The Treasury Is Sitting On A $750 Billion Gold Hoard–Officially Valued At $11 Billion

Key Points

1. The U.S. Treasury values its gold at $42.22 an ounce, a price set in 1973, totaling $11 billion for 261.5 million ounces, while the current market price would value it at over $750 billion.

2. A Federal Reserve research note discusses how other countries have revalued their gold reserves, with some using the proceeds to reduce debt or cover central bank losses.

3. Revaluing the gold would not require selling it but could provide a cash infusion for purposes like debt reduction, though it could also increase the money supply and stoke inflation.

4. Critics compare the idea to 'accounting manipulation' and reference the 1934 gold revaluation, which led to inflation and market instability.

5. Treasury officials, including Assistant Secretary for Financial Markets Josh Bessent, have denied any plans to revalue the gold reserves.