That’s when you have a gold run or a run on the bank. And that’s what could be—I want to use the word could, not would—taking place right now,” says David Morgan, publisher of The Morgan Report. In an interview with Daniela Cambone, he compares the recent gold supply crunch in London, much of which was triggered by tariff threats as investors bought cheaper gold in London and sold it for a higher price in New York, to a traditional bank run. “Some gold holders started to wake up and say, wait a minute, there are delays in the LBMA. There shouldn’t be, or at least not that long. I’m going to get my gold back.” Additionally, he states that some of the gold stored in Fort Knox was coin melt, meaning it was taken from gold coins, which are typically made of 90% gold, not pure gold. “For a gold contract to be valid, it has to be 999 fine. In other words, it’s just gold, it’s not gold and another metal.

TRANSCRIPT FROM VIDEO:

00:00
I know you’re all feeling it. There is so much happening in the gold market right now. We talk of revaluations, uncertainty, shifting trends, even talk about auditing Fort Knox. It almost feels as if something big is really coming. So if you have questions or concerns about how this could impact you, reach out to our team. It’s free and they’ll be happy to explain the situation and help you out and prepare. So scan the QR code right here on the screen or there’s a link below in the video description.

00:29
Now let’s get to today’s video. Everyone’s talking about the revaluation of gold, but David Morgan says gold doesn’t need to be revalued. It’s the constant. We’re going to find out more from him right now of what he means by that. David, welcome back to the show. Always good to see you. Oh, Daniela. Thanks for having me back. Appreciate it. Look, I don’t think I remember the last time gold’s been so much in the news.

00:55
David, and it’s not just the price action that we’re seeing, obviously, talk of auditing Fort Knox, revaluing gold. So I want to try and cover all this with you today. Let’s start with this talk of revaluing the yellow metal. For folks new to this concept, what does that entail? What does it really mean when we talk about the revaluation of gold? It’s pretty simple. There’s an official price of gold that the Treasury uses.

01:22
which is $42.22 per ounce. And then there is the market price of gold, which Kitco and ITM trading and all kinds of places, the COMEX, publishes what the daily fluctuations in the gold price is. And right now it’s roughly $2,950 per troy ounce of gold. So there’s the market price and there’s the official price.

01:51
So the revaluation, gold’s a constant. An ounce of gold is an ounce of gold anywhere in the universe. So what changes? It’s the paper that changes. How much paper’s been printed during a given timeframe. In other words, when gold was at $35 a ounce, what was revalued at $42.22, how much gold was there versus how much paper was backing it or how much gold was backing the paper. So right now, we’ve been off the gold standard or dollar standard tied to gold.

02:20
from August 15th, 71. And in that time, there’s been massive amounts of increase in the currency supply. And so now the market says it’s $2,950 US, 4,000 Canadian, whatever it is in other currencies. So obviously the market’s telling us there’s been a massive amount of currency produced in those 50 plus years. Now what’s happening is the United States at the financial level, Treasury,

02:50
Fed, whatever is talking about, about revaluing the currency to match the market price of gold. And if that were to occur, the would be a massive increase. You take, you know, 42 and divide it into 2900. That’s a pretty big multiple. And so that would bring the gold balance in today’s terms in fiat to about rounding up about $800 billion.

03:17
So $800 billion is certainly enough for me to get by for a few years. But in terms of how much debt we have, which current account deficits, 36 trillion, if you round up to 800 billion to 1 trillion, you rounded up even further, that’s only one 36th of the debt. So it really doesn’t do a lot to help the balance of our debt situation. Now it could help.

03:47
of, you know, readjust people’s thinking, bringing gold into the monetary sphere, bringing some stability. And I interviewed Dr. Judy Sheldon some time ago, as good as gold, her book about how to put gold back in the monetary system. And that’s basically using it as a tie to issuing United States treasuries, especially the long bond, or we might even go 50, maybe 100 years. My words, not hers exactly, but the concept, which I think is a pretty sound concept to try to put some stability.

04:18
back into the monetary system. So hopefully you didn’t over-answer the question, but it’s to bring the balance sheet of the United States into a better position, which it would. But when you measure it against the amount of debt outstanding, it’s really not that significant. So let me ask you, in your opinion, what is the likelihood this is gonna happen? I think it’s unlikely. I think we’re going to do some audits. We can talk about that in a moment.

