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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.)
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“Assets: Other: Gold Certificate Account….
Graph charts…..
https://fred.stlouisfed.org/series/WGCAL
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Last call, all aboard!
Gonna need a bigger vault........................
“At any time, Treasury may reacquire the gold certificates by demonetizing the gold.”
No thanks. My gold and silver will stay right where they are.
And it’s not really possible to demonitize gold as long as people will use it as a medium of exchange. If you will take some of my gold or silver in exchange for goods or services then it is in fact money.
L
What were the things that signified wealth in the Bible?
Land
Water
Livestock
Silver
Gold
Has anything really changed?
Gonna need a bigger vault.
———-
Still waiting for Trump’s US Gold Reserve full assay audit…it appears the Congressional bill introduced to audit Ft Knox and our Gold Reserve has stalled out.
The Bill was introduced and intended to force Trump to see if our Gold is still there….some is starting to stink.
These have been around for ages. It’s easier to move paper around (now digital) than physically moving gold from vault to vault. The actually used to do that at the fed.
In any event the methods for accounting for gold at the Fed are fairly archaic. And the price of gold on the books is around d $42. That is set by statute.
I doubt very much if that is going to change any time soon.
I had trouble following the article. Too much technical lingo for me.
The big question (actually the only question): If I have one of those gold certificates, can I go somewhere and pick up the physical gold?
If not, then this seems like just another smokescreen to me.
Side story: I’m old enough to remember going down to my local bank and handing them a $10 bill. I’d get back a roll of quarters, 40 coins that were 90% silver.
Back then, that piece of paper ($10) represented something real. Today, not so much.
Does this sound like sleight of hand?
Back then, that piece of paper ($10) represented something real. Today, not so much.
————
That roll of US silver coinage bought back then for 10 USD, is now worth $271 USD.
Most just can’t wrap their head around just how much our dollar has fallen, it’s purchasing power is rapidly losing ground. Silver or Gold isn’t rising, the amount of USD’s to buy it is increasing.( USD declining).
* $10 pre-64 silver coinage, .715 Troy ounces = $1 face….thats 7.15 ounces of silver, at $37.80 spot, equals 271 USD’s.
I got my vault filled to the top with frankincense and myrrh
smiles smiles
(but yes, your point is certainly valid! gold and silver and rare stones have been used as money in many societies throughout human history... Whereas “federal reserve notes” are a relatively new invention, and one that has yet to prove itself...)
> That roll of US silver coinage bought back then for 10 USD, is now worth $271 USD. <
Out of curiosity I just looked it up. Suppose that $10 bill had been put into the S&P 500 in 1964. If the Internet is to be trusted, that investment would now be worth roughly $3800.
That number assumes all dividends are reinvested. But it’s not a completely accurate number because it does not consider taxes or investment fees.
I suppose the moral of the story is diversify. Just don’t keep a whole lot in those crappy paper $10 bills.
Returns on PM’s. That said my source shows Gold just slightly outperforming the S&P since 1971.
Yes. Definitely
Good point. I was looking how junk silver performed over the years. But gold has done much better.
One ounce of gold in 1964: $35 (roughly)
One ounce of gold today: $3350
It looks like the S&P 500 still wins. But again, my S&P 500 numbers did not consider taxes or fees. There’s also the stomach ache factor. Wild swings in the S&P can induce stomach aches (and panic).
So diversify. Heck, at one time the Pennsylvania Railroad was the largest company in the world. An older relative of mine had a huge investment in that company.
PRR went bankrupt in 1976.
🙁
Dmm Nixon.
And LBJ.
No Vietnam, no massive debt, no strain on the gold standard.
The Cycle is changing. All paper currencies are losing purchasing power rapidly. Timing is everything.
Since 1971, when the US discarded the Gold standard, paper started performing well…..cycles, nothing last forever…with all the historic unpayable debt, the tide is turning….it is just time.
In any case, some will lose, some will prosper….remember Trade and Commerce will continue as it has for 5,000 years.
Has the US Treasury been selling the Fort Know gold to the Federal Reserve???
I have been wondering why the National Debt has not increased this year. Could this be the reason why????
Check out the
https://fiscaldata.treasury.gov/datasets/debt-to-the-penny/debt-to-the-penny
Also note the $400 billion jump in the National Debt in the past three days.
Are the books being cooked?????
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