Debate over Valuing U.S. Gold Reserves at Current Market Prices Sparks Fiscal Concerns

The United States possesses about 261.5 million ounces of gold, the largest hoard globally, yet its official accounting value remains fixed at $42.22 per ounce, a rate set by Congress in 1973. This accounting treats the reserve as worth roughly $11 billion, far below its market worth of around $4,000 per ounce, which would total close to $1 trillion. Treasury Secretary Scott Bessent has affirmed the gold is fully accounted for but has not indicated any intention to reprice it.

The idea resurfaced after a congressional bill on a strategic bitcoin reserve mentioned gold repricing, and past remarks by Bessent sparked further speculation. Jurrien Timmer, a global macro director at Fidelity Investments, warned on X that even if Congress approved such a revaluation, the sudden influx of value could depress the dollar and elevate the term premium on Treasury yields, exacerbating inflation pressures. While other nations have adjusted gold valuations in the past, experts note that such measures alone would not resolve the United States' $40 trillion debt burden.