US gold reserves hit record high
Gold prices surged above $3,824.50 an ounce earlier this week, extending a 45% gain this year, fueled by safe-haven demand amid geopolitical uncertainty and concerns about a fiscal crisis. The surge pushed the value of the U.S. gold reserves past $1 trillion, based on market prices.
According to data from the Treasury Department , the US gold reserves are currently around 261.5 million ounces (equivalent to more than 8,100 tons), maintaining its position as the world's largest reserve, far surpassing countries such as Germany (3,400 tons), China and Russia (about 2,300 tons each).
Despite reaching a market value of more than 1,000 billion USD, the amount of gold on the US Government's books is only recorded at more than 11 billion USD, because the fixed price of 42.22 USD/ounce set by Congress since 1973 is still applied.
The current surge in gold prices has made the reserves worth more than 90 times their book value, raising speculation that the US government will revalue the gold. If the value of the gold reserves were updated to reflect market prices, the US Treasury would receive an additional $990 billion.
That huge sum is extremely significant, enough to cover about half of the US's $1.97 trillion budget deficit in the fiscal year ending August 2025.
However, while changing the way gold reserves are valued may sound appealing in the context of the debt ceiling, Finance Minister Scott Bessent recently dismissed the idea. Mr. Bessent dismissed the speculation, saying the plan was not being seriously considered.
Officials warn that a revaluation could have far-reaching effects on the financial system, including increasing liquidity and prolonging the Federal Reserve’s balance sheet reduction. While the US has not done so, other countries such as Germany, Italy and South Africa have all decided to revalue their gold reserves in recent decades.
Who holds US gold?
Unlike most other countries, US gold is held directly by the government (through the Treasury), not by a central bank. Instead, the Fed simply holds gold certificates that are worth the amount of gold the Treasury holds and provides the government with cash in exchange.
The bulk of the US gold reserves are held permanently in vaults at the famous military base Fort Knox in Kentucky. The gold was moved from New York and Philadelphia in the 1930s, in part to reduce the risk of foreign military attack across the Atlantic. The rest is spread across vaults at West Point, Denver, and a vault 80 feet below the Fed’s headquarters in lower Manhattan, New York.
Fort Knox has long been iconic, even the focus of conspiracy theories. Recently, former President Donald Trump and billionaire Elon Musk joked that they would “personally check” to see if the gold was really there.
Experts say the $1 trillion milestone has great psychological significance, although it does not change the fundamentals.
Leanna Haakons, president and founder of Black Hawk Financial, said that the US gold reserves reaching a value of $1,000 billion is in many ways more symbolic than substantive, but could impact the market.
Big numbers often reinforce existing gains and can attract new inflows into gold ETFs and futures as investors chase the trend, she added.
However, Ms. Haakons also warned that when milestones like this dominate the media, it can signal that gold trading has become overheated, leaving the market vulnerable to profit-taking or more volatility.
She advised investors to keep a cool head, as the new information on gold revaluation does not change fundamentals and this is just a psychological milestone, not a policy change.
Source: https://vietnamnet.vn/kho-vang-lon-nhat-the-gioi-dat-1-000-ty-usd-vi-sao-my-bo-quen-2448989.html
![[Photo] Dan Mountain Ginseng, a precious gift from nature to Kinh Bac land](/_next/image?url=https%3A%2F%2Fvphoto.vietnam.vn%2Fthumb%2F1200x675%2Fvietnam%2Fresource%2FIMAGE%2F2025%2F11%2F30%2F1764493588163_ndo_br_anh-longform-jpg.webp&w=3840&q=75)
Comment (0)