Gold has been back in focus as institutions reassess how to navigate persistent monetary, credit, and geopolitical risk. Many allocators still treat gold as a static hedge—an asset that sits on the balance sheet and appreciates in dollar terms over time. We take a different view.
To us, gold functions as money, not just another investment line item, and once you see it that way, a more productive question emerges: if gold is money, why not put that money to work?
From a portfolio perspective, what’s the rationale for holding gold when it doesn’t produce income or cash flow?
Institutional discussions often ask, “gold versus the S&P 500?” We think that’s the wrong comparison. A broad equity index is expressly designed to be an investment; gold, in our framework, is closer to base money that holds purchasing power across cycles and policy regimes.
A more relevant question is this: if you had the choice between holding a stack of gold and a stack of U.S. dollars for the next decade, which would you trust more to preserve real purchasing power?
Viewed this way, gold is not competing with equities—it is competing with cash and nominal claims. Many institutions already recognize the value of having a portion of their reserves outside the traditional dollar system, but they often stop at simply warehousing bullion or gold‑linked exposure and paying for storage.
The GoldRush Yield Fund is designed to pick up where that conventional approach ends and ask a different question: if gold is core reserve money, can we deploy it in a way that systematically earns more gold over time while preserving its hedge properties?
How does your strategy transform static physical metal holdings into income‑generating assets?
In practice, our structure is straightforward. Institutional investors subscribe to the GoldRush Yield Fund in U.S. dollars. We use those proceeds to acquire physical gold and silver. We then place that metal into carefully underwritten leases and bonds in the metals ecosystem—financings that are denominated in metal terms and pay principal and interest back in physical gold or silver rather than in dollars.
The result is that, instead of holding inert metal and paying FEES, investors gain exposure to metal that is actively deployed into productive, metal‑related businesses and is designed to return a greater quantity of gold or silver over time. You still accept the underlying price risk of gold in dollar terms, just as you would with a traditional bullion allocation, but now that exposure is coupled with an explicit interest rate in ounces of metal rather than relying solely on spot price appreciation.
In what scenarios does it make strategic sense for an enterprise to take on gold‑denominated debt instead of conventional dollar financing?
The underlying rationale is easiest to see in businesses whose economics are naturally expressed in metal units—such as gold mines.
Consider a mine with an estimated 10,000 ounces of gold in the ground. Under conventional financing, management might borrow 25 million U.S. dollars to fund equipment, trucks, and payroll to extract and process that ore. If the gold price cooperates, they sell the 10,000 ounces, repay the 25 million dollars, and retain the residual as profit. But – if the gold price is cut in half during the project, the same 10,000 ounces may only generate 25 million dollars of revenue—leaving little or no economic margin and potentially pushing the company into effective insolvency as its dollar liabilities remain fixed while its revenue base collapses.
Now reframe the same project in metal terms. Suppose the mine instead borrows 5,000 ounces of gold rather than 25 million dollars. It still sells those ounces to fund capex and operating costs, but its obligation is now a fixed quantity of metal, not a fixed number of dollars. Whether the gold price rises or falls in dollar terms, the mine still plans to produce around 10,000 ounces and still owes 5,000 ounces back, retaining the remaining 5,000 ounces as its margin. By aligning its liabilities (debt) with its revenues (metal output) in the same unit of account, the enterprise materially reduces the risk that price volatility in the gold market destabilizes its balance sheet.
This is the space in which the GoldRush Yield Fund operates. We provide gold‑denominated capital to metal‑related businesses that prefer to measure both sides of their balance sheet in ounces, so they can focus on using producing metal rather than managing the basis risk between their underlying economics and a dollar‑denominated capital structure.
How do you justify converting a passive gold position into a yield‑bearing one within the context of long‑term monetary and portfolio risk?
We view gold as a long‑term strategic asset whose core purpose is to preserve purchasing power and provide resilience against monetary and credit stress, not to chase short‑term benchmark performance. We’ve watched the Federal Reserve and broader monetary policy for a long time, and have concluded that we’re going to own gold one way or another. If we assume we will own gold through the cycle regardless, the real question is how to make that allocation more productive without diluting its defensive role. When credible counterparties are willing to pay a yield in metal for risk we already intend to hold, it becomes a disciplined extension of an existing policy allocation, not a speculative departure.
