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The US government value of gold is hard pegged to $42/oz since 1973. Off by a factor of about 100 from market prices.
by WarmWash 1mo ago
The US government value of gold is hard pegged to $42/oz since 1973. Off by a factor of about 100 from market prices.
- aftbit 1mo agoWhat is the value of this? Clearly the US won't sell me gold for $42/oz or the arbitragers would own the country, and nobody will sell the US gold for that amount ... so what does the $42/oz "peg" actually mean?
- wl 1mo agoIf you're familiar with par value, it's the same thing. It's a measure to account for changes in asset holdings over time while neglecting changes in market value of that asset. They could have just used ounces to do the same thing here. It made more sense when there was a dollar peg.