Could Fort Knox hold the key to the next gold price explosion? Treasury dismisses revaluation of the yellow metal, but markets smell opportunity
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Revaluation could mean big things for gold prices
While US Treasury Secretary Scott Bessent had ruled out repricing gold reserves, one Wall Street economist has said it could push gold prices even higher, reported Fortune. Francisco Blanch, Bank of America Securities' head of commodities research, outlined how even if revaluing gold is merely an «accounting exercise,» it might be a game-changer for the market, as per the report.
According to a Bloomberg TV interview, Blanch said that gold revaluing will show that it's not merely an ancient relic anymore, but a vital asset which central banks are again seriously considering. He claimed that «now even the biggest central bank of them all is taking a renewed interest in gold,» as quoted by Fortune.
A look at the numbers
According to Fortune, the US Treasury has approximately 261.6 million troy ounces of gold, still worth the 1970s rate of $42.22 per ounce, and thus a book value of approximately $11 billion. However, with gold currently trading at around $2,950 per ounce, the reserves would be worth more than $750 billion, as per the report. That's a huge difference, and the revaluation would have a significant effect on the Federal Reserve's balance sheet.
Trump's interest in Fort Knox
US president Donald Trump has recently said that he may go to Fort Knox with tech billionaire Elon Musk to ensure
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