Sunday, November 18, 2012

US gold reserves and US Treasury debt owned by foreigners

This is a table of US Federal debt held by foreign investors.  It aggregates the amount of US Treasury debt owned by foreigners.  As of April 1, 2012, foreign investors hold $5,292,300,000,000 of US Treasury debt.

As of October 31, 2012, the US Treasury has 261,498,926.247 troy ounces (8133.5 metric tons) of gold in its vaults.

Using first grade arithmetic, and dividing the first number by the latter number, we calculate that each ounce of gold backs $20,238.32 of US Treasury debt owned by foreign bond holders.  As of November 16, 2012, the spot price of gold is $1713.70 per troy ounce.

These numbers should understandably concern foreign holders of US Treasury bonds.  And it also explains why they are accumulating gold as far as they can.  See China.

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