This structure can also support a healthier ecosystem: producers and users of metal secure financing aligned with their metal‑based cash flows and reserves, while long‑term gold holders gain a clear path to compound their position in real terms. In other words, we preserve the hedge characteristics institutions seek from gold while turning a static reserve into an allocation that works quietly in the background—gold that goes from idle to income over time.
For institutional investors who see the evolving role of real assets and the vulnerability of purely nominal claims in a changing monetary landscape, the GoldRush Yield Fund is built to connect traditional reserve value with a modern, yield‑generating structure tied directly to physical metal. To explore how this strategy could complement your portfolio’s long‑term stability and real‑return objectives, please contact Greyson Geiler at 1.844.GOLDYLD (465‑3853).
Silver has surged after decades of lagging behind gold, narrowing a historically wide silver/gold ratio. However, much of the “easy money” in that move may already be behind investors. Both metals still play distinct and complementary roles: gold remains the premier monetary safe-haven asset, while silver is increasingly driven by industrial demand and a thinner, more volatile market.
For over forty years, silver traded below its 1980 high and significantly underperformed gold, even as gold repeatedly reached new highs. In 2024–2025, silver finally began to “make up for lost time,” with prices advancing roughly 148% during that period and sharply closing part of the gap with gold. This catch-up reflects years in which the world consumed more silver than it produced, even while investor attention and central bank buying were overwhelmingly focused on gold. As silver re-priced, the silver/gold ratio compressed from extreme highs toward more historically normal levels, rewarding investors who entered when silver was deeply undervalued relative to gold.
The silver/gold ratio measures how many ounces of silver are required to buy one ounce of gold. As a bit of context, silver is about 8.5 times more abundant on Earth than gold. For most of the Roman Empire era, the ratio hovered near 12:1. The ratio widened around post-Renaissance Europe to about 14:1. Then in early U.S. history, the bimetallic standard of the Coinage Act of 1792 was established at 15:1.
The silver/gold ratio measures how many ounces of silver are required to buy one ounce of gold, and it has a long and revealing history. For much of recorded monetary history, the ratio hovered near 12:1 in the Roman era and around 14–15:1 through large parts of post-Renaissance Europe and early U.S. history, including the bimetallic standard of the Coinage Act of 1792.
That changed dramatically after the Coinage Act of 1873 effectively demonetized silver in the United States. In moments of crisis, the ratio has spiked to extremes as investors rushed into gold, which is typically viewed as the more established safe haven. Since Nixon moved the United States, and the dollar, from the gold standard in 1971, the ratio has averaged about 60:1.
Although both metals are often lumped together as “precious metals,” their underlying markets are very different. Several structural factors explain why silver tends to be more volatile and why its ratio to gold can swing so widely.
Stocks vs. usage: Each year, humanity consumes silver at roughly four to five times the rate at which it consumes gold, when measured against above-ground stockpiles. This higher drawdown, combined with a much smaller overall market, makes silver a thinner, more volatile asset whose price can move sharply on marginal changes in supply or demand.
Industrial vs. monetary demand: Silver today is more industrial than monetary, used heavily in electronics, solar panels, and other applications, while gold demand leans more monetary and investment oriented. In global crises such as World War II or the Covid shock, gold has typically benefited more from its identify as a secure financial asset, helping push the silver/gold ratio to unusually high levels.
Supply dynamics: Gold mining responds more directly to price signals; with a rising gold price, exploration and production tend to increase over time. By contrast, most silver is produced as a byproduct of mining for other industrial metals, so silver supply is less responsive to its own price and more tied to broader industrial mining cycles.
Demand dynamics: Basic economics suggests higher prices eventually ration demand, both for silver in industrial applications and for gold as an investment. A key open question is at what price levels manufacturers start redesigning processes to use less silver and at what gold price investors begin to pull back meaningfully, especially in emerging markets that buy smaller jewelry and coin units.
After years of underperformance, silver was effectively a “coiled spring,” and the recent surge represents that stored potential being released. The structural deficit in silver—persistent usage above production—combined with a powerful bull market in gold made a period of catch-up in the ratio increasingly likely, although the exact timing, as always in markets, was the hard part.
