As governments around the world grapple with mounting debt, the surge in the price of gold might very well continue long term. One of the most intriguing reasons for a long term gold bull run could be a simple “accounting trick” the US government is now openly considering. It’s not about selling their gold or finding new mines; it’s about revaluing its vast reserves to create a massive, one-off windfall.
Why the US Might Revalue its Gold: Short Answer – National Debt
To understand the US government potentially revaluing its gold, imagine a family that bought a valuable painting decades ago for a very low price. On their balance sheet, the painting is still listed at the original price, even though its market value has soared. A “revaluation” would be the family simply updating their books to reflect the painting’s current, much higher market value.
In the same way, the US government holds a vast amount of gold, but officially values it at an outdated price of just $42.22 per troy ounce. Revaluing it means changing that official price to its current market price, which is much higher.
With US national debt at all-time highs, this “revaluation profit” would be a handy way to pay off a portion of the debt without raising taxes or borrowing more money. A bold move perhaps, but when you consider that the US now spends more on paying the interest on their national debt than they do on defense, it doesn’t sound that far-fetched.
The Precedent for Gold Revaluation
The US Treasury holds the world’s largest gold reserves, but since 1973 this gold has been valued at $42.22 per troy ounce. Today, the current market price of gold is over 80 times that amount. This discrepancy creates a massive opportunity. A simple executive order to revalue the gold to its market price could instantly add hundreds of billions of dollars to the government’s balance sheet in an instant.
And this isn’t some outlandish theory, it’s a move with a clear precedent. In 1934, at the height of the Great Depression, President Franklin D. Roosevelt did exactly this. He took the US off the gold standard and, through the Gold Reserve Act, officially raised the price of gold from $20.67 to $35 per ounce. This provided the government with a significant one-off “profit” that was used to fund economic stimulus.
What do the experts think?
Many financial experts and even think tanks are weighing in on the possibility of the US government doing another revaluation of their gold reserves. A recent Federal Reserve report examined how other countries have used gold revaluations to address fiscal stress. This report could very well be a signal that this idea is now a plausible option on the table for the Trump administration as a way to deal with the national debt crisis.
How a Revaluation Could Trigger a Gold Price Surge
If the US were to revalue its gold, it would trigger a higher price floor for gold. The move would flood the financial system with new liquidity and accelerate the devaluation of the dollar and other fiat currencies like the pound sterling. As a time-tested hedge against inflation, the price of gold would skyrocket.
The TallyMoney Difference
For us in the UK, this type of possibility is a powerful reminder of why we need to move beyond traditional, fiat-based savings. TallyMoney offers a simple, effective solution. While others are busy debating whether a government will devalue its currency, you can be quietly building your wealth in a way that is insulated from these political and financial games.
When you use TallyMoney, your money is converted into physical gold, which is securely held in professional vaults. Your TallyMoney debit Mastercard allows you to spend your gold as easily as you would a fiat currency, giving you the best of both worlds: a real, tangible asset that protects your purchasing power and the convenience of modern banking.
You don’t need to predict a US government policy or time the market perfectly. You simply need to get out of a system that’s increasingly unstable and into one that’s stood the test of time.
