Environmental, human rights, and community leaders are calling for a public debate on the wisdom of governments continuing to hold large gold reserves.

Gold, At What Price? The Need for a Public Debate on National Gold Reserves, is a report published by Mineral Policy Center, Project Underground and the Western Organization of Resource Councils. It presents compelling evidence that selling significant portions of gold reserves held by the U.S. and other countries could result in a huge financial payoff to taxpayers and prevent future environmental disasters.

By holding gold reserves&emdash;thus keeping a vast oversupply of the metal off the market&emdash; governments essentially promote the extraction of new gold and the environmental damage caused by large-scale, toxic gold mining. The report documents how U.S. gold reserves have declined in value from $215 billion to $73 billion since 1980&emdash;a loss of more than $100 billion, not counting the opportunity cost.

Central banks and international institutions hold more than 33,000 tons of gold &endash; more than 13 times annual global mine production. These reserves could satisfy gold demand (about 4,000 tons/year) for 8+ years. This "demand" is hardly a "need" &endash; 85% typically becomes jewelry. The U.S. holds the world's second-largest gold reserve (8,600 tons)&emdash; 54% of its reserves and a bad investment for U.S. citizens.

Drawing on the analysis, evidence, and opinions of investors, economists, and others, the report shows that gold is just another commodity. It also explores the potential environmental and social impacts of this shift and questions the wisdom of current U.S. policies, and those of other countries, which amount to a massive subsidy to the gold industry worldwide.

Environmental campaigners and taxpayer groups have attacked the direct and indirect subsidies governments give the mining industry through land-giveaways, royalty deals, tax breaks, and more. Yet, as this report shows, the global gold mining industry benefits from what may be the most profound corporate welfare for any industry, anywhere.

To obtain a copy of the report contact: Mineral Policy Center (202) 887-1872, Project Underground, (510) 705-8981, Western Organization of Resource Councils, (406) 252-9672