# Selling the US gold reserves to pay off some of the national debt? **URL:** \ **Category:** Factual Questions\ **Created:** [January 22, 2009, 10:24pm UTC](https://boards.straightdope.com/t/selling-the-us-gold-reserves-to-pay-off-some-of-the-national-debt/482533 "2009-01-22T22:24:49Z")\ **Posts on this page:** 8\ **Page:** 1
**Author:** ![BrandonR](https://avatars.discourse-cdn.com/v4/letter/b/779978/32.png) [@BrandonR](https://boards.straightdope.com/u/BrandonR)\ **Post date:** [January 22, 2009, 10:24pm UTC](https://boards.straightdope.com/t/selling-the-us-gold-reserves-to-pay-off-some-of-the-national-debt/482533/1 "2009-01-22T22:24:49Z")
While watching a show on Fort Knox today, they said there’s likely over $100 billion in gold held there in the bullion depository. I know there’s even more gold in the Federal Reserve bank (albeit most of it doesn’t belong to the US). Would it be possible or feasible to sell the nation’s gold in order to pay off a small part of the national debt? Granted, I know next to nothing about the economy (my knowledge is limited to supply and demand), but what exactly is the use of massive gold reserves sitting in a cell, especially when this country has a fiat currency that isn’t reliant upon the gold in the first place? Hopefully someone will be able to correct my undoubtedly faulty logic. ---
**Author:** ![mks57](https://avatars.discourse-cdn.com/v4/letter/m/b9bd4f/32.png) [@mks57](https://boards.straightdope.com/u/mks57)\ **Post date:** [January 23, 2009, 2:37am UTC](https://boards.straightdope.com/t/selling-the-us-gold-reserves-to-pay-off-some-of-the-national-debt/482533/2 "2009-01-23T02:37:42Z")
You could look at it as a “rainy day fund” for extreme disasters that might also destroy the monetary system. ---
**Author:** ![running\_coach](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/running_coach/32/15836_2.png) [@running\_coach](https://boards.straightdope.com/u/running_coach)\ **Post date:** [January 23, 2009, 2:46am UTC](https://boards.straightdope.com/t/selling-the-us-gold-reserves-to-pay-off-some-of-the-national-debt/482533/3 "2009-01-23T02:46:24Z")
I think the national debt is around 10 trillion. 100 billion is 1/10 of 1% of that. ---
**Author:** ![Telemark](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/telemark/32/372_2.png) [@Telemark](https://boards.straightdope.com/u/Telemark)\ **Post date:** [January 23, 2009, 3:13am UTC](https://boards.straightdope.com/t/selling-the-us-gold-reserves-to-pay-off-some-of-the-national-debt/482533/4 "2009-01-23T03:13:47Z")
There are approximately 147 Million ounces ([http://www.globalsecurity.org/military/facility/fort-knox-depository.htm](http://www.globalsecurity.org/military/facility/fort-knox-depository.htm)) at approximately $855/oz ([http://www.monex.com/monex/controller?pageid=prices](http://www.monex.com/monex/controller?pageid=prices)). $124,950,000,000 The current US National Debt is $10,629,139,076,968.91 - [http://www.brillig.com/debt\_clock/](http://www.brillig.com/debt_clock/) For a total of 1.1755% of our debt. ---
**Author:** ![Little\_Nemo](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/little_nemo/32/3120_2.png) [@Little\_Nemo](https://boards.straightdope.com/u/Little_Nemo)\ **Post date:** [January 23, 2009, 3:49am UTC](https://boards.straightdope.com/t/selling-the-us-gold-reserves-to-pay-off-some-of-the-national-debt/482533/5 "2009-01-23T03:49:07Z")
You’d never get a hundred billion for the gold. Dumping that much gold on the world market would make the price plummet. ---
**Author:** ![Tom\_Tildrum](https://avatars.discourse-cdn.com/v4/letter/t/e95f7d/32.png) [@Tom\_Tildrum](https://boards.straightdope.com/u/Tom_Tildrum)\ **Post date:** [January 23, 2009, 6:04am UTC](https://boards.straightdope.com/t/selling-the-us-gold-reserves-to-pay-off-some-of-the-national-debt/482533/6 "2009-01-23T06:04:54Z")
> [@Little\_Nemo](#): > > You’d never get a hundred billion for the gold. Dumping that much gold on the world market would make the price plummet. I dunno; I keep seeing these ads on TV from companies who will buy one’s unwanted gold (old jewelry, for instance). Tim Geithner might want to call that number. ---
**Author:** ![Bootis](https://avatars.discourse-cdn.com/v4/letter/b/e8c25b/32.png) [@Bootis](https://boards.straightdope.com/u/Bootis)\ **Post date:** [January 23, 2009, 7:39am UTC](https://boards.straightdope.com/t/selling-the-us-gold-reserves-to-pay-off-some-of-the-national-debt/482533/7 "2009-01-23T07:39:43Z")
> [@runner pat](#): > > I think the national debt is around 10 trillion. 100 billion is 1/10 of 1% of that. I think it’s 1%, though thats still a drop in the bucket. ---
**Author:** ![rbroome](https://avatars.discourse-cdn.com/v4/letter/r/838e76/32.png) [@rbroome](https://boards.straightdope.com/u/rbroome)\ **Post date:** [January 23, 2009, 1:19pm UTC](https://boards.straightdope.com/t/selling-the-us-gold-reserves-to-pay-off-some-of-the-national-debt/482533/8 "2009-01-23T13:19:27Z")
> [@BrandonR](#): > > While watching a show on Fort Knox today, they said there’s likely over $100 billion in gold held there in the bullion depository. I know there’s even more gold in the Federal Reserve bank (albeit most of it doesn’t belong to the US). Would it be possible or feasible to sell the nation’s gold in order to pay off a small part of the national debt? > > Granted, I know next to nothing about the economy (my knowledge is limited to supply and demand), but what exactly is the use of massive gold reserves sitting in a cell, especially when this country has a fiat currency that isn’t reliant upon the gold in the first place? Hopefully someone will be able to correct my undoubtedly faulty logic. I believe the gold is simply symbolic. It attaches a bit of “security” to the financial system. Of course it doesn’t really have any effect, just as selling it all off wouldn’t have any effect, but for those people who care, the fact that the the US Gov’t still feels it important to hold on to the gold strengthens the importance of gold. All that said, selling gold wouldn’t help the US Gov’t or country, but dumping all that gold onto the market would negatively impact many private entities and gold sellers. So selling it off would hurt lots of people and not help anyone. So why do it? I wouldn’t want the Gov’t to spend any significant amount of money on the gold reserve, but since the vault is already built and the gold is already there, leaving well enough alone is a good choice.