The U.S. government's official "book value" for gold is indeed $42.22 per troy ounce, a statutory price set by law since 1973 that does not fluctuate with the daily market price. While the market value of gold is currently much higher—around $3,300 per ounce—the government maintains this low book value for its substantial gold reserves, which affects its balance sheet and has implications for discussions about revaluing the holdings.
Why the Book Value is $42.22 per ounce
Why the Book Value is $42.22 per ounce
- Statutory Price:
In 1973, the official price of gold was raised to $42.22 per ounce, and this statutory price has been maintained by law ever since, regardless of market fluctuations.
- Historical Context:
This price was established in the post-Nixon era, after the U.S. dollar was taken off the gold standard.
- Balance Sheet Item:
For accounting purposes, the U.S. Treasury and the Federal Reserve value their gold holdings at this official price, which gives a total book value of approximately $11 billion for the nation's reserves.
- Market Value is Higher:
The market price of gold fluctuates daily and, as of August 2025, is around $3,300 per ounce, significantly higher than the book value.
- Significant Difference:
The difference between the market value (over $861 billion) and the book value ($11 billion) for the U.S. gold reserves is immense, representing a large "unrealized" or "unaccounted for" value.
- Funding:
A decision to revalue the gold holdings to market prices would create a massive windfall of unrealized value, potentially allowing the government to reduce national debt or fund new initiatives without new taxes or borrowing.
- Market Impact:
Such a revaluation would also be a significant market event, potentially signaling a renewed importance for gold and impacting its price and global financial markets.
