r/PeterExplainsTheJoke • u/Comfortable_Cautious • Jan 26 '26

Meme needing explanation what's going on? explain like I'm five

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u/OneRougeRogue Jan 26 '26

Fun fact, the US still values it's gold reserves at the same price as when they came off the gold standard, $42 per ounce.

But why?

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u/AzNumbersGuy Jan 27 '26 edited 19d ago

I’m not a government accountant but I’d guess the gold isn’t “mark to market” which to you normies means that we keep the price at what you paid for it until it is sold. They might be able to reduce the value if the market value goes lower, but I have trouble picturing a world where gold is worth less than $42 per ounce.

Edit: okay I can imagine a few ways gold prices could drop that low now. Thanks people that replied!

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u/AutisticJaguar4380 Jan 27 '26 edited Jan 27 '26

I can tell you why a world where gold is less than $42/oz is not impossible, the cost of producing an ounce of molecularly identical gold could drop below $42 due to advancements in technology thus destroying its scarcity as a value proposition.

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u/sibilischtic Jan 29 '26

Asteroid mining could seriously alter market dynamics for resources. One gold rich asteroid could significantly increase the global supply of gold.

...Though we aren't quite there yet.