Looking ahead, several forces could shape the next phase:
• Central bank demand: Central banks and large institutions have shown voracious demand for gold, not silver, as they seek to diversify away from paper currencies and dollar reserves. That official-sector buying is likely to continue to favor gold over silver, putting a floor under gold demand and potentially supporting a higher gold price over time.
• Price-driven substitution: As gold becomes more expensive in dollar terms, some investors naturally migrate toward silver as the more affordable way to gain precious metals exposure. At the same time, industrial users have not yet shown major signs of reducing silver consumption, suggesting that both investment and industrial demand could remain supportive of silver if prices do not become prohibitively high.
• Speculation vs. fundamentals: While silver may still have room to gain relative to gold, much of the easy upside from extreme ratio levels appears to have already been realized. For investors, that argues for treating silver/gold ratio trades as tactical and speculative rather than the core of a long-term precious-metals allocation.
From the perspective of the Goldrush Yield Fund, the goal is not to bet directly on the ratio but to treat gold and silver as productive capital that can be lent out to businesses in return for a yield paid in metal. At present, the opportunity set is skewed toward gold, which is why the fund’s portfolio is roughly 90% gold and 10% silver, with the flexibility to adjust if market conditions change.
Gold leasing and lending are not new concepts, but the way they are implemented has evolved significantly. Historically, central banks engaged in opaque, loosely structured leasing programs that often resembled leveraged carry trades: gold was borrowed, sold, and the proceeds invested in higher-yielding assets, with the promise—but not always the reality—of eventually repurchasing and returning the gold. That older model carried substantial risks, including mismatches in duration, price exposure, and counterparty behavior, and the volume of such leases has shrunk as a long bull market in gold made these carry trades harder to unwind profitably. In some cases, institutions effectively practiced a form of fractional-reserve gold leasing, lending claims on the same metal to multiple counterparties, with obvious consequences if too many parties wanted their gold back at once.
In contrast, today there is a standardized, transparent marketplace for true gold and silver leases in which ownership of the metal remains with the lender, and terms are defined clearly. Private investors are now able to participate in this market through vehicles such as the Goldrush Yield Fund, whose manager has navigated this independent leasing and bond ecosystem over roughly a decade.
The Goldrush Yield Fund was launched on June 12, 2025, as a private fund managed by Andorra Capital, LLC, a registered investment advisor, and is offered under Regulation D 506(c) to accredited investors only. The fund uses NAV Fund Services as its transfer agent and administrator, CIBC as its banking partner, and Interactive Brokers as its broker, and it charges a 1.5% annual management fee with no performance fee.
The fund’s core purpose is straightforward: it owns physical gold and silver and deploys those metals into interest-bearing leases and bonds, generally with terms of one to five years. Management actively oversees both the gold/silver allocation and the mix of leases bonds, and the fund has the capacity and expertise to hedge risk where appropriate while benefiting from economies of scale and institutional-level deal flow.
The fund’s strategy is to “think in ounces rather than dollars,” using gold and silver as the base currency rather than treating them merely as static stores of value. Instead of simply holding bullion and hoping for price appreciation, the fund invests those ounces into real businesses in the precious metals ecosystem and earns interest denominated in metal.
• Leases: Leases are typically used with companies that hold gold or silver as inventory or work-in-progress, such as wholesale jewelers. In a lease, the fund effectively owns the inventory and assumes the price risk of the metal, while the lessee uses it in their operations; these off-balance-sheet arrangements usually pay between 2% and 5% per year in metal terms.
• Bonds: Metal-denominated bonds look more like conventional corporate bonds, except that both principal and interest are specified and repaid in ounces of gold rather than in dollars. Borrowers are generally companies that generate their own gold income—such as mining firms—and these on-balance-sheet instruments typically offer higher coupon rates, often in the 6% to 19% range in gold terms.
Because the underlying market for these leases and bonds has grown to an institutional scale, the fund can maintain a pipeline of potential deals and be at the forefront of new opportunities. The long-term objective is to deliver income and growth above the price performance of gold itself, net of fees, by combining active management with access to specialized financing structures in the precious metals sector.
From an investor’s standpoint, buying physical gold has historically been a way to move credit instruments (like bank deposits or bonds) into real money. The Goldrush Yield Fund attempts to go one step further: once that gold position is established, the fund aims to put those ounces to work in a professional, risk-managed strategy that seeks to generate ongoing metal-denominated income—even for qualified (IRA and Roth) accounts.
In sum, the recent compression in the silver/gold ratio underscores how dynamic the relationship between these two metals can be, driven by differing roles in the monetary and industrial systems. For qualified investors who already view gold and silver as core stores of value, strategies like the Goldrush Yield Fund present one way to transform static metal holdings into potentially income-producing capital—while also introducing a specialized set of risks that require careful, informed evaluation.
Gold has had an impressive multidecade run, but the most interesting story today is not just its price, it’s the fact that gold is quietly becoming an income producing asset. This shift opens the door to a very different question: instead of “When should I buy or sell?” the better question is “How can my gold pay me?”
Over the last 55 years, gold has climbed from about $35 an ounce in the early 1970s to nearly $4,500 an ounce by the end of 2025, a compound annual growth rate of roughly 8.78%. That “rocket launch” chart looks like proof that owning gold has been rewarding, but it also hides long, frustrating stretches where buyers who chased new highs felt instant regret.
Let’s revisit one of the worst historical moments to buy: 1980, when gold was around $590 an ounce. If you had bought 100 ounces—about $59,000 at that time—you would have watched the price drop for years, bottoming around $27,000 in 2001, a negative annualized return of about 3.54%. To make matters worse, a simple 4% bank CD over that same 25year stretch could have grown $59,000 to roughly $163,000, making gold look like the clear loser if all you cared about was price in U.S. dollars. That is the story most investors know. The one that keeps many of them stuck on the sidelines, afraid of buying near a top.
The twist I’m talking about now is thinking in ounces, not dollars. This is a powerful shift in perspective. What if, instead of letting your 100 ounces of gold just sit there, you had been earning 4% “gold on gold”—that is, 4% more ounces every year?
Under that scenario, by 2001 you wouldn’t still have 100 ounces; you would have about 227 ounces, even though the dollar price was still depressed. Fast forward to 2006, when gold’s dollar price finally moved back above your original purchase level. Those 227 ounces could have grown to roughly 277 ounces, translating to about $176,000, outperforming that same 4% CD in the “worst window” we could find.
This is the core message: the gold market is evolving from a simple price speculation play into a true capital asset class, where gold can be lent, borrowed, and used to generate yield. Gold is increasingly being treated more like a stock with dividends or a bond with interest, and less like a shiny rock you bury, and hope goes up in value.
We can liken this to the dividend reinvestment plans investors loved in the 1990s. Only now, the “dividend” is paid in ounces of gold instead of shares of stock. The focus shifts from “Did I buy at the perfect moment?” to “How many ounces can I steadily accumulate, and what might those ounces be worth over time?”
If you currently own gold, watch my recent video presentation. It will challenge the default instinct to “take profits” just because the dollar price has moved sharply higher. I explain why trying to time the top can put you right back into the “dollar matrix” you were trying to escape, and why redeploying gold to earn interest may be a more strategic next step.
If you do not yet own gold but feel that familiar fear of missing out after a big rally, this framework can help you think beyond short-term price moves and toward a long-term, yield-focused approach. Including how concepts like dollar-cost averaging and interest in ounces could work together.
To hear the detailed math and learn how the Gold Rush Yield Fund is implementing these ideas in real portfolios, watch the complete presentation on our website in our video gallery or on our YouTube page. If you are curious how these strategies might fit your situation, or how your existing gold could potentially be put to work, reach out to me directly to schedule a one-on-one appointment and explore your next step.
Regards and good investing,
Greyson Geiler
Market and industry data used in this presentation have been obtained from sources believed to be reliable. However, we have not independently verified such data and make no representation or warranty as to its accuracy or completeness.
