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are U.S. gold reserves still valued at only $42 an ounce

HalfDimeHalfDime Posts: 445 ✭✭✭✭

are us gold reserves still valued at only $42 an ounce

U.S. gold reserves are still officially valued at only $42.22 per ounce, a price set in 1973 and unchanged since then. This "official" price is used for accounting purposes by the U.S. Treasury and the Federal Reserve, despite the market price of gold being around $3,300 per ounce as of 2025.

The outdated valuation means the U.S. government lists its gold holdings at about $11 billion, rather than the actual market value, which would be over $760 billion if revalued at current prices.

Any change to this valuation would require congressional approval, and despite periodic discussions about revaluation to reflect market reality, no action has been taken.

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Maybe it is time to update the price of gold?

Comments

  • derrybderryb Posts: 37,654 ✭✭✭✭✭

    Shortly after FDR confiscated gold, the government devalued the dollar by 41%, raising the price of gold from $20.67 to $35 per ounce. I haven't seen any later valuation since then. If it was raised to $42.22, when did that occur?

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  • HalfDimeHalfDime Posts: 445 ✭✭✭✭
    edited April 27, 2025 9:36AM

    The official value of U.S. gold reserves was raised to $42.22 per ounce in February 1973. This change followed earlier adjustments: after the end of the gold standard in 1971, the official price was first raised from $35 to $38 per ounce in December 1971, and then to $42.22 per ounce in February 1973, where it has remained ever since.

  • OverdateOverdate Posts: 7,157 ✭✭✭✭✭

    I'll take a wild gamble and bid $42.23! ;)

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  • Downtown1974Downtown1974 Posts: 6,995 ✭✭✭✭✭

    I was just listening to a podcast the other day and heard that $42 figure as well.
    I can’t remember if the last audit was over 50 years ago or if it was in the 1950s.

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