Why Government Gold Hoards Cost Taxpayers Billions

The Fiscal Policy Podcast with Fexingo: Government Budgets, Stimulus, and Public Spending · Jun 21, 2026 · 8m · transcript

The U.S. government holds over 8,000 tons of gold in places like Fort Knox and West Point, worth roughly $500 billion at market prices. But because the Treasury values it at a fixed statutory price of $42.22 per ounce from 1973, the balance sheet shows just $11 billion. This episode explores how that accounting fiction hides a massive unrealized asset, costs taxpayers in forgone interest, and distorts fiscal reporting. Lucas walks through the history of the Gold Reserve Act of 1934, the 1973 revaluation, and the decades-long debate over whether to sell or revalue the gold. Luna questions why…