How Big Is the US Gold Reserve and What Is It Worth?

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How Big Is the US Gold Reserve and What Is It Worth?

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Summary

The U.S. gold reserves, primarily stored at Fort Knox and valued significantly higher than their official book value, have not been audited since 1953, raising concerns about transparency and the true state of these assets amidst the nation’s fiscal challenges.

 

Economic Implications

1. The US gold reserve, valued at $757 billion at current market prices, is 68 times its official book value of $11 billion, highlighting a significant discrepancy in valuation methods.

2. Despite being the world’s largest gold reserve, its value is insufficient to fund the US Department of Defense for a year or make a substantial impact on the $36 trillion national debt.

Gold Reserve Details

3. The US gold reserve, totaling 261 million troy ounces, is primarily stored at Fort Knox (56%), West Point mint (21%), and Denver mint (17.7%).

4. The official valuation of US gold reserves at $42 per ounce based on the 1973 statutory rate is drastically lower than the current market price of around $2900 per ounce.

Economic Policy

5. The value of the US dollar is not tied to the size of the gold reserves, indicating that the reserves do not serve as a solution to the country’s fiscal challenges.