President Donald Trump will inspect Fort Knox’s gold reserves personally, escalating a controversy stoked by tech billionaire Elon Musk that observers say masks deeper political maneuvering around US fiscal policy.
“We’re going to open up the doors. I’m going to see if we have gold there,” Trump told Republican governors at a Washington reception on Thursday, responding to speculation initiated by Musk on X.
Musk, who serves as a special advisor to Trump’s Department of Government Efficiency, questioned the security of America’s gold reserves earlier last week. “Who is confirming that gold wasn’t stolen from Fort Knox?” Musk claimed. “That gold is owned by the American public!”
Treasury Secretary Scott Bessent rebuffed these claims, confirming that annual audits verify all 147.3 million ounces remain secure in the Kentucky facility. The Fort Knox holdings represent roughly half of America’s total gold reserves, currently valued at $770 billion at market prices.
This new controversy, like many of Musk’s unfounded claims, may just be political theater. They may be positioning it as a precursor to tackling the revaluation of US gold reserves. The book value of the reserves remains at the Nixon-era price of $42.22 per ounce, while current market rates are around $2,950. This price was set in the 70s as an effort to curb inflation by weakening the dollar.
Revaluing gold could extend the Treasury’s ability to pay its bills, according to TD Securities analysts. The move would push the “X date” — or when the Treasury runs out of cash — from August to early 2026, providing breathing room for debt ceiling negotiations.
Related:
“A revaluation of the gold can technically provide the Treasury with additional cash and could have significant near-term market implications if Congress decides to pursue this policy,” strategists at TD Securities wrote in a Thursday report.
However, the total value of America’s gold reserves pales in comparison to the nation’s $36.22 trillion debt. “It’s a drop in the bucket,” said George Milling-Stanley, chief gold strategist at State Street Global Advisors. “The notion we might revalue or sell our gold and pay our debt has come up from time to time but there’s nowhere near as much gold in our reserves to do that.”
Three Republican House members introduced legislation in 2023 to revalue gold at current prices, but the bill’s prospects remain unclear. Any change to the official gold price would require an act of Congress.
Information for this story was found via Barron’s, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
