How a U.S. Sovereign Wealth Fund and Gold Revaluation Could Reshape Global Finance

On February 3 of this year, the White House released a “fact sheet” on President Donald Trump’s intention to create a U.S. sovereign wealth fund (SWF).

Make no mistake, the executive order by Trump to create a United States SWF is a seismic shift in national financial strategy.

Here’s just a piece of what the EO says…

This move not only signals a reevaluation of America’s fiscal approach, but also raises intriguing possibilities regarding the revaluation of the country’s gold reserves.

Now, unless you’ve been living under a rock, you know that there’s been significant media coverage about DOGE’s (the Department of Government Efficiency) plan to audit Fort Knox and the gold bullion it holds.

Trump wants to verify that the gold is actually there!

But it gets even deeper than that.

The U.S. government's long-standing valuation of gold at $42.22 per ounce originates from the Bretton Woods Agreement of 1944, which established a fixed exchange rate system. Under this system, the U.S. dollar was pegged to gold at a rate of $35 per ounce and other currencies were pegged to the dollar. The price was later adjusted to $42.22 in 1973 following the breakdown of Bretton Woods, but gold was still officially held at that value on government balance sheets.

The rationale behind maintaining this artificial valuation even after the U.S. left the gold standard in 1971 was primarily bureaucratic and accounting-related. Since the government no longer backed the dollar with gold, there was no immediate need to update the valuation. Instead, the Treasury continued to record gold holdings at the outdated official price, preserving a legacy accounting measure that reflected historical monetary policy rather than market reality.

Trump wants to revalue the government’s gold hoard at today’s market price. It would balloon the government’s asset side of its ledger by nearly $800 billion!

Updating the valuation to market prices would dramatically increase the Treasury’s asset base, providing potential financial leverage — such as issuing gold-backed bonds or bolstering a sovereign wealth fund. However, such a move could also have profound monetary and economic consequences, including heightened inflationary concerns and shifts in global confidence in the U.S. dollar.

If the U.S. government were to revalue its gold at market prices rather than its historic $42.22 per ounce valuation, the impact could be profound, potentially reshaping global gold markets, driving a commodities boom, and influencing monetary policy worldwide.

In this Wealth Daily, we will explore the possible structure of a U.S. sovereign wealth fund, analyze the potential impact of gold revaluation, and speculate on how a gold-backed stablecoin, such as NatGold, could integrate into this financial landscape.

A U.S. Sovereign Wealth Fund: What It Could Look Like

Sovereign wealth funds (SWFs) are state-owned investment funds designed to manage national wealth and generate returns for the benefit of the country. Norway’s Government Pension Fund Global (GPFG), one of the largest SWFs in the world, serves as a model, leveraging oil revenues to create long-term financial stability. A U.S. SWF could follow a similar blueprint but would likely be funded through a combination of natural resource reserves, federal land holdings, tax revenues, and strategic investments in key industries.

Potential Funding Sources:

• Gold Reserves: The U.S. holds approximately 261.5 million ounces of gold, primarily stored at Fort Knox. A revaluation at market prices could increase the government’s balance sheet by over $750 billion, providing substantial capital for the SWF.
• Oil and Gas Reserves: Leveraging energy production revenues, as Norway does, could provide steady cash flows.
• Federal Land Assets: The U.S. government owns vast land resources, which could be strategically leveraged for infrastructure development and other investment initiatives. The U.S. federal government owns approximately 640 million acres of land… with a significant percentage of that land designated for energy extraction and transportation.
• Strategic Industry Investments: Investing in key sectors such as cryptocurrencies, technology, renewable energy, and industrial metals critical for AI and EV markets could generate high returns.

The SWF’s structure would likely include a governance model ensuring transparency, accountability, and strategic allocation of funds to maximize returns while preserving capital for future generations.

How Much Wealth Would Each U.S. Citizen Receive?

If structured as a public benefit fund, a U.S. SWF could provide direct financial benefits to citizens. A few distribution models could emerge:

• Dividend Model: Similar to Alaska’s Permanent Fund, which distributes annual dividends from oil revenues, the U.S. SWF could provide annual payments to every citizen. If the fund generated $100 billion in returns annually and this were divided among 330 million Americans, each citizen could receive around $303 per year.
• National Debt Reduction Model: Rather than direct payments, revenues could be used to pay down national debt, potentially strengthening the dollar and reducing long-term economic burdens.
• Investment in Public Infrastructure: A portion of the fund’s earnings could be allocated to public works projects, education, and health care, indirectly benefiting all Americans.

