Historian: Gold Revaluation Profits Would Benefit Washington, Not Private Holders

The United States continues to record its gold reserves at the statutory price of $42.2222 per ounce on official books, even though the market price exceeds $4,050. Total holdings of 261.5 million ounces create a gap of more than $1 trillion versus current market valuations.

Economic historian Phillip Magness argues that any revaluation would primarily benefit the federal government, citing the 1930s when Roosevelt forced citizens to surrender gold and later raised the official price, directing gains to the Exchange Stabilization Fund.

Established in 1934, the fund remains active and was recently used for yen market interventions. Periodic proposals to update the gold valuation have not advanced, as they would merely adjust Treasury accounts without involving private holders.