A look at the Gold and Silver Charts (21.08.2025)

© Hedgeye cartoon

Well, despite the torrential speculation of a revaluation of the gold price, MY AI says the following. Is it the smartest? Who knows?


What Does “Gold Price Revaluation” Mean?

A gold price revaluation refers to the adjustment of the official (accounting) value of national gold reserves to reflect current market prices. For instance, U.S. reserves are still recorded at about $42.22 per ounce, even though the actual market value exceeds $3,000 per ounce, resulting in a massive accounting gap DiscoveryAlertGoldSilverInvesting.comForbes.


What Do Analysts Say About Its Likelihood?
1. Speculative Signals and Analyst Commentary

Several media sources and market analysts have suggested that such a revaluation is being discussed in economic and policy circles. These include references in blogs, trading-focused sites, and interviews hinting at the potential for revaluation, especially amid growing sovereign debt concerns DiscoveryAlertITMTradingForbesGoldSilver. However, these are speculative interpretations, not formal predictions.

2. Timing and Political Economy Considerations

A more analytical take suggests that if such a revaluation were ever to occur in the U.S., the timing would likely align with political motivations—perhaps near the end of a presidential term (e.g., 2028) for short-term political gains. From this perspective, the prospect of it happening within the current year is considered quite low Investing.com.

3. Historical and Global Precedents

Revaluations are not unheard of in global central banking. In cases where countries hold gold reserves at historic cost, some have opted to revalue them closer to market rates, using the accounting gains to support government balance sheets—though often these moves were short-lived and didn’t resolve deeper fiscal issues Federal Reserve.


So What’s the Actual Probability?

There’s no publicly available quantitative estimate of the probability for a gold revaluation. Instead:

  • Speculative chatter exists, but lacks formal, data-driven probability models.
  • Experts note that political incentives make immediate revaluation unlikely—especially mid-term.
  • Historical patterns show occasional revaluations, but these are context-specific and not predictive.

Essentially, it’s more of a theoretical scenario—one that’s occasionally discussed but not widely quantified in probability terms.


Bottom Line
  • No official or widely accepted probability exists.
  • Discussions about a gold revaluation are speculative and often tied to fiscal and political motivations.
  • For the U.S., many analysts consider a near-term revaluation (this year or next) to be unlikely—with more plausible timing near future political cycles.
  • Historical precedent indicates revaluation is possible—but rare and typically short-lived.

My opinion: In this particular case I have made no alterations to Chat GPT. I agree that a revaluation is most unlikely. A one time revaluation to a significant enough number would be devastating to the dollar, (basically a devaluation of the dollar), perhaps we could see a revaluation to current levels, a drop in the ocean relative to the outstanding debt. 

Would the US want to bolster the value of its rivals’ gold holdings for control of world currency? Who holds the most gold? On the surface, China. Is the US sitting on massive holdings taken from previous wars, maybe gold hidden in the Grand Canyon, perhaps planeloads from the Vatican? Maybe they have an ace up their sleeves.

I do not see the US giving up its hegemony over currency control easily. The cost to the US citizen would be exorbitant.

  • Current debt $37.256 Trillion
  • Revalue to $3000 would make the debt $36.22 T
  • Revalue to $5000 would make the debt $35.70 T
  • Revalue to $10000 would make the debt $34.40 T

At $3,000/oz: accounting gain ≈ $0.77T (~2.6% of GDP). If fully used to retire debt, Debt/GDP improves from ~122% → 119%. Annual interest saved is $7.7B per 1% average coupon on the retired amount.

At $5,000/oz: gain ≈ $1.30T (~4.3% of GDP). Debt/GDP ~122% → 118%. Interest saved $13.0B per 1% coupon.

At $10,000/oz: gain ≈ $2.60T (~8.6% of GDP). Debt/GDP ~122% → 113%. Interest saved $26.0B per 1% coupon.

In all, an insignificant improvement with major ramifications for the US. Would I buy gold now? Yes. Would I expect a revaluation? No. Do I think it is a great way to preserve wealth? Yes. Who knows what the intentions of the powers that be are? Will we be informed? Unlikely.

