What You Need to Know About a Possible U.S. Gold Revaluation

Since 1973, America’s gold has been officially valued at just $42 per troy ounce—but that may soon change.

When Donald Trump won the U.S. presidential election on November 5th, gold and silver immediately plummeted—down 9% and 15%, respectively—as many investors soured on precious metals. They believed a Trump presidency and the promise of "Making America Great Again" signaled an era of prosperity, stability, and fiscal prudence, eliminating the need for crisis hedges like gold and silver. Of course, I had been adamant that his victory was no reason to turn bearish on precious metals. I even pointed to his first term, during which gold soared an impressive 83%.

Following this mindset, they eagerly poured into the riskiest assets, chasing overinflated tech stocks and speculative cryptocurrencies like Bitcoin, Dogecoin, and even Fartcoin—a reckless move, as I warned in detail in my December report. Yet, how wrong they were! Gold not only erased its election-related losses but has surged to a new record—now roughly $100 above its pre-election high in late October—while silver is close behind.

Gold and silver have surged since Trump took office for several key reasons, many of which I’ve covered extensively. These include the potential impact of tariffs on imported precious metals and a massive inflow of gold and silver into the U.S. ahead of those tariffs, which is draining London’s vaults. Additionally, soaring inflation expectations and mounting fears of a recession alongside persistent inflation have fueled concerns about stagflation—a scenario historically very bullish for precious metals. I'm not going to lie—it’s a highly confusing and chaotic time, with countless crosscurrents and major developments as Trump rolls out his policies and reshapes the government.

Another potential reason for gold’s surge is emerging: the very real possibility that the Trump administration could revalue America’s gold—a move that aligns with its goal to "Make America Great Again." The U.S. federal government officially holds 8,133 metric tons of gold. What’s striking, however, is that since 1973, it has remained valued on the books at just $42 per troy ounce, giving it a paper worth of only about $11 billion. If the official reserve figure is accurate, the U.S. holds the world’s largest gold stockpile by a wide margin, with Germany trailing in second place at 3,352 metric tons.

But here’s the thing: with gold now trading at $2,900 per ounce, revaluing America’s gold reserves to market prices would push its worth to approximately $760 billion—creating a staggering $749 billion windfall. This aligns with the February 3rd remarks by newly appointed Treasury Secretary Scott Bessent, who is known for his pro-gold stance and personal investments in the metal.