Phased Gold Buying & Revaluation: A More Realistic Approach

If the US wanted to increase its gold holdings to 17% of debt ($6.12 trillion) without causing an immediate market shock, it would need a long-term, phased accumulation strategy—possibly combined with an official gold revaluation. Here’s how this could play out:


Option 1: Gradual Phased Buying (10-20 Year Plan)

Assumptions:

Projected Effects:

Year Gold Bought (tons) Cumulative US Holdings (tons) Estimated Gold Price (USD/oz)
2025 1,500 9,633 $3,500 - $4,000
2030 1,500/yr (7,500 total) 16,133 $6,000 - $8,000
2035 1,500/yr (15,000 total) 23,133 $10,000 - $12,000
2040 1,500/yr (22,500 total) 30,633 $15,000 - $20,000

Key Implications:

Less market disruption than a sudden buy.

Allows miners to expand production (though only +1-3% yearly).

Still requires buying ~50% of global supply, crowding out private demand.

Prices still rise 5-7x over 15 years.


Option 2: Gold Revaluation (Instant "Accounting Trick")

Instead of buying gold, the US could revalue its existing reserves at a higher price to meet the 17% debt-backing goal.

How It Works: