THE US Treasury’s gold holdings have surpassed $1 trillion in market value, dwarfing the $11bn figure recorded on government accounts, as precious metal prices reach unprecedented levels, said Bloomberg News on Monday.
The world’s largest gold stockpile crossed the threshold after prices climbed above $3,824.50 per ounce on Monday, marking a 45% gain this year. However, the official valuation remains anchored to the $42.22/oz price established by Congress in 1973.
Gold has set consecutive records throughout the year as investors sought refuge amid trade tensions, geopolitical uncertainty and mounting concerns over potential government funding difficulties in the US. The surge has been supported by exchange-traded fund inflows and resumed Federal Reserve interest rate reductions.
Earlier this year, Treasury Secretary Scott Bessent’s casual remarks triggered speculation that authorities might revalue the gold reserves to market prices, potentially releasing approximately $990bn. Bessent subsequently dismissed the notion, and Bloomberg reported the proposal was not receiving serious consideration.
Such a revaluation would address roughly half the $1.973 trillion budget deficit recorded through August, a shortfall only exceeded during 2020 and 2021, said the newswire.
The Treasury holds approximately 261.5 million ounces of gold, with more than half stored at Fort Knox, Kentucky, and the remainder distributed between depositories in West Point, Denver and a vault beneath the Federal Reserve’s Manhattan headquarters.
Germany, Italy and South Africa have previously revalued their reserves, according to Federal Reserve research published in August.
