The U.S. has the world’s largest gold reserves—worth $1 trillion at market rates. But repricing that hoard ‘would backfire in a big way,’ analyst says

The United States holds the world's largest gold reserves, valued at over $1 trillion if priced at current market rates of around $4,000 per ounce. However, experts caution that repricing such a massive gold hoard could have severe consequences. The Treasury Department's official valuation of U.S. gold at $42.22 per ounce since 1973 means the reserves are only worth about $11 billion on paper.

While there have been discussions about monetizing the asset side of the U.S. balance sheet, including the possibility of revaluing gold, the idea has been deemed unlikely to succeed. Analysts argue that a sudden influx of $1 trillion would likely cause inflation to worsen and potentially trigger geopolitical turmoil or a fiscal crisis.

Despite these concerns, other nations have revalued their gold reserves in the past, with varying outcomes. The Federal Reserve notes that while revaluation can help reduce a country's debt burden in exceptional fiscal circumstances, it may not fully address broader structural challenges.