.50 per ounce, which is a level I am on record saying there was only about a 10% chance of coming back to. So things look rough, at least over the short term, for metals. And although I haven't significantly changed my timelines yet, we will have to revisit the recoveries for gold and silver after July's Fed meeting if war related pressures on the metals persist.
Because parking Israel's interest in the war against Iran to the side, it's clear, at least based on Scott Besson's remarks on CNBC this past week, that there is an active defense of the US dollar happening right now, which in his own words is push back against entities that are not aligned with the USA as the United States, again, in Besson's own words, makes a course correction to rebuild confidence in the US dollar after seeing it nearly break key support at 96 on the DXY, driven in part by a record amount of capital outflows between 2023 and 2025.
And my regular viewers will know that I'm not one really to cry about manipulation. I'm not one to really talk about manipulation so much on this channel or to use it as an excuse for why things, at least over the short term, haven't panned out exactly as expected. And I'm not doing that. Now that said, and please hear me out before you burn me in the comments section, in a year when the United States has $10 trillion in debt to finance, 8 trillion of which is old debt being rolled over and 2 trillion is new debt being taken out. Any weakness in the US dollar relative to other currencies or its main competitor, gold, makes it much more difficult to attract the money needed to finance that debt.
Which if we come back to this image here showing more or less how much outside money is entering and exiting the US system. The defense that Scott Besson is mounting right now seems to be working as foreign inflows to US dollar investments, including US treasuries, rose by nearly 900 billion from May 2025 to the end of April 2026 with roughly 41% of that money, so $361 billion flowing in between February and April of this year as brokers at banks around the world start recommending short-term US debt to their VIP clients. And I say that because I got the same speech at my bank here in Poland just last Monday.
Now, you might be wondering how a guy like Scott Bessant would be so good at making the markets move in the direction he wants them to. And to some, what I'm saying probably sounds more like a whack job conspiracy theory. But for those of you who forgot or may not have known, Scott Besson worked for George Soros, including in 1992 when he played a key role in Soros's famous bet, some call it an attack, on the British pound leading to Black Wednesday, which tells us apart from knowing how to attack a currency, Bessant probably knows how to defend one as well. Which is why this narrative of manipulation started in the first place immediately following the late January metals correction as too many coincidences lined up all at once, namely a cascade of selling that started during US trading hours for gold and silver, the recovery of the dollar on the eve of a massive breakdown, and the announcement of Kevin Walsh as Jerome Powell's successor at the Federal Reserve, which was conveniently accompanied, as you'll all remember, mber by wall-to-wall media coverage calling WS a hawk.
And this is not to say that metals weren't overbought at that time and due for a correction. I said they were on January 25th. The video is still there and I even said from what levels they would likely correct from. But considering how all of these events conveniently lined up, the depth of the correction for metals, Besson's comments recently on CNBC and the suspicion that the scope of the manipulation has increased to now include interventions in the oil futures market to artificially keep the price of oil down. It's clear the United States isn't going to sit back and let China, who I suspect is taking its own actions behind the scenes against the US dollar, including being a major force in the movement towards gold as the de facto leader of the de-dollarization movement. The United States isn't going to let China destabilize their biggest weapon without a fight. That being, of course, the US dollar.
Because as we've seen in the conflicts against both Russia and Iran, the dollar and sanctions that go along with using the US dollar that you're subject to in this US dollar system and confiscations as well, let's not forget about what happened to Russia in 2022. These are powerful weapons that are being used in the 21st century that the United States simply doesn't want to give up. And looking forward to what comes next. I doubt this manipulative pressure on gold and silver coming from the side of the United States, specifically what Scott Bessant is doing behind the scenes to maintain confidence in the dollar. I doubt it is going to ease. And that's because on top of the $10 trillion in debt the United States is financing in 2026, there is another $11 trillion to finance in 2027. Suggesting the very fundamental thing that makes me most bullish on gold and silver, which is unsustainable US debt and the inflation associated with it, may also be its biggest short-term headwind. As Scott Bessant, who is likely pulling a lot of strings in this market, does the job he was hired to do, which is sell US debt.
