All of the gold owned by US is pocket change

[cashflo2u2]

If you can even believe this report. I calculate the current value of it to be about 247 billion based on this report that says the US owns 260 million ounces of gold.

Current Report: Gold Report: Publications & Guidance: Financial Management Service

With the numbers being tossed around these days this appears to be pocket change as I said.

[ziggy29]

Interesting. The GLD fund has a market cap of $31 billion today. Supposedly this ETF is backed by stored physical gold, but IF the value of all the gold in the world is $247B as you say, am I supposed to believe that this fund holds 1/8 of all the gold in the world?

[cashflo2u2]

No this report is all the gold owned by the US government, not all the gold (in a refined state) in the world.

[ziggy29]

Quote:

Originally Posted by cashflo2u2 No this report is all the gold owned by the US government, not all the gold (in a refined state) in the world.

Ah, I misread it. Duh, I iz ejumacaded...

[cashflo2u2]

Furthermore, all of the gold owned by the US would barely pay half of one year's interest on the federal debt (current running at about 450 billion a year).

[Lusitan]

Unfortunately, our biggest asset is our military power. I guess it's the global political version of the guns-and-ammo-are-better-than-gold theory.

[FIREdreamer]

Quote:

Originally Posted by Lusitan Unfortunately, our biggest asset is our military power. I guess it's the global political version of the guns-and-ammo-are-better-than-gold theory.

Yes and no IMO. Like a house, in order for our military power to remain a valuable asset, we need to keep throwing (a lot of) money at it... When the USSR crumbled politically and economically, its military might crumbled with it.