Posted on 07/11/2025 6:20:16 AM PDT by delta7
2.10 Gold Certificate Account (110-025) The Secretary of the Treasury is authorized to issue gold certificates to the Reserve Banks to monetize gold held by the U.S. Department of the Treasury (Treasury). At any time, Treasury may reacquire the gold certificates by demonetizing the gold.
Treasury maintains an account with the Board of Governors entitled "Gold certificate fund—Board of Governors of the FR System." When the Treasury monetizes gold, it credits this account in return for deposit credit at the Federal Reserve Bank of New York (FRBNY). When demonetizing gold, Treasury decreases the account and authorizes the FRBNY to charge its deposit account. The offsetting entry in each case on the FRBNY's books is made to the Gold Certificate account and the U.S. Treasury—general account. The FRBNY accounting staff sends an advice of these entries to the Board. Also, whenever the official price of gold is changed, Treasury adjusts the account and, simultaneously, the deposit account.
The Board maintains the account in the exact amount as shown on Treasury's books at all times. The entries are made pursuant to advice from the FRBNY and Treasury. The amount of gold certificates on each Bank's balance sheet must agree with the total in the Board's records. Monthly statements of the account are received from Treasury and confirmed by the RBOPS Financial Accounting Policy and Reporting Section.
The Board participates substantially all of the total gold among Reserve Banks based on Federal Reserve notes outstanding (see paragraph 40.70) with an additional amount allocated to the FRBNY as a cushion to accommodate Treasury sales during the year. By law, each Bank may pledge all or any part of its account with the Federal Reserve Agent as security for Federal Reserve notes. Prior to 1978, each Bank pledged a specific amount which was then earmarked in the Board's records on a separate ledger sheet, and thereafter was subject to and reduced only with prior approval from the Assistant Federal Reserve Agent. Beginning in 1978, each Bank's holdings were pledged automatically pursuant to a continuing agreement. The amount of gold certificates pledged with the Agent—currently the same as the balance sheet total at each Bank—is reported on the Daily Statement of the Federal Reserve Agent, Form FR 5 and is also confirmed periodically.
The gold certificate account serves as the medium for affecting an annual settlement among the Reserve Banks for amounts accumulated in the Interdistrict Settlement Account (ISA) (paragraph 5.00). Following the annual settlement, each Bank's gold certificate account is restored relative to the average Federal Reserve notes outstanding through a reallocation of securities in the System Open Market Account. (See paragraph 40.70.)
I believe that the Fed wants to see if gold certificates trade among member banks at a premium. If so, then it suggests at least a way to finance the federal debt if current measures prove inadequate.
The National Debt number will fluctuate based more on the revenues coming into the system than on expenditures (which for the most part are “set.”)
A $400B swing could be something like re-financing TBills at a higher rate. It could be accounting to 31 days in the month and not 30.
A $400B swing could also reflect a return to traditional funding mechanisms after the debt ceiling was raised last week,
$400B on our debt is a rounding error.
I think the average citizen, reading this, wants to know exactly what the heck is going on here? And this question applies to many other things that are in the news right now, like the Epstein deal. The public is interested in one thing...the truth.
IBTG
IBTS
Most likely leased out. Many in the field suspect it has been leased out to bullion banks, sovereign nations, etc … ownership has encumbrances.
I suspect most Gold is physically in Ft Knox, Denver, NY, as advertised, BUT if the lease trail is audited, there can be problems with “ ownership “. Much written on this.
That said, MANY are waiting for the full audit, we will not forget Trump’s promise.
It looks like the S&P 500 still wins.
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Close, but with Golds further rise, most likely $4200 then on to $5,000, you still have to deal with the equities being denominated in dollars, whose purchasing power is rapidly declining.( as are ALL the world’s paper currencies.)
I believe that the Fed wants to see if gold certificates trade …..
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Judy Shelton stated in two interviews issuing out Treasury debt instruments that will be fully redeemable in gold- however they will be 50 year plus Bonds, Notes.
Her interviews are on You Tube , easily found….the western financial markets have not mentioned this new development.
“Close, but with Golds further rise, most likely $4200 then on to $5,000,”
In 2014 you said gold would hit 2015. Now, over a decade later, we are not even half-way their in today’s dollars!
“Close”
Not even close when you factor in dividends, transaction and storage costs.
My wife’s Roth IRA. Apple up over 4000%.
LOL! The average person doesn’t care about the price of gold and doesn’t know whether Epstein is dead or alive.
“That said my source shows Gold just slightly outperforming the S&P since 1971.”
Did your source figure in dividends and storage fees? I bet not!
“If I have one of those gold certificates, can I go somewhere and pick up the physical gold?”
You can’t buy or hold one.
Redeemable in gold more or less means paper gold certificates. A trial run first thus makes sense.
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