And you may not like it. You may frustrate you, but there are no rules to this game. You can't call the police and have anyone investigated on this one. And we are going to revisit our timelines, of course, in July after the Fed's next meeting. But even if we have to lengthen our recovery timelines a bit, understand this. The game that is being played can't go on forever. In fact, January, what we saw in January was a preview of what can and will happen. And although we may have underestimated the government's ability to push back against rising metals prices and shore up support and confidence in the US dollar and force institutional money in a certain direction as they likely hang promises of deregulation over their heads. History shows that having some gold and silver in your portfolio is not only a fantastic way to increase your purchasing power over time, as I've demonstrated plenty of times right here on the channel, but that it's one of the few things that will keep you safe when somebody less competent than Scott Bessant gets the job under the next person and the fundamentals for gold and silver reassert themselves. And we'll talk about how to best structure your portfolio for when that day comes in a moment.
But just before we discuss gold revaluation and proper portfolio balance, I want to remind you all that owning land is another way to protect yourself from inflation and currency debasement while also being a very useful asset for preppers. And I say that as I give you all a small glimpse into what is happening on my own piece of land where I've got a small prepper cottage going up right now. And to those of you who have wanted to get some land for yourself but have had trouble getting started, please remember that channel partner Land of Land can help you get started easily and affordably. They have great properties with many starting right around $1,000. And their weekly auctions offer up fantastic deals on lots all across America. Buying is made easy and they even accept credit cards for payment for people looking to earn points on the purchase. So check them out at landofland.com or call them at the number on the screen and use code baldguy to get $300 off your purchase at landofland.com.
Now moving on to this video's viewer question. And remember I answer one viewer question, at least one in every single video I do. Please leave your questions in the comments section below. And you never know, your question may appear in my next video. And this week, I've selected two questions to appear in the video, as I think they're both related to the topic of manipulation and decisions being made behind the scenes that can positively or negatively impact the prices of gold and silver. And they come from friend of the show, Vienna Weiss. Hey, Vienna, I know you're watching. You're probably joining the live chat on Sunday. And Mark Holland who want to know what I make of possible clues being dropped by the US Mint about gold and silver revaluation as well as former Trump economic adviser Judy Shelton's prediction that the Trump administration may launch a gold backed bond on July 4th so American Independence Day of this year.
So jumping in, the topic of gold revaluation and a monetary reset is one that has been floating around for a while now. And the main argument being made for it is that the United States is coming to terms with the fact that central banks around the world, led by China, as I mentioned before, are turning away from the US dollar and turning towards gold. And it started in 2010 when central banks became net buyers of gold again and has really only accelerated since then as central banks spent more US dollars on gold in the first 3 months of 2026 than ever before. And with the US dollar, despite some of the recent volatility versus gold, consistently losing value against gold on a long-term basis, with gold outperforming even the S&P 500 with dividends factored in when measured from 2000. The idea is by revaluing gold to a certain level, the US debt, which seems unsustainable now, looks a whole lot better once it has that revalued gold backing it up.
That said, and as I've pointed out in past videos, the major problem with this idea is that there is no value you can assign to gold today that makes the US debt look sustainable for very long as to fully back US debt with the official gold reserves the United States claims to have that they've talked about auditing many times yet haven't gotten around to doing would have required a revaluation to about $90,000 an ounce as recently as 2020. With that number standing at $150,000 an ounce today. So, this is to say that it's not the price of gold that is the problem in this equation. It's the debt and a revaluation doesn't solve that fundamental issue. Especially when you consider the fact that the rest of the world doesn't have to play along with the revaluation as the gold market is a global market. With the consequence of this being if for example the US dollar is revalued versus gold that the US dollar itself simply gets revalued down versus all other currencies that already have an established price against the price of gold which is around $4,100 US an ounce today. And this would create a worldwide panic out of the dollar completely undoing everything that I explained Scott Bessant is currently trying to do to reinforce confidence in the US dollar.
So if you believe in the manipulation narrative, you must understand that it is at direct odds with the revaluation narrative. The United States cannot simultaneously want lower gold prices to make the dollar look good and higher gold prices to back the dollar. The two things just don't square. And I know some people have picked up on a narrative that the US Mint's Liberty products selling at $19,600 an ounce for the gold piece and $750 an ounce for the silver piece is a sign of the coming revaluation, which many are saying will happen on July 4th. That I'm calling BS and saying that this is a sign not that revaluation is coming but rather a sign that many collectors have very deep pockets and we are going to have that answer on July 4th which is less than a week away.
