Here is an important reminder:

Today’s US federal debt is only about 3% backed by its gold reserves.

That assumes the US actually holds what is reported at Fort Knox — which is a separate discussion.

If US government debt were backed by gold at the same 51% level seen in the 1940s, total US gold reserves would need to be worth roughly $20 trillion.

With 261.5 million ounces of gold, that would imply a gold price near $75,000 per ounce.

This is just math — don’t shoot the messenger.

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