Fidelity Strategist Warns Repricing U.S. Gold at Market Rates Would 'Backfire in a Big Way'

Repricing the U.S. government's gold reserves at market value to ease fiscal strain would backfire, Fidelity Investments global macro director Jurrien Timmer warned, citing likely dollar weakness and higher Treasury term premiums. The U.S. holds about 261.5 million ounces of gold—more than double No. 2 holder Germany—but it is carried on the books at $42.22 an ounce, a price set by Congress in 1973 and unchanged since. That values the hoard at just over $11 billion; at current prices near $4,000 an ounce, it would be worth roughly $1 trillion. Talk of monetizing the asset has circulated since Treasury Secretary Scott Bessent floated creating a sovereign wealth fund and referenced the gold stock's market value, though the administration later said repricing is not under serious consideration. A congressional bill to establish a strategic bitcoin reserve also proposed repricing the holdings. Timmer said the move would require congressional approval and, by injecting $1 trillion, stoke already elevated inflation while raising the term premium on Treasury yields. A Federal Reserve economist's note last August said Germany, Italy, Lebanon, Curacao and St. Maarten, and South Africa have revalued reserves, but such proceeds may not address larger structural challenges.