The United States Treasury now controls the world’s most valuable gold hoard, worth more than $1 trillion at market prices, after bullion rallied to fresh all-time highs of $3,824.50 per ounce on Monday. Prices have climbed 45% so far in 2025, as investors pile into the metal on fears of inflation, trade wars, and geopolitical instability.
Yet on paper, the Treasury still lists its holdings at just over $11 billion, because the official valuation remains locked at $42.22 per ounce, a rate set by Congress in 1973. That discrepancy makes America’s balance sheet look frozen in a 1970s time capsule while the real market value rockets past the trillion-dollar mark.
The Treasury holds about 261.5 million ounces of gold, more than half of it in deep storage at Fort Knox, with the rest split between West Point, Denver, and an underground vault beneath the New York Federal Reserve.
Why Gold Prices Are Exploding
The rally has been fueled by multiple forces:
- Trade wars and tariffs: Escalating Trump-era tariffs on goods, chips, and now even cultural industries have driven investors into safe havens.
- Federal Reserve policy: Markets are pricing in looser monetary conditions as the Fed shifts back toward rate cuts, weakening the dollar and boosting gold demand.
- ETF inflows: Exchange-traded funds like SPDR Gold Shares (GLD) have seen major inflows as both institutional and retail investors chase record bullion.
- Geopolitical tensions: Wars in the Middle East, global supply chain disruptions, and debt ceiling fears in Washington have all intensified the flight to safety.
This surge has transformed gold from a hedge into one of the best-performing assets of 2025, outpacing stocks, bonds, and crypto.
Calls to Revalue the Reserves
Speculation erupted earlier this year when Treasury Secretary Scott Bessent hinted at the idea of marking America’s gold reserves to market. Analysts estimated such a move could unlock nearly $1 trillion in fiscal space, covering about half of the nation’s $1.97 trillion budget deficit through August.
But Bessent quickly backtracked, saying the chatter was unfounded and that no formal plan exists to revalue the reserves. Economists warn that revaluation could flood the financial system with liquidity and clash with the Fed’s tightening strategy.
Other countries, including Germany, Italy, and South Africa, have revalued their reserves in past decades. The US remains an outlier, sticking to its 1973 formula despite the gold market’s exponential growth.
Market Winners and Losers
The trillion-dollar milestone has direct implications for financial markets:
- Winners:
- SPDR Gold Shares (GLD) — inflows are surging as investors seek exposure to bullion.
- Newmont (NEM) and Barrick Gold (GOLD) — higher spot prices boost miner margins and investor interest.
- Central banks — particularly emerging markets increasing reserves, now see validation for diversifying away from the dollar.
- Losers:
- Dollar assets — a weaker greenback is fueling the rally, adding pressure to dollar-denominated debt.
- Treasury bonds — rising gold demand reflects doubts about Washington’s fiscal stability.
- Import-heavy economies — nations with high gold demand for jewelry, like India, face higher costs.
Conspiracies and Fort Knox
Despite tight security, America’s gold reserves continue to spark conspiracy theories. Earlier this year, both President Trump and Elon Musk publicly questioned whether Fort Knox actually contains all the gold reported. Trump said: “We’re going to go to Fort Knox — the fabled Fort Knox — to make sure the gold is there. If the gold isn’t there, we’re going to be very upset.”
Such remarks have amplified public curiosity about the vaults and underscored how politically sensitive gold remains as a symbol of national wealth.
The US gold stash crossing $1 trillion is more than just a symbolic milestone — it reflects both the global flight to safety and Washington’s outdated accounting system. Whether or not the Treasury ever revalues its holdings, bullion’s rally signals that investors are bracing for higher inflation, persistent geopolitical shocks, and doubts about fiscal stability. For miners, ETFs, and central banks, it’s a golden era — but for Washington, it’s a reminder that markets see America’s reserves as far more valuable than its official books admit.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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