An advisor to former U.S. President, Donald Trump, has proposed that the U.S. government could sell some of its gold reserves held at Fort Knox in Kentucky and invest the proceeds in Bitcoin if the move proves to be “budget-neutral”.
The suggestion was made by Stephen Moore, an economist and member of Trump’s economic recovery task force, who believes the U.S. government could be incentivized to sell portions of its vast gold reserves because of the rising value of Bitcoin. The federal government owns significant amounts of physical gold, much of which is stored at Fort Knox.
Speaking in an interview, Moore explained, “If it’s budget-neutral for us to sell some of our gold and acquire some Bitcoin, why wouldn’t we do that?” He made clear that the financial feasibility of such an exchange would be vital. “I’m not saying we have to do it, but if you can demonstrate that it has no impact on the deficit, why wouldn’t we do that?” Moore added.
The U.S. currently holds approximately 8,134 tonnes of gold in its reserves, according to the World Gold Council. At current prices, this equates to around $493 billion. However, Bitcoin’s recent surge in value – which saw it break the $65,000 mark in March 2021 – suggests that investing in the digital currency could potentially offer substantial gains.
Despite this, many financial experts are cautious about the volatility of Bitcoin and other cryptocurrencies. They warn that while there is potential for high rewards, there is also a significant degree of risk associated with these assets. This, combined with Bitcoin’s stagnant price movement over the past few weeks, may present hurdles to such a proposal being implemented.
While such a radical decision would undoubtedly require further discussion, Moore’s controversial suggestion demonstrates the ever-growing fascination with Bitcoin and other digital currencies as potential investment vehicles.
Last modified: March 25, 2025
