Andy Schectman: The Coming Gold-Backed Treasury and the Quiet Revolution in Global Money

Andy Schectman argues the U.S. is preparing to back long-term Treasuries with gold a shift that could redefine global reserves and create strong tailwinds for precious metals and mining stocks.

In a wide-ranging discussion on The Real Story, Andy Schectman, CEO of Miles Franklin Precious Metals, laid out what he believes is one of the most significant potential shifts in the global monetary architecture in decades: the possible introduction of long-term U.S. Treasuries backed by gold. While much of the financial media remains focused on short-term interest rate expectations and geopolitical headlines, Schectman argues that deeper structural changes are already underway — changes that could ultimately favor higher gold prices, a weaker dollar, and a revival of American manufacturing.

The Genius Act and the New Collateral Reality

Schectman points to the recently passed Genius Act as a pivotal development. The legislation requires stablecoins to be backed primarily by short-term U.S. Treasuries. This creates synthetic, structural demand for the front end of the Treasury curve every time money moves through the system. Because interest earned on these Treasuries cannot be passed through to stablecoin holders under the new rules, the issuers (such as Tether and potentially major banks launching their own stablecoins) are effectively forced to find another home for that yield. Schectman believes a significant portion of this capital is already flowing — and will continue to flow — into physical gold. This mechanism, he argues, effectively pins the short end of the curve while simultaneously creating powerful, ongoing demand for gold without requiring the government to directly purchase it in the open market.

Gold-Backed Long-Term Treasuries: The Back End Solution

The more ambitious part of Schectman’s thesis involves the potential issuance of long-term (30- to 50-year) Treasuries that are ultimately redeemable in gold rather than dollars. This would allow the United States to continue issuing debt and running deficits while providing the world with a credible, asset-backed instrument. It would also give the U.S. a pathway to address its massive debt burden without resorting to outright default or politically impossible austerity. By backing the long end of the curve with gold, the U.S. could theoretically:

• Maintain the dollar as the primary medium of exchange and unit of account.

• Allow gold to serve as the neutral reserve asset and store of value.

• Create conditions for a weaker dollar that supports the reshoring of manufacturing.

Schectman notes that this approach would represent a form of “de-treasurization” rather than outright de-dollarization. The dollar could remain widely used for trade, while gold gradually assumes a larger role in reserves and long-term savings.

July 4th and the 250th Anniversary

Schectman assigns roughly 50/50 odds that President Trump makes a significant announcement linking gold to the Treasury market around July 4th, during America’s 250th anniversary celebrations. He believes the symbolic weight of the occasion, combined with the need to project strength and vision, makes it an ideal moment for such a move. He draws on comments from Judy Shelton, who has previously suggested that gold could be reintroduced into the monetary framework in a pragmatic way — not through a full return to the classical gold standard, but through gold-redeemable instruments that coexist with the existing system.

Central Bank Buying and Physical Demand Tell the Real Story

While markets have been distracted by short-term narratives around interest rates and geopolitics, Schectman emphasizes that central banks have continued buying gold aggressively and inelastically. China has now purchased gold for 19 consecutive months, with its most recent reported purchase being the largest in that streak.This buying has occurred across a broadening group of nations, including Poland, Kazakhstan, Brazil, and others. Gold has now officially surpassed U.S. Treasuries as the largest reserve asset held by central banks globally.Equally telling, Schectman highlights the massive physical deliveries standing at COMEX in recent months — approaching $13–14 billion in the first part of June alone. This persistent demand for actual metal, rather than cash settlement, stands in contrast to the price action and suggests that sophisticated, well-capitalized buyers are accumulating regardless of near-term volatility.

Implications for Mining Stocks and Silver

Schectman remains bullish on mining equities over a multi-year horizon, even as they have lagged in recent months due to capital flowing into AI and technology narratives. He views current weakness as an opportunity to accumulate high-quality, under-hedged producers and developers ahead of what he expects will be a more sustained move higher in gold. On silver, he maintains that the metal remains structurally tight. As gold’s monetary role expands, silver is positioned to benefit as a high-beta collateral asset. He expects the gold-silver ratio to compress meaningfully over time as silver catches up during periods of gold strength.

A Path Forward — Or the Only Path Left?

Schectman frames the potential gold-backed Treasury structure as a pragmatic way for the United States to address its unsustainable debt trajectory while attempting to revive domestic manufacturing. By allowing the dollar to weaken in a controlled manner and providing gold-backed instruments, the U.S. could theoretically attract investment, reduce its reliance on foreign capital for short-term funding, and buy time to rebalance its economy. Whether this specific plan materializes on July 4th or at a later date remains to be seen. What appears increasingly clear, however, is that the global monetary system is undergoing a profound shift — one in which gold is regaining importance not just as a hedge, but as a foundational collateral and reserve asset. For Canadian mining investors, these developments reinforce the long-term structural case for gold and silver equities. As the world’s largest reserve asset continues its quiet reassertion and new mechanisms emerge to integrate it back into the financial architecture, the companies that produce these metals stand to benefit from what could be a multi-year re-rating. The coming months will reveal whether the United States chooses to formalize gold’s return to the center of the monetary system — or whether it continues down a path of ever-increasing debt and declining purchasing power. Either way, the physical accumulation by central banks and sophisticated investors suggests they have already made their choice.

Disclaimer

This article is for informational and educational purposes only and does not constitute investment advice, financial advice, or a recommendation to buy, sell, or hold any securities. All statements regarding monetary policy, government actions, commodity prices, central bank behavior, and investment outcomes are forward-looking and involve significant risks and uncertainties. Actual results may differ materially from those expressed or implied due to factors including regulatory changes, geopolitical developments, interest rate movements, fiscal policy decisions, and market conditions. Precious metals and mining investments involve substantial risk of loss. Investors should conduct their own thorough due diligence, review all public filings, and consult qualified financial, legal, and tax advisors before making any investment decisions. Past performance is not indicative of future results.