Overview

• The Fed’s Aug. 1 research note “Official Reserve Revaluations: The International Experience” outlines how five countries—including Germany, Italy and South Africa—used gold revaluations to fund debt reduction or cover central bank losses.
• The U.S. Treasury’s 261.5 million ounces of gold are book-valued at $42.22 per ounce but would be worth over $750 billion at current market prices after an accounting adjustment.
• A potential U.S. revaluation would retire the existing $11 billion gold certificate, transfer reserves to the Fed at a new official price, then return the gold to credit newly created funds.
• Legislation from Senator Cynthia Lummis and proposals backed by President Trump envision using revaluation proceeds to establish a sovereign wealth fund or a Strategic Bitcoin Reserve.
• Treasury Secretary Scott Bessent has insisted there are no plans to revalue the gold and critics warn that such an accounting maneuver could stoke inflation and weaken Federal Reserve independence.