Goldrush Yield Fund, LLC is managed by Andorra Capital, LLC, a Registered Investment Advisor. Andorra Capital has a conflict of interest in recommending the Fund to prospective investors. This material is informational only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The Goldrush Yield Fund is an unregistered private placement and is available solely to accredited investors. No securities commission or regulatory authority has approved or disapproved of the Fund, and there is no obligation to provide investment advice. Investing in the Fund involves risks, including the potential loss of principal. Past performance is not indicative of future results. Any forward-looking statements are based on current assumptions and are subject to change. Investors are responsible for conducting their own due diligence. Please review the Private Placement Memorandum (PPM) for detailed risk factors and consult with legal, tax, and investment professionals before considering any investment. For more information, please contact Greyson Geiler at ggeiler@andocap.com
A “de-dollarization” narrative has dominated financial media headlines over the last few years. Talk of the BRICs nations (Brazil, Russia, India, China and South Africa) launching an alternative currency for international trade settlement and storage of purchasing power has been circling for decades. Much of modern American life from the last few generations has been built on a financialization of the world economy. Essentially, the US is the “Saudi Arabia of money,” meaning we make the money and give it to the rest of the world in exchange for goods and services just like they do with oil. What would Saudi Arabia do if oil were replaced by another basic fuel? You get the point. A shift away from the US dollar as the world’s reserve currency would reshape the global economy in ways that are nearly impossible to quantify.
Although a new international BRICS currency clearly isn’t materializing, the BRICS group is expanding—now with ten full members, representing roughly half the world’s population and a collective annual GDP larger than the G7. Structurally, the member nations can’t agree on much past their dislike of the US dollar’s dominance. Considering that limited scope, gold has emerged as a de-facto alternative. Gold is already global, already liquid, and requires no unified central bank to manage it.
Over the last year, global central banks (led by China, India and Russia) have accumulated gold at such an aggressive pace that the aggregate value of gold on central banks’ balance sheets usurped both the Euro and the $ to become the #1 asset. Gold hasn’t held that top spot in decades. At the same time, demand for US Treasuries from international buyers has weakened as these countries redirect their reserves towards gold. This is a meaningful shift.
China has been particularly active in building gold-market infrastructure. The Shanghai Gold Exchange (SGE) opened a portion of its platform to foreign participants in 2014, and in June 2025 the Hong Kong depository launched. China is now establishing SGE depositories with trading partners all around the globe including in Zurich, Singapore and Dubai. The strategy is clear: enable international trade to be conducted in Yuan outside the SWIFT system and allow partners to convert their Yuan into physical gold stored in friendly jurisdictions. This matters because trust in Western custody is deteriorating—partly due to instances like the Bank of England freezing $2B of Venezuela’s gold in 2019. It is a growing concern where individual country’s physical gold is being stored. As of now, commercial gold-storage infrastructure in regions like South America is minimal, and yet Brazil’s central bank just increased its official gold holdings by more than 10%. It’s a reasonable guess that the SGE will be considering development there among other locations.
This is an oversimplified snapshot of global “de-dollarization” that, by default, has led to new developments in gold purchases and usage/infrastructure. But at the same time, a powerful counter-force is emerging: “dollarization” through digital dollars.
The GENIUS Act, signed into law in July 2025, created guardrails around the rapidly expanding stablecoin market. Stablecoins—like Tether, the largest—are digital tokens locked in value to $1 and now must be backed by legitimate, verifiable assets on a 1-to-1 basis. Effectively, people are able to store and transact U.S. dollars on the blockchain without needing a bank account. No SWIFT codes, no wire charges, no multi-days for settlement windows. And importantly, some are open ledgers, similar to Bitcoin. This means there is no central authority of Tether and other Stablecoins that can randomly freeze or limit a user’s coins for non-compliance or any other reason.
By contrast, CBDCs (central bank digital currencies) are centralized, fully monitored, and can be restricted or cancelled by authorities.
For many developing countries, that difference is enormous.
Stablecoin usage is accelerating at about $10 Billion per month with a total market cap around $300 Billion. Across South America (and parts of Africa), stablecoins backed by U.S. dollars are becoming popular alternatives to unstable local currencies. With the GENIUS Act giving implicit U.S. approval, this expansion has unexpectedly strengthened the U.S. dollar. An ongoing and increasing demand for US Treasuries from Stablecoin purchases is at least a part of the surprising resilience of the US Dollar considering the progress of the would-be de-dollarizers led by China.
Look at the U.S. Dollar Index over the last six months:
The index is heavily weighted towards the euro, so it isn’t a perfect measure of the dollar’s strength. But the chart certainly does not depict a currency imminently falling apart relative to its peers. Stablecoin expansion is contributing to the dollar’s resilience, and we may be heading into a world where both the dollar and gold rise together relative to the euro, yen, pound, and others.
