Crescat Capital’s research highlights gold’s resurgence as a monetary anchor amid unprecedented US debt levels.
Currently, US Treasury gold reserves account for just 2% of outstanding government debt—one of the lowest ratios in history and dramatically below the 40% backing seen during WWII. This imbalance creates a compelling case for gold revaluation, with models suggesting prices of $24,000 per ounce if gold-to-debt ratios returned to 17%, or $55,000 per ounce at 40% coverage.
Meanwhile, a significant global monetary realignment is underway as international central banks rapidly accumulate gold reserves, which have reached a 49-year high, while US reserves have fallen to a 90-year low. The US now holds just 20% of global gold reserves—down from over 50% in the 1950s.
With the Treasury market experiencing unprecedented three-year declines and the dollar potentially entering a structural downtrend, Crescat argues the US must join the gold-buying trend to restore fiscal discipline and monetary stability.