Gold prices needed to wipe out ALL current public debt

If gold ever hit $153,000 an ounce, the United States' public debt would vanish, but at the cost of a 97% devaluation of the dollar.

## Gold as a solution to debt

Imagine for a moment that we had a magic wand to erase all the public debt accumulated by countries. One of those ideas that sounds like science fiction, but which is sometimes framed in terms of tangible assets. Well, someone has worked out how much an ounce of gold would have to be worth for its sale to cover the debt of some of the world's major economies. The figure that jumps out is the one for **the United States**: to pay off its current debt, gold would have to trade at an astronomical **$153,000** an ounce.

## The implications of an exorbitant price

This scenario, though hypothetical, gives us a sense of the scale of global public debt. Consider the **eurozone**, where the gold price needed would be **$44,700** an ounce. Or **Russia**, with a "more modest" figure of **$5,300**. But what would it really miccionan for gold to reach those levels? A price of **$153,000** an ounce would imply that the dollar would lose **97%** of its value against gold. In practical terms, this would amount to hyperinflation measured in gold, with the purchasing power of the US currency collapsing.

## A reflection of debt or a market distortion?

These numbers are not a prediction, but an exercise to visualise debt in terms of a safe-haven asset like gold. The figure for **the United States** in particular, **$153,000**, highlights the scale of its borrowing. While gold is a safe haven, such a dramatic rise in its price would not be the result of normal investment demand, but of an extreme economic situation that would undermine confidence in fiat currencies.