The “De-Dollarization” and “Dollarization” discussed above is a tug of war that has no predictable medium-term outcome. And while the $10 billion per month or so flowing into stablecoins won’t fix the U.S. fiscal challenge of issuing $550 billion per week in new T-bills, it does create a meaningful new demand channel.
Layered onto all of this is the rise of digitized gold. Central banks—especially China’s—have signaled that gold remains the ultimate store of value. The Chinese seem content to allow their currency to remain linked to the dollar and devalue with the dollar vs gold – but that is for the transactional side. Now the standard of wealth – gold – is backing Stablecoins on the Blockchain. There are many such coins where an investor can purchase gold backed tokens and trade them on crypto exchanges. Although this strategy adds liquidity to an investor’s gold, there are fees involved and counter-party risk. However, now there is an emerging gold-backed Blockchain product that pays interest denominated in ounces of gold.
This is potentially transformative. While the GENIUS Act prohibits dollar-backed Stablecoins from paying interest to the coin holders, nothing stops gold-backed tokens from doing so. Gold has always been a store of value; if it becomes an income-producing asset usable in everyday transactions, it could evolve into something far more dynamic in the global monetary system.
This article is consolidating many nuanced market conditions, but from an overhead view it is describing a basic landscape. The world’s monetary system is changing rapidly, and these articles will continue in attempt to keep up. Topics on deck include:
Eleven countries have rolled out their own CENTRAL BANK centralized Stablecoins (CBDCs) and more are on the way. Intuitively, this could undermine the SWIFT system, but SWIFT is responding with their own CBDC. These aren’t market tested yet so stay tuned, but a crucial point is that NONE of these are beyond central compliance/regulation and almost all of them are on a centrally controlled ledger (unlike Bitcoin and Tether.)
Trump Administration promises that no Federal Reserve centralized coin will be issued – but many of the banks including Chase have built their own centrally controlled currency. Chase is paying interest on the Stablecoin (JPMD) – and it instantly settles outside of SWIFT and is available to transact through the visa system. Early adoption is not impressive – but stay tuned…
US dollar-backed Stablecoins (not-centralized) are expanding outside the banking system which will likely be more attractive to the international market than a central bank designed coin. But governments will want some control/regulation/taxation eventually.
There may be some countries that declare the US dollar their official currency. Ecuador did it in 2000 and some speculate Argentina will do it if they can clear their debt with the IMF. This would expand the US dollar reach and may prompt other countries to do the same.
The Trump Administration hints at backing long-dated US Treasury bonds with gold. We aren’t sure if that will happen or not, but to happen it would require a drastic revaluation of gold vs the US dollar.
Bitcoin is selling off as attention shifts toward Stablecoins and CBDCs..
Things are moving quickly. No one can say how this monetary realignment will ultimately unfold. One undeniable strategy in this ongoing saga is gold – and achieving a gold interest rate on gold! If you would like to hear how we are positioning ourselves in this dynamic marketplace reach out to us for more information.
Regards and good investing,
Greyson Geiler
Market and industry data used in this presentation have been obtained from sources believed to be reliable. However, we have not independently verified such data and make no representation or warranty as to its accuracy or completeness.
Goldrush Yield Fund, LLC is managed by Andorra Capital, LLC, a Registered Investment Advisor. Andorra Capital has a conflict of interest in recommending the Fund to prospective investors. This material is informational only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The Goldrush Yield Fund is an unregistered private placement and is available solely to accredited investors. No securities commission or regulatory authority has approved or disapproved of the Fund, and there is no obligation to provide investment advice. Investing in the Fund involves risks, including the potential loss of principal. Past performance is not indicative of future results. Any forward-looking statements are based on current assumptions and are subject to change. Investors are responsible for conducting their own due diligence. Please review the Private Placement Memorandum (PPM) for detailed risk factors and consult with legal, tax, and investment professionals before considering any investment. For more information, please contact Greyson Geiler at ggeiler@andocap.com
For most of recorded human history gold has been used as money. It is a tangible store of value, a unit of account and medium of exchange. It is durable, fungible, divisible, transportable and essentially has filled the roll of money better than the other items and commodities that have been attempted throughout the millennia. Gold is money.
The US Dollar was introduced by the US Congress in the Coinage Act of 1792. At that time, it was backed by a bi-metallic standard of gold and silver – but if we are pricing in just gold, $20.67 represented one ounce of gold and those dollars could be redeemed for the gold.
