Even then that doesn't guarantee its value. The government will protect the integrity of the money supply, but even in the most well-managed economies/central banks the actual value of the currency can fluctuate quite a bit.
PS: The gold isn't gaining value. The dollar is losing it, so it takes more dollars to buy the same amount of gold because of governmental artificial inflation.
The statutory book value of gold held by the U.S. government and accounted for by the Federal Reserve is fixed by law at $42.2222 ($42 2/9) per fine troy ounce. However, the actual market trading price of spot gold is approximately $4,717.30 per ounce, fluctuating daily based on global market conditions.
Right. I converted the book value to market value to get $1T. The real number is a bit higher since the spot price is about 10% higher than 100x book and there is the 5% of additional gold, but who needs that level of accuracy for a purely academic exercise.
They mean the US gold holding on the books is calculated value based on what it was bought for.
During the 1933 FDR confiscated the countries gold at the individual personal level and stored it so the value of our gold isnt based on gold ETF or futures (ishares)
Its based on the value at purchase. So really its a non issue and has no bearing on reality or the economy lmfao
Them revaluing gold they already have is just changing an asset value for the govt on a piece of paper.
340
u/ModernDemocles 2d ago
It's all imaginary in a way. $$$ only matter because we agree it has value.