Monetary Base to Gold Owned by the United States

One gold valuation method is considering the monetary base to the gold owned by the United States. The logic is that the United States, by virtue of being a world superpower, having the world reserve currency, as well as a lot of gold holdings, has a large say in the value of gold.

From the Federal Reserve Economic Data (FRED), get the value of the monetary base here. The monetary base is $5,206,600,000,000 at time of writing. A definition of the monetary base is that it is the total currency circulating, plus the currency that is physically held in the vaults of banks, plus the bank reserves held in the central bank.

From the Treasury Department, get the gold owned by the United States. The estimate of the gold owned by the United States at time of writing is 261,498,926.241 troy oz.

We divide the monetary base by the gold owned by the United States, we get a valuation for gold of $5,206,600,000,000 / 261,498,926.241 troy oz =$19,910.60 / troy oz.

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