The 19th century represented tremendous growth in technology and the average American’s standard of living. But eventually governments are always inefficient and overspend and the US Dollar valuation couldn’t keep a consistent pricing in gold terms. Gold was repriced by FDR to $35 per ounce in 1934. The convertibility of dollars to gold was removed in 1971 by Nixon. Then in 1972, the US Senate repriced gold to $38 from $35 – and again to $42.22 in 1973. The IMF (International Monetary Fund) orchestrated/approved these moves as mandated by the Smithsonian Agreement of 1971.
According to the World Gold Council and the US Treasury the market value of the world’s central bank gold holdings is now larger than their holdings of US Treasuries ($4T vs $3.8T)
The 1971 cessation of the convertibility of US Dollars to gold was an attempt to remove gold from the monetary system and make gold essentially just a commodity. Of course, it was successful by many measures, but most countries and central banks held on to their gold and in 1975 the purchasing of gold for individual investors was legalized again. The price of gold in US dollar – and other paper currencies – has grown about 8% per annum since then.
The blizzard of paper money creation by the Federal Reserve (and other central banks around the world) since 1971 has been jaw-dropping. The simplest representation of the money madness is the $37 Trillion the US government is now in debt – but the profligacy is worse in other parts of the world. It’s a miracle how well the system is holding together…for now…
Strangely, during all these decades of ridiculous financial profligacy of our govt, the official price of the 8133 tons of gold on the Treasury’s books has remained $42.22 per ounce. The market price of gold is more like $3800 per ounce. Now there is a capital gain of about $1 Trillion that isn’t on the books anywhere. That leaves the question – will the book value of gold be adjusted higher? Treasury Secretary Bessent has hinted that gold may be revalued – but then seemingly contradicting that in different settings.
Theoretically, if the Treasury revalues gold higher on their books, they will have a $1 Trillion asset that they can borrow against rather than sell new notes and bonds into a marketplace hasn’t been aggressively buying new issues. Although this would be inflationary, it would support lower interest rates – at least theoretically. We will see if the Treasury makes an adjustment of the gold price on their books. In the meantime, take a look at a chart of the market value of our Treasury’s 8133 tons (261MM ounces) of gold…
The primary driving force of the rise in the price of gold has been foreign central bank buying for the last decade led by China, Russia and India. Over each of the last four years (2025 included,) foreign central bank purchases have totaled more than 1000 tons. That is roughly 30% of annual world gold production. The focus of the world’s monetary system is shifting to gold from the US dollar. Gold exchanges are mushrooming up around the world setting the stage for more of the world’s international trading to be settled in gold rather than in US Dollars.
Although the world’s central banks are making the headlines with their purchases of the precious metal, the buying of gold is not exclusive to central banks. Private investors including insurance companies, pension funds, 401K platforms and simply individual investors around the world have renewed interest in gold as it is being deployed as a capital asset again rather than just a valuable commodity sitting in someone’s safe. That’s right, there is an interest rate on gold (and silver) again as borrowing and lending of the metals is a rapidly expanding new marketplace!
The world’s monetary system is evolving and we are on the cutting edge of that change. Reach out to us if you would like more information on how to earn gold interest on gold holdings…
Regards and good investing,
Greyson Geiler
Market and industry data used in this presentation have been obtained from sources believed to be reliable. However, we have not independently verified such data and make no representation or warranty as to its accuracy or completeness.
Goldrush Yield Fund, LLC is managed by Andorra Capital, LLC, a Registered Investment Advisor. Andorra Capital has a conflict of interest in recommending the Fund to prospective investors. This material is informational only and does not constitute an offer to sell or a solicitation of an offer to buy any securities. The Goldrush Yield Fund is an unregistered private placement and is available solely to accredited investors. No securities commission or regulatory authority has approved or disapproved of the Fund, and there is no obligation to provide investment advice. Investing in the Fund involves risks, including the potential loss of principal. Past performance is not indicative of future results. Any forward-looking statements are based on current assumptions and are subject to change. Investors are responsible for conducting their own due diligence. Please review the Private Placement Memorandum (PPM) for detailed risk factors and consult with legal, tax, and investment professionals before considering any investment. For more information, please contact Greyson Geiler at ggeiler@andocap.com
