The proportion of U.S. gold reserves relative to federal debt has fallen to a historic low of 3%
Svmuu News The Kobeissi Letter posted on X, stating that the proportion of U.S. gold reserves relative 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. Despite the U.S. holding 8,133.5 metric tons of gold, the largest reserve globally, and gold prices rising to historic highs, this ratio remains low. In comparison, the ratio was about 18% in 1980, six times the current level. To reach the 1980 reserve level, gold prices would need to rise by 400%, reaching $26,000 per ounce. In the 1940s, gold reserves accounted for over 50% of federal debt. To match the 1940s ratio, gold prices would need to rise by 1,340%, reaching approximately $75,000 per ounce. The gold reserve data highlights the growth in the scale of U.S. debt.
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