US Gold Reserves as a Percentage of Federal Debt Fall to Historic Low of 3%

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Mars Finance News: The Kobeissi Letter on X platform stated 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. Although the U.S. holds 8,133.5 metric tons of gold, the largest reserve in the world, and gold prices have risen to historic highs, this ratio remains low. In comparison, in 1980, the ratio was about 18%, six times higher than now. To reach the 1980 reserve level, gold prices would need to increase 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. Gold reserve data highlights the growth of U.S. debt.

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