Central Banks Could Be Planning Something Huge for Gold Investors
The comments below are an edited and abridged synopsis of an article by Peter Reagan
America’s reported 261.5 million ounces of gold has a stated value of $11 billion, but its actual market value is $512 billion. That’s a big difference! (Although less than May 2023’s federal spending.)
The point is this: By realizing the actual market value of gold reserves, central banks could realize the gains on the value of their gold reserves. The capital thus created would be used to offset sovereign debt and maybe even for writing off liabilities.
Keep in mind that most Western central banks obtained most of their gold bullion reserves during the Bretton-Woods era, when gold was $20—$40 per ounce. So the US example of a 45x increase in the actual value of a nation’s gold reserve is not that unusual.
So why aren’t central banks profit-taking now that they’re massively indebted, insolvent for all intents and purposes? The official explanation is that central banks do not consider gold to be money.
Reagan discusses accounting tricks and central bank gold ‘revaluation’; gold is great, but don’t overlook silver; and here’s why BlackRock likes gold right now.