I would love your feedback.

SELL: (20 June 2025). PLAT touched the Fibonacci retracement. It is bouncing off it. No buy signal yet.

SELL: (30 July 2025) URA. No buy signal yet.

URA global X Uranium ETF 2025-08-20

BUY Gold versus Bitcoin (19 August 2025). Gold outperforms Bitcoin.

$BTCUSD:$GOLD Bitcoin to US dollar/Gld CRYPT   20 August 2025

ETHUSD: SELL: (18 August 2025).

$ETHUSD Ethereum to US Dollar   20 August 2025

BTCUSD: SELL: 15 August 2025.  NASDAQ (Cyan).

$BTCUSD Bitcoin to US dollar CRYPT  20 August  2025

Gold stocks outperforming gold  (23 July 2025).  Gold stocks outperform gold. Looking oversold, turning.

$GOLD:GDX Gold - Contract (EOD)/VanEck  20 August 2025

Silver stocks outperform silver (1 August 2025). Looking oversold, turning.

$SILVER - SIL Silver- Continuous Contract (EOD) Global X Silver Miners ETF  20 August 2025

Silver to Gold Ratio

Silver outperforming Gold. (Signal given 13 August 2025)  When we think that silver is coming out of the ground at about 8:1 and the Gold:Silver ratio is 88.7, something is way out of kilter. Silver is an astounding buy at this time or gold is in for an extremely heavy correction.

$GOLD:$SILVER Gold Continuous Contract - (EOD) Silver - continuous    19 August 2025

USD outperforms Gold, (15 August 2025).

$GOLD:$USD Gold - Continuous Contract (EOD) CME    20 August 2025

TodayLast Week
Gold Price$3,341.00$3,337.00
Silver Price $37.90 $38.02
Gold:Silver ratio88.09:187.83:1
Gold Miners bullish percent index
I have never seen 100 previously, and I see this as a sign to close out or look for short gold trades. On the other hand, gold volatility is trading near lows around 15.00, which is usually a great time to enter gold trades.
100.00100.00
Dollar Index98.2597.86
Dow:Gold Ratio (BahaUS 44,731.00 Gold price, $3,341.00)13.3913.42
Current USA inflation rate (Dept. of Statistics)2.7%2.7%

Gold’s low of the week was $3,310.00 and the high was $3,358.00, now trading at around $3,340.00.

  • Gold Monthly:  is a hold. We bought in at $1,800.00 in October 2023.  Looking overbought, but it can hold that situation for a while. No sell signal yet. Rate of change has turned negative.  (Chart below).
  • Gold Weekly:  (SELL 12 May 2025)   The sell indicators were very early, but I see no signs of recovery at this point. We have mixed signals. The indicators are looking more negative. The weekly price is moving sideways with a small upward bias.
  • Gold Daily: (SELL 12 August 2025). Indicators appear to be turning up.

$GOLD Gold - Continuous Contract (EOD) CME0   20 August  2025

The low for Silver this week was $36.96 and the high $38.27, trading around 37.90 at present.

  • Silver Monthly: Hold. (Buy:  $24.00 March 2024). Looking overbought but positive flows of cash into the metal. ( Chart below).
  • Silver Weekly: (SELL 28 July 2025). Spike high still not eclipsed. Indicators turning up. Rate of change still negative.
  • Silver Daily: SELL (25 July 2025).  It looked like a buy signal was forming. It has since turned negative.

$SILVER Silver - Continuous Contract (EOD) CME   20 August  2025

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On the Stockcharts.com charts, the blue vertical lines are our proprietary system buy signals and the red vertical lines are system sell signals – for information purposes only

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This is my interpretation of the market and is not to be taken as financial advice. Before making any buy or sell decisions I recommend that you consult with your professional financial advisor.

Larry Simon
Larry Simon

Larry Simon was educated at the University of Witwatersrand, Johannesburg, South Africa and is an experienced businessman specialised in management, investment and finance.

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