US Gold Reserves Soar To $1 Trillion As Prices Skyrocket Past $3,830 An Ounce—But Global Share Hits 90-Year Low

The market value of the United States’ vast gold reserves topped $1 trillion mark for the first time on Monday. This comes as the gold price is experiencing a powerful rally, nearing $3,840 per ounce.

The staggering valuation contrasts with the fact that, despite having the world's biggest gold stash, America’s strategic share of global gold reserves has fallen to a 90-year low when compared to other countries.

$1 Trillion In Mark-To-Market But Still At $11 Billion As Of 1973

The spot price hit a new all-time high of $3,831.33 before settling around $3,817, rising nearly 44% over the last year.

According to a Bloomberg report, this market valuation of over a trillion dollars is different from its value on the U.S. Treasury’s books, which remains fixed at just over $11 billion based on a statutory price of $42.22 an ounce set in 1973.

US Gold Reserves Are At A 90-Year Low

While the value of America's existing stockpile soars, its global influence in the gold market has diminished.

According to a Benzinga report, the U.S. has largely sat on the sidelines while central banks in countries like China, Russia, and India have been on a consistent buying spree, particularly since the 2008 Global Financial Crisis.

This aggressive accumulation by other nations has caused the U.S. portion of the total global reserve pie to shrink to its lowest level in nine decades, as per the Bloomberg data shared by Otavio Costa, a macro strategist at Crescat Capital.

At one point, the United States held over 50% of the world's gold reserves, highlights Costa. Today, that figure has dwindled to just 20%.

This divergence has led some experts to question America’s passive strategy. Costa also notes, it is "only a matter of time before US policymakers are forced to rethink this stance."

See Also: US Gold Reserves Hit 90-Year Low While Central Banks Worldwide Load Up On Yellow Metal: ‘Only A Matter Of Time’ To Rethink This Stance, Says Expert

Nowhere Close To The Golden Fever

Additionally, a key survey of institutional investors indicates that a speculative frenzy has not yet taken hold, suggesting the rally could have more room to run.

This cautious sentiment is highlighted by data from a recent Bank of America Global Fund Manager Survey, which shows that 39% of fund managers still have zero allocation to the precious metal in their portfolios.

Price Action

Gold Spot US Dollar rose 1.52% to hover around $3,817.57 per ounce. Its last record high stood at $3,831.33 per ounce.

Here are a few gold and gold miners linked exchange-traded funds that investors could consider investing in amid the price rally.

The SPDR S&P 500 ETF Trust (NYSE: SPY) and Invesco QQQ Trust ETF (NASDAQ: QQQ), which track the S&P 500 and Nasdaq 100 indices, respectively, rose in premarket on Monday. The SPY was up 0.55% at $665.49, while the QQQ rose 0.75% to $600.45, according to Benzinga Pro data.

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