The ratio of US gold reserves to federal debt has fallen to a historic low of 3%.
Odaily reported that The Kobeissi Letter posted on X, stating that the ratio of U.S. gold reserves to government debt is at a historic low. Currently, gold reserves account for only 3% of U.S. federal debt, one of the lowest levels on record. Although the U.S. holds 8,133.5 tons of gold—the largest reserve in the world—and gold prices have risen to historic highs, this ratio remains low. In comparison, the ratio was about 18% in 1980, six times the current level. To reach the reserve ratio of 1980, gold prices would need to rise by 400% to $26,000 per ounce. In the 1940s, the ratio of gold reserves to federal debt exceeded 50%. To match the ratio of the 1940s, gold prices would need to increase by 1,340% to about $75,000 per ounce. The gold reserve data highlights the growth in the scale of U.S. debt.
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