The United States’ gold reserves have officially crossed the $1 trillion mark in market value for the first time, propelled by a 45% surge in gold prices this year to a record $3,824.50 per ounce as of September 29, 2025. This milestone—more than 90 times the official book value of $11 billion—highlights the Treasury’s 8,133 tonnes of bullion (261.5 million ounces) stored primarily at Fort Knox and other vaults, making it the world’s largest official gold holding. The rally, fueled by trade tensions, geopolitical risks, and Fed rate cuts, has sparked discussions on revaluing reserves to unlock nearly $990 billion for the federal budget deficit.
For investors, economists, and policymakers, this surge underscores gold’s enduring safe-haven status in an era of fiscal strain and uncertainty, with the US deficit hitting $1.973 trillion through August 2025. While the official valuation remains frozen at $42.22 per ounce (set in 1973), the market reality could cover half the deficit if revalued—a debate gaining traction amid global central bank buying. Let’s examine the numbers, drivers, and potential policy shifts.
The $1 Trillion Milestone: From $11 Billion Book Value to Market Reality
The US Treasury’s gold stash—8,133 tonnes, or about 25% of global official holdings—has appreciated dramatically due to the 2025 price rally. At Monday’s peak of $3,824.50/oz, the 261.5 million ounces equate to over $1 trillion—90 times the $11.04 billion book value.
Valuation comparison:
| Metric | Value ($B) | Notes |
|---|---|---|
| Market Value (Sep 29, 2025) | 1,000+ | At $3,824.50/oz; 45% YTD rally |
| Book Value (Fixed) | 11.04 | $42.22/oz since 1973; unchanged since 1975 |
| Potential Revaluation Gain | ~990 | Could offset half of $1.973T FY25 deficit |
Over half the reserves (4,000+ tonnes) are at Fort Knox, with the rest in Denver, West Point, and the New York Fed.
Drivers of the Rally: Safe-Haven Surge in Turbulent Times
Gold’s 45% YTD climb to $3,824.50/oz—the highest since 2020—stems from a perfect storm of risks. Central banks added 1,037 tonnes in H1 2025, surpassing IMF holdings for the first time since 1967.
Major catalysts:
- Trade Wars and Tariffs: Trump’s 100% pharma tariffs and 50% on steel/aluminum sparked safe-haven buying.
- Geopolitical Tensions: Ukraine, Middle East conflicts, and US election volatility drove ETF inflows ($20 billion YTD).
- Fed Rate Cuts: Three cuts in 2025 lowered opportunity costs for non-yielding gold.
- Fiscal Worries: $1.973T deficit through August (highest since 2021) fueled debt fears.
Global reserves now total 36,344 tonnes, with India at 876 tonnes ($78 billion at spot).
Revaluation Debate: $990 Billion Windfall or Accounting Quagmire?
The trillion-dollar stash has reignited calls to mark reserves to market, unlocking $990 billion—half the FY25 deficit. Germany ($250 billion gain in 2017), Italy, and South Africa have revalued, per Fed notes.
Pros and cons:
| Argument For Revaluation | Argument Against |
|---|---|
| Covers 50% of $1.973T deficit; boosts balance sheet. | Volatility risk; fixed value stabilizes policy; no cash from non-sale assets. |
The Gold Reserve Transparency Act of 2025 mandates audits, amid conspiracy theories from Trump and Musk.
Conclusion: Gold’s $1 Trillion US Milestone – Safe Haven or Fiscal Savior?
The US gold reserves’ $1 trillion market value—up 45% YTD—affirms its safe-haven role amid deficits and tensions, 90x the book value. Revaluation could unlock $990 billion for the budget, but volatility cautions against it. As central banks hoard (36,344 tonnes globally), gold’s rally reshapes reserves’ role. bloomberg
