"The US Treasury's gold reserves have surpassed $1 trillion in value - more than 90 times what's stated on the government's balance sheet - as the precious metal breaks new all-time highs. The world's 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."
"Unlike most countries, the US's gold is held by the government directly, rather than the central bank. The Fed instead holds gold certificates corresponding to the value of the Treasury's holdings, and credits the government with dollars in return. That means that an update of the reserves' value in line with today's prices would unleash roughly $990 billion into the Treasury's coffers."
US Treasury gold reserves are now worth more than $1 trillion as gold topped $3,824.50 an ounce following a 45% rally this year. Official accounting values the reserves at just over $11 billion using the $42.22-per-ounce price set by Congress in 1973. The Treasury holds the gold directly while the Federal Reserve holds gold certificates and credits dollars to the government. Marking the reserves to market would release roughly $990 billion, enough to cover about half of the near-$2 trillion budget gap through August. Record gold demand has been driven by trade tensions, geopolitical risks, ETF inflows, and renewed Fed rate cuts.
Read at Fortune
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