04:47
But the secretary of treasury basically said that it was misunderstood and that he’s looking at Goldmore as a sovereign wealth fund type of situation rather than a revaluation to the balance sheet of the United States. So I think that’s a much more likely situation than what some people already talked about. Because that would mean, just break it down for us, for us gold holders, all of a sudden our wealth would be how much bigger?

05:17
It wouldn’t be if we mark to market, our wealth would be at the spot price of gold, 2950 today. And so it would just change the balance sheet. It changed a date of entry in the books of the United States is what we do now. If the United States decided that they were not going to mark to market and they decided that gold should be paid at $5,000 the ounce and at that.

05:44
we’re going to issue bonds and we’re going to do some monetary manipulations, then obviously, goldholders like you and I and many of people that follow what we do, that would be significant to them, percentage-wise. But that’s not what they’re talking about. I mean, maybe in the back room behind closed doors, I don’t know. But as far as what they’ve put out publicly, it’s just a mark to market, which doesn’t change anything for us because…

06:13
any day we decide to buy and sell gold, it’s basis, whatever that daily’s price is. And we get a bid and ask, and we make a determination that we’re going to buy or we’re going to sell. Thank you for answering that, because I think that’s what was the main question that gold holders had. You mentioned the audit. It’s everywhere in the news. We get it. But is the bigger question not whether it’s there or not? It’s how many hundreds of times it’s been sold without having fear to deliver?

06:45
Absolutely. Let me just give a little background and we’ll get specifically to your question. But I think there’s a bit of information that’s not 100% correct. I mean, some people I really respect, but they’re not, you know, it’s not their specialty. Talk about, well, all the gold’s in Fort Knox. That’s not true. So let’s look at where the gold purportedly is right now. And then we’ll talk about what you just asked me. So right now the U.S. Gold Reserve locations primarily are Fort Knox, Kentucky.

07:12
And that has 147 million ounces purportedly of gold. Well, we have 261 million ounces of gold. So where’s the rest? West Point Bullion Depository in New York holds about 61 million troy ounces. And the Federal Reserve Bank in New York owns about 51 million ounces. So if we’re gonna audit the gold, we should really audit Fort Knox, West Point and the Federal Reserve of New York simultaneously.

07:41
The reason I say simultaneously is because I’m not saying the US government would ever do this, but there have been and I’ve documented this with John Adams in Australia, where gold has been moved from one facility to another to make the books balance. And then the gold is put back in the original location. So now your question, does location prove ownership? No, it doesn’t.

08:06
So we could come in and see 147.3 million troy ounces of gold in Fort Knox and the other two I mentioned, West Point and the Federal Reserve Bank of New York. It all adds up every ounce is there. So what? Unless we know who the owner is or multiple owners, or if it’s been swapped, or if it’s been hypothecated for a loan, or if it’s promised to someone somewhere as collateral, unless we know that.

08:34
All we know is its location. We do not know its ownership. So this is a very important point. That is such a good point. Please continue. Well, I just complimenting you for bringing this up because this happens often. I mean, there’s been scams run of where, hey, here’s the gold, I own it. No, you don’t. You’ve located it. But you gotta be careful because a lot goes on in the financial world, as we all know, and the derivatives markets run the whole system.

09:04
along with the bots, the algorithms, the computers. So you gotta be very, very careful. And most people are somewhat naive. I mean, well, if it’s sitting at that location, obviously that’s the owner. It’s not necessarily true.

09:20
Well, um.

09:23
So I guess to just bring it home on that point, you’re saying even let’s say we get the audit and they say, yeah, the gold’s there. You’re saying, well, who cares? We still don’t know the truth.

09:36
Well, I think it’s good to know it’s there. Number one. I mean, I think that’s important, of course, but we really don’t know the ultimate truth. We don’t know just because it’s located in Fort Knox, Kentucky, that it’s really, you know, property of the U S or property of the Federal Reserve. We don’t know without somehow determining ownership. And you can’t tell that just by seeing how much gold is piled in a ball. That doesn’t tell you anything more than there’s that much gold in the ball. Doesn’t tell you the ownership.

10:05
I mean, there’s a lot of, you know, there’s a lot of gold sitting in the Comex, there’s a lot of gold in London, but that’s its location. It doesn’t mean ownership. I mean, there’s pallets. There’s pallets in New York in the Comex warehouses or vaults. And there’s different names on them all the time because one bank like HSBC may sell some of their gold to JP Morgan and the gold stays in place and they take a tag off of this.