The Gold Revaluation and Its Global Impact

Like I said earlier, the U.S. government values its gold reserves at $42.22 per ounce — a valuation dating back to the Bretton Woods era. In contrast, the market price of gold hovers near $3,000 per ounce. Revaluing U.S. gold holdings to reflect current market prices would unlock enormous financial potential.

1. Impact on Global Gold Prices
   • A revaluation of Fort Knox gold reserves would legitimize gold’s monetary role, reinforcing its importance as a financial asset.
   • It would likely drive a speculative rally in gold prices, as investors anticipate central banks worldwide adjusting their gold reserves accordingly.
   • Other nations might be pressured to follow suit, resulting in a coordinated global shift in gold valuations.
2. Strengthening the U.S. SWF and Federal Balance Sheet
   • With an adjusted valuation, U.S. gold reserves would increase in worth by over $750 billion.
   • This could provide instant liquidity for funding the SWF without relying on taxation or debt issuance.
   • Higher-valued reserves could be leveraged for backing new financial instruments, including gold-backed bonds or currency stabilization mechanisms.
3. Potential for a Global Commodities Boom
   • Rising gold prices would likely spill over into other metals, benefiting silver, copper, platinum, and palladium.
   • Increased valuations could encourage new mining projects and infrastructure expansion to support resource extraction.
   • Industrial metals used in AI, cryptocurrency mining, and EV production could see significant appreciation due to increased investor interest.

The Role of NatGold as a Gold-Backed Stablecoin

In a scenario where U.S. gold is revalued, digital assets backed by gold could play a crucial role in financial markets. NatGold, a token backed by verified, unmined gold reserves, could benefit in multiple ways:

• Store of Value: As inflation and economic uncertainty persist, gold-backed stablecoins like NatGold could serve as a hedge against fiat currency devaluation.
• Increased Institutional Adoption: If the U.S. revalues its gold, institutions may look to digital gold assets as a liquid and tradable alternative to physical bullion.
• Integration With the U.S. SWF: The sovereign wealth fund could tokenize a portion of its gold reserves, issuing NatGold tokens to represent fractional ownership. This could democratize access to gold assets and enhance financial inclusion.
• Untapped, Unmined Gold in the United States: Estimates of unmined gold reserves in the United States indicate a substantial amount of this precious metal remains undiscovered. According to the U.S. Geological Survey (USGS), the nation possesses approximately 33,000 tons of gold resources. This total comprises 15,000 tons of identified resources and an additional 18,000 tons classified as undiscovered resources. Notably, nearly one-quarter of these undiscovered resources are believed to be contained within porphyry copper deposits. At today's market price of approximately $2,950 per ounce, the estimated 33,000 tons of unmined gold in the United States would be worth approximately $3.13 trillion.

Regarding federal lands, precise figures on unmined gold reserves are not readily available. However, as of September 2018, there were 872 authorized mining operations covering about 1.3 million acres of federal land. These operations primarily focus on various minerals, including gold.

Given that the U.S. government manages approximately 640 million acres of public lands, with significant portions in the western states and Alaska, it's plausible that these areas harbor considerable unmined gold reserves.

• Alternative to CBDCs: If concerns over government-controlled digital currencies persist, privately issued, asset-backed stablecoins could gain traction as a decentralized alternative.

Wealth Daily’s Conclusion

The potential creation of a U.S. sovereign wealth fund, coupled with a gold revaluation strategy, could mark a turning point in global finance. Revaluing gold at market prices would not only strengthen the U.S. balance sheet but also catalyze a worldwide shift in gold markets and commodity investments. Meanwhile, tokenized gold assets like NatGold could emerge as key players in a new digital financial era, providing a bridge between traditional asset valuation and the future of decentralized finance.

As discussions around the SWF and gold revaluation continue, investors should prepare for potential seismic shifts in both monetary policy and commodities markets. Whether through direct citizen dividends, national infrastructure investments, or digital asset integration, the financial landscape of the next decade could look radically different from today.

The Prophet of Profit,

Brian Hicks

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Brian is a founding member and President of Angel Publishing. He writes about general investment strategies for Wealth Daily and Energy and Capital. Brian is the managing editor and investment director of R.I.C.H Report (Retired Independent Carefree Healthy) and New World Assets. For more on Brian, take a look at his editor's page.

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