Highest US bond yields since 2001 & valuable lessons from a discovered gold treasure in Belgium

A recent Belgian gold discovery worth €9 million offers several lessons. At the same time, US Treasury Secretary Scott Bessent is facing the highest yields on US government bonds since 2001. What is going on?

Highest bond yields since 2001

US interest expenses have now risen to $3 billion per day, almost 14% more than a year earlier. It is difficult to put such figures into proper perspective, but the rising interest burden on the US government is sending another clear signal.

US bond yields rise above 5%, the highest yield on 30-year government bonds since 2001. (Source: Bloomberg).

At a recent auction of 30-year US government bonds, the yield came in at 5.216%. Investors were only willing to buy US government debt at this unusually high yield. It appears to send a clear message to Treasury Secretary Scott Bessent that confidence in US fiscal policy is declining.

“Investors around the world are being asked to absorb a growing supply of government bonds at a time when budget deficits remain large, uncertainty about inflation persists and the Federal Reserve [US central bank, ed.] is no longer a major buyer,” said Michal Stanczyk, a portfolio manager on the global fixed-income team at Allspring Global Investments.

“If investors continue to demand higher compensation for inflation and fiscal risks, long-term yields could rise further and move even further above 5%, even if US Treasury auctions continue to proceed smoothly,” he added.

Rising yields on debt securities are feeding through into the rest of the economy, with US mortgage rates now moving towards 6.69% for a 30-year mortgage.

Although higher interest rates can make other safe-haven assets, such as bonds, more attractive than gold, which pays no interest, this is only part of the story. High yields are in themselves a sign of distrust in the US government’s fiscal policy. Gold could benefit significantly from this.

Gold and silver prices in euros per kilogram over the past week.

After several days of rising prices, profit-taking pushed gold and silver prices slightly lower again towards the end of the week.

At the same time, economist Robin Brooks expects the debasement trade to return, perhaps with a similar starting signal to the one that preceded last year’s rally. In the chart below, he highlights several dates: April 2, 2025, the day Trump announced his tariffs, which sent a shockwave through the markets. The second date he highlights is August 22, 2025; this was the day Fed Chair Jerome Powell delivered his Jackson Hole keynote presentation. According to Brooks, that presentation led markets to expect the Fed’s focus to shift from inflation towards supporting the labour market.

We now face a similar moment. On August 28, new Fed Chair Kevin Warsh will deliver his Jackson Hole keynote presentation. According to Brooks, this coincides with several favourable indicators for gold. A date worth keeping an eye on.

Gold price in dollars per troy ounce (31.1 grams) since January 2025. (Source: Robin Brooks).

Spectacular gold discovery in Belgium

In recent days, a news story about a gold discovery in Belgium went viral. During renovation work in Sint-Gillis-Dendermonde, construction workers found a huge quantity of gold bars and gold coins in a chest that had been bricked into a wall. The total value is estimated at €9 million. “This is a once-in-a-lifetime experience,” Geert Hillaert of CAW Oost-Vlaanderen told Belgian broadcaster VRT.

Finding such an enormous gold treasure reads like an adventure story. At the same time, the construction workers, in accordance with Belgian law, reported the treasure to the authorities. An investigation will have to determine who can ultimately claim the treasure and whether the original rightful owner can be identified.

Close-up photo of gold Sovereigns in a bucket, photo by Dendermonde Police

Photos released by the police show a bucket full of Gold Sovereigns. The Gold Sovereign is the British equivalent of the Dutch Gouden Tientje and is also widely traded at Holland Gold. The coin was minted between 1817 and 1932, while a modern reissue appeared from 1957 to 2026. The 22-carat coin depicts St George and the Dragon, while the obverse features the portrait of the British monarch.

In addition to the large quantity of Sovereigns, one of the police photos also shows 49 one-kilogram gold bars, together already worth more than €5.9 million. Judging by the names and dates of the refineries stamped on the bars, they date from the 1960s and earlier.

Detail of the Belgian gold discovery, photo by Dendermonde Police

What stands out is the large collection of bars from iconic refineries such as Rothschild and Johnson Matthey. Both have histories dating back to the late 18^th and early 19^th centuries. Johnson Matthey became the official refiner and assayer of the British central bank, the Bank of England, in 1852.

In that same year, the refining of the gold used by the British mint, The Royal Mint, to strike its coins was outsourced to N.M. Rothschild & Sons. And yes, this is the Rothschild of the famous banking family. The Rothschild one-kilogram bars found in Belgium therefore also bear the initials R.M.R., an abbreviation for Royal Mint Refinery. These bars were produced until 1967, and several of them also show dates such as “1957” and “1960”. In some cases, such bars can command an additional premium because of their historical value, although in most cases they are melted down when sold.

At Holland Gold, we also occasionally see small Johnson Matthey bars when customers sell gold to us. When these gold bars were produced with a purity of 999.9/1000, they are generally purchased at the same rate as a modern C.Hafner or Umicore bar. After purchase, these bars are melted down by refineries and turned into new gold bars.

Refineries such as Rothschild and Johnson Matthey played an important role in the development and maturation of the gold market and have a rich and remarkable history. Today’s London gold fixing at the LBMA used to take place at Rothschild’s own offices. This dates back to 1919 and continued until 2004, when the investment bank withdrew from the gold market after 261 years.

Given the historical Gold Sovereigns, it would not be surprising if this gold treasure had been accumulated up until the 1960s and was bricked into the chest sometime afterwards. Whoever did this appears to have taken the knowledge with them to the grave, after which the treasure remained forgotten for decades.

That is something worth reflecting on. The chances of finding a gold treasure in our own back garden and being allowed to keep it, as happened to a Frenchman last year, are not particularly high. The chances that a family member has hidden a secret quantity of gold or silver without telling their heirs are considerably greater. There are plenty of anecdotes in which, while sorting through an estate, a gold bar or Dutch gold ten-guilder coin suddenly turns up at the bottom of a tucked-away bag or beneath an unusual ornament on a sideboard. Sometimes in belongings that were almost thrown away.

Forgotten family gold treasure?

It is quite common for wealth or gold holdings within a family not to be discussed. As a result, heirs may have no idea that gold or other precious metals have been left to them. If an estate is not organised during someone’s lifetime, this can lead to disputes among heirs. But it can also result in wealth accumulated over many years, as in the example of the gold treasure above, being forgotten. Everyone’s situation is different, but later in life it can be wise to prepare an estate together with a notary or family members. If physical gold, such as gold coins and bars, forms part of the estate, companies such as Holland Gold can assist with valuation, storage or sale.