10:33
pile and they put it over there. That gold is now JP Morgan’s gold. That’s what really happened. What happens when everyone wants it? Well, that’s when you have a gold run or a run on the bank. And that’s what could be, I want to use the word could not would taking place right now. Now, I don’t know for sure. I’m very conservative in my thinking because I don’t want to mislead anyone. But there’s a possibility that once this terrifying scared people and they started to see an arbitrage between London and New York.

11:01
and they’re shipping the gold over for tariff reasons initially. Then what happened in my study view is that some, uh, gold holders started to wake up and say, wait a minute, there’s delays in the LBMA. There shouldn’t be, or at least not that long. I’m going to get my gold back. So they never thought about repatriating their gold until they started to see these delays and that’s what happens in a bank run is that, you know,

11:30
Your neighbor goes to the bank, gets their money out, and the neighbor on the other side of you goes in the camp. They say, hey, if you come back in a week to get your money, wait a minute, you never thought about going to the bank to get your money out, but now you’re starting to hear around the talk of the town, like, you know, I don’t think the bank has all our money. Now everybody’s at the bank asking for their money back. Well, just substitute the word gold for money in the gold realm, and again, it could be happening. I’m not saying that, that’s actually taking place.

12:00
I’ve been speaking to a few sources to get to the bottom of how big is the story of all the gold moving from London to New York? Is it really something overblown or cause for concern? One thing that I was reflecting on is that some experts have discounted the fact like, yeah, okay, you have to wait for your gold, right? No big deal. But maybe you have to wait a week or two weeks. You have to wait for other things in life. But my point is, well, you can’t wait for your gold in times of crisis.

12:30
You don’t have a week. You might not know. I think, yeah, no, one more little small point that, uh, Ronan Manley from, uh, Bullion, I forget the name of their company put out on Twitter this morning. Is that, uh, some of the gold that’s in Fort Knox is coin melt. So when gold was confiscated, which it really was nationalized, but not the word play and gold was brought in.

12:58
from the U.S. citizens back into the treasury. That was gold coin. That’s 90% gold. So Ronan put out, yay, but the good delivery gold was taken out of Fort Knox in late 1967, early 1968, and flown on a U.S. Air Force C-130 to the Royal Air Force, Mindenhaf, and conveyed down to London, and given out to the cartel of English and French banks. And then,

13:27
They closed down the London gold pool as they had heisted all the good delivery gold out of Fort Knox. That comes from him. I’m not saying it’s true or false. I know for a fact that at the time a lot of the gold in Fort Knox was coin melt, not 999 fine. And for a gold contract to be valid, it has to be 999 fine. In other words, it’s just gold. It’s not gold and another metal, which coins are. And there’s a reason for that.

13:56
It’s to keep up the durability. Gold’s pretty malleable, and it makes the coin life better to put other metals in with it. Krugerrand, for example, has a pretty good amount of copper in it. That’s why if you’ve ever looked at a Krugerrand versus a gold maple, the maple just outperforms it appearance-wise because it’s 24 karat gold, whereas the Krug is not. I think 22 karat, don’t quote me, but it’s got copper in it. So it has a different color.

14:26
One more point on the COMEX because there’s data showing that since November of 2024, more than 12.5 million ounces of gold and 40 million ounces of silver have moved from London into the U.S. COMEX system. So to your point, is this is this just just a movement we’re seeing to avoid tariffs or something bigger, something part of a global monetary shift, David? I don’t think it’s.

14:56
that big, but it could be. I think it’s more than just the tariffs at this point, as I mentioned earlier. I think there’s some parties out there saying, you know what, show me the gold. You know, like the McGuire movie, you know, show me the money, show me the gold. I’ve got it stored with you. I want it on my domain. You know, I want the location to match the ownership. Let’s do that. You have it, you say you have it. I want it, ship it over. Well, that’s gonna cost you. Yeah, well, I’m paying. I pay shipping costs. Yeah, well, it’s an eight week hold.

