This week’s Parade magazine [normally NOT a paragon of business news] has an article from Wharton professor Jeremy Siegel asking “Should the U.S. sell its gold?”
He noted that the United States ended its gold-based mon etary system in 1971 yet we maintain about $288 billion in bullion reserves [ > 8000 metric tons]. This could theoretically be liquidated today to pay down at least a portion of our national debt.
Siegel notes that even after the recent run-up in gold prices and the big sell-off in stocks since the 2007 highs;
- Gold has returned 8.86% annualized
- Stocks have returned 9.76% annualized