“The U.S. Treasury’s gold reserves are at one of the lowest levels in 90 years,” says Tavi Costa, partner and portfolio manager at Crescat Capital, joining Daniela Cambone on the Daniela Cambone Show. “At just 2% of total government debt, this imbalance is a green light for long-term gold investors.”

Costa warns that rising U.S. debt, surging interest costs, and the likelihood of dollar devaluation will eventually force the government to either buy more gold or revalue it, a move he believes could unlock massive upside for the metal. “The world is accumulating gold, and the U.S. will have to join in,” he says. Beyond gold, Costa shares why the AI arms race and a coming infrastructure boom could reshape the U.S. economy, creating major opportunities in raw materials and engineering sectors.

Gold Reserves Are Vanishing. Is a Monetary Reset Coming?

Just 2%. That’s how much of the U.S. government’s towering $37 trillion debt is backed by its official gold reserves.

To put that in perspective, during WWII, that figure was closer to 40%. Today, we sit at one of the lowest ratios in American history.

Why does this matter now? Because, as Crescat Capital’s Tavi Costa warns, the U.S. is running out of runway. And history shows what comes next: revaluation, inflation, or default.

Debt Is Exploding. Gold Is Nowhere in Sight.

Key Data Points:

• U.S. government debt: $37 trillion and rising
• Official gold reserves: Flatlined for decades
• Gold-to-debt ratio: Just 2%, down from 17% in the 1970s

Tavi Costa doesn’t mince words: “The U.S. dollar is expensive and unsustainable.”

In previous crises, gold was used to stabilize sovereign credibility. Not today. Now, central planners seem content to run the fiat printing presses while the dollar bleeds value and real rates pressure the system.

Meanwhile, China is quietly stockpiling gold. As are Russia, Turkey, and scores of emerging markets.

What does Washington know that they aren’t saying?

Revaluation: The Silent Weapon of Sovereign Desperation

Tavi believes the U.S. has only two choices:

• Default: A political suicide mission
• Inflate and revalue gold: The preferred path of past empires

Here’s how it might unfold:

• The Treasury increases its “collateral” by raising the book value of gold
• This expands the Treasury General Account (TGA) balance
• That new liquidity is used to buy back debt or finance strategic assets

Think that sounds extreme? It already happened in 1933 and 1971. And Costa says we’re seeing signs of it again.

The Global Gold Grab Has Already Begun

Costa poses a chilling question: “Does the U.S. still have the largest gold reserves?”

• China’s real gold holdings remain opaque but could surpass the U.S.
• Central banks worldwide have increased gold as a share of reserves
• Gold is now officially labeled a “critical metal” by U.S. policy

Meanwhile, the U.S. Treasury remains asleep at the wheel, failing to adapt while its fiscal position deteriorates.

And if the U.S. follows China’s playbook, expect:

• State intervention in gold and resource sectors
• Strategic investments tied to geopolitical dominance
• A shift in public-private partnerships that echoes WWII mobilization

The Dollar’s Decline Is Inevitable

If the Fed cuts rates while interest expenses eat up 5% of GDP, the result is predictable:

• Dollar devaluation
• Negative real returns on Treasuries
• Global rotation into hard assets like gold

Costa’s bottom line: “There’s always a risk of default. But inflating your way out is politically easier and historically more common.”

Add in AI infrastructure wars, declining productivity, and explosive fiscal spending—and the only real exit may be a return to gold.

Why Physical Gold and Silver Are the Last Safe Havens

When trust in fiat evaporates, only tangible assets retain purchasing power.

• Gold vs. Dollar: One holds value for centuries. The other gets printed at will.
• Wealth preservation: Gold and silver are your shield in the coming storm
• Inflation hedge: As interest rates fall, precious metals historically surge

Don’t wait for the headlines to confirm what’s already unfolding. The window to reposition is closing.

Conclusion: Will America Reprice Gold Before It’s Too Late?

Costa’s thesis is clear:

• The U.S. is cornered
• Gold is vastly undervalued
• A monetary reset may be closer than anyone admits

The writing is on the wall. Nations are preparing. Are you?

About ITM Trading

ITM Trading has over 28 years of experience helping clients safeguard their wealth through personalized strategies built on physical gold and silver. Our team of experts delivers research-backed guidance tailored to today’s economic threats.

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