15:26
Eight weeks, you mean it’s going to take two months? Well, yeah, why? Well, they don’t have a good explanation. Well, one of the explanations is some of the gold has to be refined in the kilo bars or hundred ounce bars from 400 ounce bars. I’ll buy into that slightly, but I think it could be more of a ruse than the actual facts. But I don’t know. I’m trying to be fair here and stay within the realm of what’s true and what’s false. We don’t have all the information.

15:55
But we do know that there are parties that are concerned. And this is something that hasn’t happened. And what’s really ironic, and maybe we want to visit this or not, is the retail market’s dead practically, and yet the wholesale big boy market, commercial market is on fire, which I’ve never seen before. I mean, I’ve seen them ebb and flow, but generally when the gold market’s off, all parts of the gold market are hot. And the gold market’s cold, all parts of the gold market.

16:25
But I’ve never seen where we’ve seen the institutional side so hot and the retail side so cold at the same time. A hundred percent, a hundred percent an accurate statement. And I’ve spoken with multiple bullion dealer owners who have informed me of this, David. Any take as to why? Yeah. I mean, I’ve thought about it a great deal. Sometimes I overthink things as you know me for years.

16:54
I think a lot of gold bucks are just burnt out that they bought their gold and maybe they were buying it at 2000 at one time, a new high. I mean, it took a while to get penetrate through the 2000 USD market and finally did. Now we’re almost a thousand dollars higher. And people that bought before that are like, you know, I’m just tired. I’m going to either sell my gold or hold what I have, but I’m not interested in buying gold at 3000. And then you just try to put yourself in, you know, the everyday person’s life that

17:24
doesn’t pay attention to the precious metals. And maybe they start to hear about on the news about this shift from London into New York, and they start to learn a little bit about gold. Well, $3,000 is a lot for someone to plunk down for one gold coin. So I think the price has an effect on the retail market, whether they’re willing to buy it or not. And I think the people that are in the know are just, I’ve got enough, I don’t want.

17:52
No, I want to say, sorry to interrupt, David, because I think that makes a lot of sense, right? $3,000, that’s a big number. If you’re Canadian, it’s even worse than that.

18:06
But why couldn’t you make that statement for Bitcoin then? Why is 16,000, when Bitcoin was 16,000 or 10,000, even 5,000, 6,000, why didn’t price come into play? I think it does. But to examine it a little deeper, when you have a hodl situation, hold on for dear life, that’s what’s called the float.

18:35
So like in the stock market, you might have a million shares out, but 98% of them are tightly held. So the float, the amount that’s available for purchase is extremely small. And that’s the Bitcoin world. So any new buying will take the price substantially higher. So now we’re in a position where Bitcoin is roughly $100,000 per Bitcoin. It cost $100,000 to mine a Bitcoin.

19:01
with Marathon Riot and the third biggest miner in the United States. So they’re break even. So now you got to get a big buyer to come in so that the insiders can sell off just like in the stock market. So hey, let’s get the US government involved. They’ll pay a hundred thousand dollars per Bitcoin. So they need a market. So they’re trying to create one so they have liquidity at that extremely high price where no one average can buy a full Bitcoin. No one can write a check for a hundred thousand. That’s an average workaround.

19:31
And so who has that kind of cloud? Well, the government does. They’ll just print up some more money and they’ll create a sovereign wealth fund with gold and Bitcoin. Well, gold, yeah, Bitcoin, forget about it. But that’s the reason. So there’s not a lot of transactions going on in the real world of Bitcoin, where the whales are able to start selling my 10 Bitcoin, my 100 Bitcoin, my 1,000 Bitcoin, my 10,000 Bitcoin. And there’s people like that that are multi…

20:00
that are billionaires in the Bitcoin world that bought it at a penny or mined it at a penny or 10 cents or whatever. So they need liquidity. And the only way to get liquidity is for somebody to come in. It’s like a Ponzi scheme. When you get near the top, you need new buyers to buy in and you start running out of buyers. So what do you do? You do your best to find new buyers. That’s Bitcoin. Who are the new buyers? Oh, let’s get the US government involved.

20:26
And what’s interesting about Bitcoin is gold is outside of the realm of the real world. I have a gold coin on my desk, but we’ll use a silver one. But that could be a means of final payment. That’s it. But you can’t take a Bitcoin and that’s final payment. You’ve got to use it, you know, for all practical purposes, get into Bitcoin with US dollars and get out of Bitcoin with US dollars. Yes, you can do it in other currencies, but you get my idea. It’s a dollar based system. It’s not independent. Now I’m not saying.

