Benzinga: Gold Revaluation: Nuclear Option America Might Pull Again
Article by Stjepan Kalinic in Benzinga
The U.S. is sitting on an enormous pile of gold, and pretending it’s worth $11 billion. As America’s debt explodes and credibility cracks, a century-old trick might be back on the table: reprice the gold, fix the balance sheet, and pray the world buys it.
Why Would The US Revalue Its Gold?
The U.S. gold reserve, the largest of its kind, has sat in the background of financial policy for a decade. Yet, as the budget deficit widens, a radical idea of revaluing this gold is starting to catch traction.
The logic? Leverage what you already own. The U.S. Treasury claims to hold over 261 million troy ounces of gold at Fort Knox, West Point, and the Denver Mint, valued on the books at just $42.22 per ounce. The 1930s “official” price implies a total gold reserve value of around $11 billion — barely a rounding error on the $34 trillion-plus national debt.
Mark that same gold to the current market price at $3,300/oz, and suddenly it is worth over $861 billion. At $8,000? Try $2.1 trillion. And if you entertain the more aggressive estimates, things get .....