Gold prices surged to an all-time high of $2,940 per ounce last Thursday, pushing its market cap above $20 trillion for the first time ever. The price spike comes amid growing trade tensions between the U.S. and Europe, which have fueled concerns of a global economic slowdown. While demand for gold as a safe-haven asset is a significant factor behind the price surge, there’s another key potential catalyst that could send gold prices even higher: the revaluation of U.S. gold reserves.
The U.S. Holds the World’s Largest Gold Reserves
The United States holds the largest gold reserves in the world, with a total of 8,133 metric tons. However, the value of these reserves has remained fixed at just $42 per ounce since 1973, which places its total value at around $11 billion. This long-standing valuation raises the question: What would happen if the U.S. were to revalue its gold reserves based on today’s market price?
At today’s gold price of around $2,900 per ounce, revaluing the U.S. reserves would result in a total value of $760 billion—an incredible $749 billion increase. This windfall could provide the U.S. government with several options, such as selling a portion of its gold, reducing national debt, or even funding a Sovereign Wealth Fund (SWF). The idea of using gold reserves to strengthen the U.S. economy and finances has gained traction in recent years.
Will the U.S. Revalue Its Gold Reserves?
While some advocate for revaluing the gold reserves, Treasury Secretary Scott Bessent has downplayed the possibility, stating that it is “not what [he] had in mind.” However, the fact that this discussion is happening underscores the increasing importance of gold as both a financial asset and a geopolitical tool.
Before any revaluation can take place, the U.S. must ensure the legitimacy and presence of its gold reserves—a topic that has raised questions for decades. The U.S. Bullion Depository at Fort Knox, where much of the nation’s gold is stored, has only been opened to non-authorized personnel a few times in history. The last major inspection was in 2017 when a delegation, including Senator Mitch McConnell and Treasury Secretary Steven Mnuchin, visited the facility.
Elon Musk’s Push for Fort Knox Transparency
In a bold move, tech mogul Elon Musk announced plans to conduct an in-person audit of Fort Knox’s gold reserves. Through his initiative, the Department of Government Efficiency (DOGE), Musk has expressed concern over the transparency of the U.S. gold stockpile. In a tweet on February 17, 2025, Musk raised the question: “Who is confirming that gold wasn’t stolen from Fort Knox? We want to know if it’s still there.”
While the legitimacy of the reserves is not in doubt for most, Musk’s call for transparency—along with support from former President Donald Trump—could boost confidence in the U.S. financial system. If the audit confirms the reserves, it could enhance trust in the U.S. government’s economic stability. Conversely, if discrepancies are found, it could trigger widespread shockwaves through global markets, further impacting gold prices.
The Role of Central Banks in Gold Buying
Central banks around the world have been increasingly bullish on gold, purchasing over 1,000 tons of the metal for the third consecutive year in 2024, according to the World Gold Council (WGC). Among the biggest buyers were the National Bank of Poland (NBP), which added 90 tons to its reserves, and the People’s Bank of China (PBoC), which purchased 5 tons in early 2025, bringing its total holdings to 2,285 tons.
The increased central bank demand for gold reflects broader global trends that could further support the case for the U.S. to revalue its gold reserves. As central banks continue to stockpile gold amid economic uncertainty, the value of gold as a hedge against inflation and financial instability is becoming more evident.
Conclusion: Could Gold Prices Soar Even Higher?
As trade tensions and economic concerns continue to rattle global markets, the value of gold is expected to remain high. The potential revaluation of the U.S. gold reserves could act as a game-changer, propelling prices even further. Whether or not this revaluation happens remains uncertain, but one thing is clear: gold is becoming an increasingly important asset in the global financial landscape, and its role as both a safe-haven investment and a geopolitical tool will only continue to grow.
For investors, the ongoing discussions around gold’s future, the U.S. gold reserves, and the increasing central bank demand could signal more growth for the precious metal in the years to come.