20:56
You know, someone could take me to task on the comments, say, well, wait a minute, David, I sold my house for Bitcoin, or I sold my car, and that’s true. So in that case, you could liquidate your Bitcoin, but that’s rare. But in the means of gold, you have the option, I could take the gold and use it as final payment, or I could convert it to currency of my choice. But that type of transaction really doesn’t occur much in the Bitcoin world at all, in almost all cases.

21:25
it the lion’s share are certainly changing dollars to Bitcoin, Bitcoin back to dollars. Whereas you could go from dollars to gold and stay in that gold realm. Look at the John Wick movies. I mean, what does he do with the cleanup crew? He pays them in gold, final payment, quiet, anonymous, and we’re both happy. You got paid and I got a service.

21:48
Well said, David. Finally, look, gold’s marching towards 3,000. We covered some of the reasons why. We didn’t even talk about accumulation of gold from central banks, but obviously, there’s interest in gold right now, like you said, not from the retail investor, but there’s definitely interest. But I heard you say you wouldn’t be surprised to see a pullback in gold. Why? Well, technically it’s overbought.

22:15
And all the news is out and the sentiment is really high. Sentiment really works pretty well in the markets. I mean, I started thinking early on, started trading stocks at 16 years of age. That is a numbers thing. You know, if you knew the numbers, you knew the profit or loss statement in a company and that works and it’s valid. But really the market’s psychology. And so the more I started to learn more about how the market really works, it’s pretty emotional. And so the emotion right now is really bullish gold. Sentiment is really high.

22:45
not retail wise, but in the bigger picture, looking at the institutional side. So I think that everyone expects it to continue to go higher. 3000 is just around the corner and may stall out just toward the 3000 mark. I mean, we’re at almost a new high today. And this could be it or not. I just really think that there’s going to be some pullback around this area. It could be above 3000. It could be below 3000.

23:14
And that we need some consolidation. Almost all the news you need to drive gold higher in the marketplace right now, which if you believe in some of the market theory, I’d certainly believe in all of it, would indicate that we have enough news out in the market and it would take something very substantive to move it further. We’ll see, could be wrong. Silver, I know one of the bigger banks put out their indication and they’re fading the market. Fade is their word for shorting.

23:43
They’re already shorting silver. We had almost a key reversal in silver just about a week ago, which means you make an all time high, not all time for silver, but all time within the realm of the last several months or year. So you get to this new high of 3450 or whatever it was. Then it reverses down that same day and it closes lower than the low of the previous day. That’s called the key reversal. We got pretty close to that. Key reversals are important. As you know, I’ve studied these markets for years.

24:13
Not always, but a great percentage of the time when that occurs, that’s the top. And so silver indicated it could be the top and it may be. And so everyone’s expecting higher and higher and higher. I do think by the end of the year, we’ll have higher gold and silver prices. I’m assuring everybody that’s the case. And that’s what I believe. I could be wrong, but I doubt it. But as far as where we are right here right now, I wouldn’t be surprised for this market to cool off.

24:42
More statements about we’re not really going to revalue the gold. That’s not what we meant. We’re thinking of solving wealth fund. Maybe someone looks at what the cost of mining a Bitcoin is and finding out these miners are losing money hand over fist. And the only way they’re staying in business is by issuing shares and diluting the hell out of their shareholders. Why is Bitcoin making near all time highs and that these stocks keep going lower and lower and lower? Because they’re not profitable. I mean, take a look people. I can’t believe there isn’t somebody.

25:11
on the United States Sovereign Wealth Fund proposal that doesn’t actually analyze a market to see what the heck’s really going on.

25:20
Or maybe they do and they’re just keeping their mouth shut because it is an outlet to sell more funny money as they call it, more U.S. treasuries. Well, let’s keep our mouth shut. The American public doesn’t know. They don’t study this stuff. Guys like Morgan are nuts. So let’s just press on and start issuing more Bitcoin so we have a market to sell our paper to. Who knows? Sorry for the Conspirial, but I do have my hat on.

25:48
I thank you always for your very level headed analysis. I appreciate you. Thank you for coming on. My pleasure, Daniella. Thank you. And thank you all for watching. We’ll have more great content. You know the drill. Sign up at danielecombone.com and subscribe to our YouTube channel. Just helps us keep going. That’s it for me.