Now at the same time people are saying the mint is dropping clues about the revaluation. Others are pointing to the options market, saying that suspicious bets on gold reaching anywhere from $15,000 to $20,000 an ounce is another sign that big money knows something that we don't know. But the fact is, and this may be a little education for those of you who don't understand options very well, these are called out-of-the-money options. And they are placing low probability, high reward bets on the price of gold going much higher at amazing odds if they're right. But what's most important to understand about this is the price of gold doesn't even have to get that high for these people to make money because you can still make a great profit from where we are today if the price rises between now and when the options expire. Meaning that even if the price of gold goes back to $5,000 an ounce or even up to my next level target around $7,500 an ounce, these calls gain what is called delta value, allowing you to sell them for a gain before the options expire. So this is not a call on exactly that price.
Now I know there are some of you saying, okay, maybe there won't be a revaluation. But Judy Shelton has said that the United States may issue 50-year gold bonds on July 4th to help raise cash needed with a solid gold backing behind it, claiming that her experience as an adviser in Trump's administration gives her a little bit of credibility in this topic. And as this image here from my friend Eric Young, also known as King Kong on X, illustrates, there is a good argument to be made about why this would be beneficial for the United States to do. And although I suppose this will be another question that is answered within a week, know this. When Scott Bessant talks about people working against the United States and the US dollar, he is talking about China and to a lesser extent Russia in concert with China and their moves to convert people from the US dollar into gold, citing reasons of risk to get out of the dollar and into gold. And of course, they aren't alone as even US allies like Poland are stacking large amounts of gold.
But any recognition of gold, and I want to be clear about this, as a possible alternative to the US dollar by the United States itself, especially in the context of a long-term bond, which would basically be an admission that the US dollar doesn't hold its value over long periods of time, is an admission of the exact thing Scott Bessant is fighting against. So be skeptical of these narratives and understand that neither gold or silver need them to reach higher prices over the next two to 10 years in line with the road maps I presented in the month of June.
Now to finish after hopefully separating fact from fiction when it comes to manipulation and revaluation the last part of this video is a gift to all of you. Well, at least those of you who want it. Because in the past, I've taken criticism for not being bullish enough on gold and silver or not having enough exposure as today about 15% of my net worth is in precious metals. But lately, I've been told that I'm too bullish on metals or have advocated for people getting too much exposure to gold and silver, which they claim are now very volatile assets. And I suppose the crowds are never fully happy. But for those of you who have stuck with me here and listened to my slow and steady approach to buying precious metals in preparation for a better retirement, I want to make this file that is usually only available for my paid members available to all of you. It's in Excel format, so it's completely private and very easy to use on your own personal computer. All you have to do is go through the questionnaire, fill out the gray cells in the Excel with your monthly income data, your monthly expenses. You add your assets as well as your liabilities like any debt you may have. And the file gives you a complete breakdown of your financial fitness and portfolio structure. And that looks just like it does here in this example on the screen. So you can see where your money is and start setting goals on how to better spread it around to protect yourself from big corrections in stocks or metals if you happen to be overallocated but just don't know it yet. This type of tracking is crucial to do. And although it doesn't come with me as a personal consultant for free, I think the action of simply filling this out will open the eyes of a lot of people out there and help you balance your portfolio better and make sure you're ready with an adequate cash position for when opportunities arise on the market as well as an adequate metals position in case we hit the financial chaos that we all know is waiting for us around the corner. I am absolutely sure you will find this file useful. There are no strings attached to this at all. You don't have to give me any data. All you have to do is go to the link that I've provided in the pinned comment and video description below and download it. This is my way of saying thank you to all of you who have been coming here and watching me every week. So, I hope you all take advantage of it.
And with that said, that's all I have to say for this video. I'm wishing you all a fantastic week ahead. It is very very hot today in Poland. 37 degrees Celsius. I believe that's just slightly above 100 degrees Fahrenheit. So if you see me sweating a little bit, please forgive me. It is very hot today. But I'm wishing you all a fantastic week ahead. Stay cool. But of course, as I say at the end of all my videos, remember to take care of yourselves and take care of each other. See you all in the next video. Goodbye.