Friday, October 12, 2012

Gold!


The US Treasury reported on May 31, 2011 that US gold holdings amounted to 261,498,899 troy ounces.
Per the Federal Reserve website this gold is valued at roughly $42 per ounce for reporting purposes:
At $1770 per ounce(today's price roughly), US gold holdings would be worth $462.8 billion; however at the current "book value" of $42 an ounce used by the Federal Reserve the valuation would be only $11 billion.
Here's a 5 year price chart for gold (from goldprice.org):

The US should clearly raise its "book value" for its gold holdings to at least a three digit number; the current book number is absurdly low.

1 comment:

Stagflationary Mark said...

The US should clearly raise its "book value" for its gold holdings to at least a three digit number...

The Federal Reserve was given a mandate to keep prices stable and by God they are going to keep their promise (at least on paper), lol. ;)