The Fed’s Gold Stash

Alea brings up a very good point. The Federal Reserve’s gold holdings are marked at a price of $42.22 an ounce by law. The current market price is about $1250 an ounce.
According to Alea, going to mark-to-market “would force the Federal Reserve to disgorge more than $300 billion in exceptional profits to the Treasury. Germany did it 13 years ago, no reason for the US not to follow.”

Posted by on September 13th, 2010 at 1:35 pm


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