Are They Planning More Than One Gold Reset? Bill Holter & David Morgan Weigh In
In an October 15, 2026 interview with Danny of CapitalCosm, Bill Holter and David Morgan examined hot inflation data, the recent pullback in gold and silver, and the possibility of one or more official gold revaluations.
The conversation opened against the backdrop of a September Producer Price Index that rose 6.3 percent year over year, the largest increase since 2022 and well above the 5.5 percent consensus. The prior day’s Consumer Price Index had printed at 3.7 percent. Morgan framed the bigger picture. “The fundamental issue is no longer what the Federal Reserve wants to do. The issue is how well debt markets can withstand the amount of hardship that households, businesses, and governments can endure with the rising cost of borrowing.” He noted that the dollar’s share of global trade has already fallen from roughly 78 percent two decades ago to about 58 percent. “The less you trust him, the higher the interest rates will rise.”
Holter addressed the recent drop in 10 year yields. Traders may be pricing in future rate hikes that would slow activity, prompting some to buy bonds. He also highlighted an undiscussed development: Trump has floated releasing $300 billion in Russian Treasury bonds seized under the prior administration. “If she is indeed released, it will be a huge morale booster.” The seizure itself, he said, marked a turning point in October 2022 when gold and bond yields shifted.
On the metals, gold has held near $4,000 support while silver broke below $60 and traded near $56. Morgan described the paper market as the primary driver of short term volatility. Financial institutions manage large derivative positions relative to physical supply. He noted a 70 percent rise in silver in a single month earlier this year and viewed the current action as consolidation. “I don’t know, but it seems very close” based on charts and commitment of traders data. He called $60 and below a buying zone for silver and $4,000 and below a buying zone for gold. “Many, a year or two later, who bought gold at $4,000 and said, ‘I wish I had bought it when I first heard Bill Holter,’ will look back at that $4,000 price and feel very grateful.”
Holter observed that silver is always more volatile than gold, rising and falling faster. New open interest of roughly 4,500 contracts (about 22 million ounces) appeared on a down day, consistent with commercial pressure that often reverses near lows. Both guests noted unusual market behavior, including metals decoupling from oil even as West Texas Intermediate crude approached $98 amid concerns over further conflict with Iran. Morgan asked the practical question: in an all out war, “What will remain after that? Paper money or gold and silver?”
The discussion turned to revaluation. Holter said multiple or competitive resets are possible. “The United States might say, ‘Okay, we’ll revalue it to $10,000.’
Then China comes back a week later and says: ‘No, no, no. We will pay $20,000 for gold.’
Therefore, there may be competitive reassessment processes.” Revaluing gold higher creates additional collateral that can support more credit. “Therefore, it is upward inflation.” He pointed to the 1934 U.S. revaluation from $20.67 to $35 as a historical parallel that strengthened balance sheets and fought deflation.
Morgan estimated that roughly $160,000 per ounce would be required to cover the entire debt under one framing, but he argued the priority should be clearing bad credit first. “You must get rid of all these struggling companies that do not have enough income to cover their interest. You must get rid of all these other companies that are valued at a hundred times their profits.” Only after the market is cleaned, he said, would a lower revaluation (perhaps around $30,000) make sense. “Until you clear the market… you need to clear this situation so that we have a real core everywhere.”
Holter noted that bad debts have not been properly settled since 1987; 2008 merely injected liquidity and enlarged the problem. On confiscation, he was skeptical. House to house searches would meet resistance. U.S. Mint coins such as Eagles and Buffalos would be especially difficult to seize because of ongoing legal challenges. “I don’t think there will be that kind of confiscation.”
Both guests returned to a core point. Holter closed with the reminder that “gold is money. It’s real money. Everything else is credit. Credit may default. Real money never gets stuck.” Morgan added that average hourly wages measured in gold have fallen dramatically since the 1960s, underscoring the long term erosion of purchasing power in fiat terms. For those who understand the setup, physical metal remains the position that survives the credit cycle.
