Marking to market would result in an immediate “windfall” without the need for further debt or asset sales, increasing the book value of America’s gold assets from $11 billion to over $1 trillion.
Is the unprecedented increase in gold a hedge or a covert attempt to help America’s debt crisis?
Indian financial experts are debating the surge in gold prices to ₹1.2 lakh per 10 kilos, but is it as simple as it looks?
A LinkedIn post commemorating gold’s 649x comeback since 1970 spurred further in-depth conversation on the true factors for the metal’s current boom.
According to one argument, the United States could be getting ready to revalue its gold holdings in order to counteract its soaring debt.
According to senior wealth adviser Ashis Sengupta, “none you have notion why gold surge.” The rally may be related to the fact that the United States still records its gold at a price of $42.22 per ounce on the Federal Reserve’s books, which was established in the early 1970s.
Even a 10x adjustment might wipe away a trillion dollars in debt, according to precious metals tracker Ashish U., although he cautioned about possible repercussions. He wrote, “It risks a dollar crash… inflation would rise.”
“It is not 10x… 100x,” Sengupta said, arguing that a higher price for gold would not inevitably devalue the currency. “The mechanics of dollars are different. The dollar will continue to be strong if gold gains strength.
Background: Although gold prices surpass $3,000 per ounce in 2025, the official U.S. value stays at $42.22. Marking to market would result in an immediate “windfall” without the need for further debt or asset sales, increasing the book value of America’s gold assets from $11 billion to over $1 trillion. In the face of massive deficits, some financial analysts have referred to it as a “nuclear option” to increase U.S. sovereign credit.
India is stepping up its own gold game in the meanwhile. 880 tons, the Reserve Bank of India’s largest-ever holdings, now account for 12.5% of foreign reserves, up from 9% a year earlier. Only last year did more than 100 tons return from abroad. Demand for weddings and celebrations continues to fuel 750–900 tons of imports annually.