The US Treasuryโs gold reserves have surpassed $1 trillion in market value, as gold prices hit record highs above $3,824 an ounce. However, the government still lists them at just over $11 billion, based on a 1973 price of $42.22. The surge, driven by investor demand amid economic uncertainty, Fed rate cuts, and rising geopolitical tensions, has renewed speculation about revaluing the reserves, an idea floated and later dismissed by Treasury Secretary Scott Bessent. While such a move could unlock nearly $1 trillion in funding, it would carry significant financial system implications, according to Bloomberg. They write:
The US Treasuryโs gold reserves have surpassed $1 trillion in value โ more than 90 times whatโs stated on the governmentโs balance sheet โ as the precious metal breaks new all-time highs.
The worldโs biggest gold stash passed the milestone after prices rose above $3,824.50 an ounce on Monday, in a 45% rally this year. Its official value, however, based on the $42.22-an-ounce price set by Congress in 1973, is fixed at just over $11 billion. […]
The US would not be the first country to do so, though. Germany, Italy and South Africa all have taken the decision to revalue their reserves in recent decades, asย an August note from an economist at the Federal Reserve noted. […]
Conspiracy theories circulated in February, encouraged by comments by President Donald Trumpย andย billionaire Elon Musk, that the gold held in Fort Knox might not in fact be there.
โWeโre going to go to Fort Knox โ the fabled Fort Knox โ to make sure the gold is there,โ Trumpย saidย at the time. โIf the gold isnโt there, weโre going to be very upset,โ he added.
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